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Critical Path, Inc.
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News Release

Critical Path Acquires Fabrik`s Outsourced Email Business; Acquisition Adds Nearly 500 Customer Relationships


    Business Editors/High Tech Writers

    SAN FRANCISCO--(BUSINESS WIRE)--June 2, 1999--Critical Path, Inc. (NASDAQ: CPTH), a leading provider of business-to-business email service solutions for Internet service providers (ISPs), Web hosting companies, Web portals, and corporations, today announced it has agreed to acquire Fabrik Connect, the outsource email business of Fabrik Communications, Inc., a digital direct marketing services company. Critical Path purchased both the ongoing business operations and the nearly 500 customer relationships of Fabrik Connect.

Fabrik Connect was created as a gateway email service solution to address the needs of the corporate market, which requires a high level of reliability, scalability and functionality. Fabrik Communications has been developing email business solutions for corporate sites since 1994, and will now focus solely on the digital direct marketing arena. The acquisition will continue to expand Critical Path's reach in the enterprise market, as well as enrich the company's enterprise solution providing gateway technology to help address needs of companies using non-standard protocols.

"Critical Path is committed to maintaining our leadership position in the email outsourcing market," said Doug Hickey, Critical Path's president and CEO. "Fabrik Connect has created a niche market and developed a highly targeted customer base. The acquisition exemplifies our accelerated strategy into the corporate market. We look forward to building relationships with these newly acquired customers and continuing to provide them with the most advanced email messaging services."

"With our recent focus on the digital direct marketing arena, this was a perfect time to transition our Fabrik Connect business to Critical Path," said Butch Winters, Fabrik Communications CEO. "Critical Path is an industry leader and will offer Fabrik Connect's customers the opportunity to outsource more of their email services."

About Fabrik Communications, Inc.

Headquartered in San Francisco with offices in Denver and New York, Fabrik Communications, Inc. (http://www.fabrik.com/) develops and integrates Web, messaging, and database technologies to assist corporate clients with customer acquisition and retention. In addition to its direct marketing services, Fabrik owns and supports the Web's Catalogs2GO.com catalog portal site. Founded in 1994, Fabrik is a privately held company with investment support from Accel Partners, Crosspoint Venture Partners, Vanguard Venture Partners, and Harborvest Venture Partners. For more information about Fabrik Communications, visit http://www.fabrik.com/; e-mail sales@fabrik.com; or call 1-800-732-2745 or 415-439-6600.

About Critical Path, Inc.

Critical Path, Inc. (Nasdaq: CPTH) is a leading provider of business-to-business email service solutions for Internet service providers (ISPs), Web hosting companies, Web portals, and corporations. Critical Path has built an industry-leading global infrastructure with data centers connected to key Internet exchange points, and currently reaches millions of end-users through its partnership agreements. Critical Path provides reliable, secure, and scalable email, and a flexible suite of enhanced messaging services to partners such as E*Trade, Network Solutions, U S West, Sprint, and AOL/ICQ. Critical Path is headquartered in San Francisco, California, with offices in locations nationwide and in Germany and the UK. More information on Critical Path can be found at http://www.cp.net/.

Note to Editors: Critical Path and the Critical Path logo are the trademarks of Critical Path, Inc. All other trademarks are the property of their holders.

This press release contains forward-looking statements that involve risks and uncertainties. The company's actual results could differ materially from those indicated in these forward-looking statements. Risks and uncertainties relating to Critical Path are described in Critical Path's prospectus dated May 11, 1999 and with the periodic filings Critical Path makes with the Securities and Exchange Commission (http://www.sec.gov/).

     --30--eb/sf*

     CONTACT: Critical Path, Inc.
              Stefanie Elkins, 415/344-5503
              selkins@cp.net

     KEYWORD:  CALIFORNIA
     INDUSTRY KEYWORD:  INTERACTIVE/MULTIMEDIA/INTERNET MERGERS/ACQ


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