Critical Path Announces Strategic Plan to Put the Company Back On The Path To Profitability

Company Streamlining Products and Personnel, Laying Off 450 Employees



Apr 10, 2001, 01:00 ET from Critical Path, Inc.

    SAN FRANCISCO, April 10 /PRNewswire/ -- Critical Path, Inc.
 (Nasdaq:   CPTH), a leading global provider of Internet communication
 infrastructure, today announced its strategic plan to put the company back on
 the path to profitability.  Critical Path has organized its management team to
 speed implementation of the strategic plan by streamlining personnel and
 focusing the company on its core products.
     "Today marks a new beginning for Critical Path," said David Hayden,
 Critical Path's founder and Executive Chair.  "We offer the best products in
 our market space that enable businesses to take advantage of the growth of
 Internet and wireless communications.  The last weeks have been difficult for
 Critical Path, but now we have turned the corner with the implementation of a
 reorganization designed to reduce costs and focus the company on its core
 products."
 
     Hayden outlined Critical Path's three-part strategic plan:
 
      -- First, Critical Path is reorganizing around its fundamental, core
         business products for the purpose of building long-term value:
         Developing, producing and providing the best commercial e-mail carrier
         services in the world.  In particular, the company's new leadership
         will refocus on core products and jettison products that are not
         central to the company's long-term growth strategy.  At Critical
         Path's core will be the company's Internet Messaging Infrastructure
         platform, including mail, calendar, address book, file storage,
         management services, directory and meta-directory, and access services
         supporting wireline and wireless users.
 
      -- Second, Critical Path is reducing costs by closing redundant offices,
         phasing out non-essential services, and reducing personnel who are not
         involved in Critical Path's core business.  The company will lay off
         approximately 450 employees in this process.
 
      -- Third, to speed implementation of the strategic plan, Critical Path
         has appointed Bill McGlashan as Interim Chief Operating Officer and
         Amy Rao as Interim Vice President for Sales.  McGlashan and Rao will
         work with Critical Path founder David Hayden and Chief Financial
         Officer Larry Reinhold to carry out the strategic plan as quickly as
         possible.  Former executives affected by the lay-offs include, Diana
         Whitehead, President, and Mari Tangredi, Executive Vice President of
         Business Development, Sales and Professional Services.
 
     Bill McGlashan is the CEO of the Vectis Group, a world-wide technology
 investment company.  Amy Rao is the CEO of Integrated Archive Systems (IAS), a
 systems integrator and managed services company she founded in 1994.
 
     This press release contains forward-looking statements, including the
 Company's statements regarding the growth potential of the Internet-based
 communications market, the Company's ability to implement its new strategic
 management plan effectively, and the Company's ability to achieve anticipated
 cost reductions and profitability in doing so.  These forward-looking
 statements involve a number of risks and uncertainties that could cause actual
 results to differ materially.  Specifically, the market for Internet-based
 communications may not grow at the rate expected by the Company, in which case
 the Company's business and financial results could be adversely affected.
 Additionally, the Company may be unable to implement its new strategic
 initiative as planned due to the Company's inability to overcome any
 disruptions from management and employee turnover, retain those employees who
 are integral to the new strategic initiative, identify expenses that can be
 eliminated, and manage unforeseen expenses the Company may incur in future
 quarters.  Other risks and uncertainties related to the Company are described
 in the Company's Annual Report on Form 10-K filed with the Securities and
 Exchange Commission on April 4, 2001 and in subsequent filings made with the
 Commission which are available at the Commission's web site www.sec.gov .
 
 

SOURCE Critical Path, Inc.
    SAN FRANCISCO, April 10 /PRNewswire/ -- Critical Path, Inc.
 (Nasdaq:   CPTH), a leading global provider of Internet communication
 infrastructure, today announced its strategic plan to put the company back on
 the path to profitability.  Critical Path has organized its management team to
 speed implementation of the strategic plan by streamlining personnel and
 focusing the company on its core products.
     "Today marks a new beginning for Critical Path," said David Hayden,
 Critical Path's founder and Executive Chair.  "We offer the best products in
 our market space that enable businesses to take advantage of the growth of
 Internet and wireless communications.  The last weeks have been difficult for
 Critical Path, but now we have turned the corner with the implementation of a
 reorganization designed to reduce costs and focus the company on its core
 products."
 
     Hayden outlined Critical Path's three-part strategic plan:
 
      -- First, Critical Path is reorganizing around its fundamental, core
         business products for the purpose of building long-term value:
         Developing, producing and providing the best commercial e-mail carrier
         services in the world.  In particular, the company's new leadership
         will refocus on core products and jettison products that are not
         central to the company's long-term growth strategy.  At Critical
         Path's core will be the company's Internet Messaging Infrastructure
         platform, including mail, calendar, address book, file storage,
         management services, directory and meta-directory, and access services
         supporting wireline and wireless users.
 
      -- Second, Critical Path is reducing costs by closing redundant offices,
         phasing out non-essential services, and reducing personnel who are not
         involved in Critical Path's core business.  The company will lay off
         approximately 450 employees in this process.
 
      -- Third, to speed implementation of the strategic plan, Critical Path
         has appointed Bill McGlashan as Interim Chief Operating Officer and
         Amy Rao as Interim Vice President for Sales.  McGlashan and Rao will
         work with Critical Path founder David Hayden and Chief Financial
         Officer Larry Reinhold to carry out the strategic plan as quickly as
         possible.  Former executives affected by the lay-offs include, Diana
         Whitehead, President, and Mari Tangredi, Executive Vice President of
         Business Development, Sales and Professional Services.
 
     Bill McGlashan is the CEO of the Vectis Group, a world-wide technology
 investment company.  Amy Rao is the CEO of Integrated Archive Systems (IAS), a
 systems integrator and managed services company she founded in 1994.
 
     This press release contains forward-looking statements, including the
 Company's statements regarding the growth potential of the Internet-based
 communications market, the Company's ability to implement its new strategic
 management plan effectively, and the Company's ability to achieve anticipated
 cost reductions and profitability in doing so.  These forward-looking
 statements involve a number of risks and uncertainties that could cause actual
 results to differ materially.  Specifically, the market for Internet-based
 communications may not grow at the rate expected by the Company, in which case
 the Company's business and financial results could be adversely affected.
 Additionally, the Company may be unable to implement its new strategic
 initiative as planned due to the Company's inability to overcome any
 disruptions from management and employee turnover, retain those employees who
 are integral to the new strategic initiative, identify expenses that can be
 eliminated, and manage unforeseen expenses the Company may incur in future
 quarters.  Other risks and uncertainties related to the Company are described
 in the Company's Annual Report on Form 10-K filed with the Securities and
 Exchange Commission on April 4, 2001 and in subsequent filings made with the
 Commission which are available at the Commission's web site www.sec.gov .
 
 SOURCE  Critical Path, Inc.