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Critical Path Launches AdDirector

DUBLIN, Ireland-(Business Wire)-July 3, 2008 - Critical Path, Inc., a leading provider of messaging software and services, today announced the launch of AdDirector, a real-time targeted advertising platform enhancing its Memova(R) solution portfolio. AdDirector enables service providers to generate incremental revenue from existing messaging and portal assets through targeted advertisements, bridging both mobile and fixed line services.

Online and mobile advertising is growing rapidly in both revenue and importance — with analysts estimating that worldwide spending will reach tens of billions of Euros by 2012. The mobile channel provides a particularly compelling opportunity for advertising due to its ability to reach a more targeted audience in a highly relevant fashion.

Consumers have indicated that they are more open to receiving advertising as part of their mobile services. Independent research conducted by Vanson Bourne on behalf of Critical Path identified that 79% of mobile phone users are willing to accept advertisements attached to mobile email messages if the service was free.

"Operators are faced with an increasing demand to manage the costs of critical non-revenue generating consumer services while also trying to grow revenue from new services," says Nikki Gore, Vice-President, Marketing, Critical Path. "AdDirector extends advertising business models to online and mobile services. This allows our customers to offset some or all of the subscriber costs that pose a barrier to usage while at the same time protect revenue streams. It's a win-win for the consumer and the service provider."

AdDirector complements Critical Path's Memova solution portfolio, enabling service providers to deliver targeted advertising through multiple channels including portals, online and mobile email, SMS and MMS, and the emerging set top console venue. Multiple advertising formats are supported and the solution provides the service provider with the flexibility to define multiple concurrent classes of services for advertising funded and advertising sponsored models. Designed for ease of implementation and scalability, AdDirector bridges multiple ad platforms creating a single integrated point from which to access and deliver targeted advertising content from a variety of sources.

About Critical Path, Inc.

Critical Path is about Messages that Matter(R). For consumers, this means messaging services that deliver a better email experience, rich multimedia sharing capabilities and on-the-go access to the messages that matter most. For service providers, this means mass-market solutions that have a significant impact on the bottom line — value-added messaging services that attract new subscribers, drive revenue and improve customer loyalty. Founded in 1997, Critical Path has deep messaging experience and a strong track record of success. With offices around the globe, Critical Path's solutions have been deployed by more than 200 service providers throughout the world, including Vodafone, Telecom Italia, O2, Telefonica Moviles, Tiscali, SFR, Indosat, WIND and ONO.

Forward-Looking Statements:

This press release contains forward-looking statements by Critical Path and its executives regarding the performance of our product and service offerings, the availability of our customer's products and services which include our offerings, industry trends, the ability of our products and services to meet the business needs of our customers, and the market for products and services like ours. The words and expressions "look forward to," "will," "expect," "plan," "believe," "seek," "strive for," "anticipate," "hope," "estimate" and similar expressions are intended to identify the Company's forward-looking statements. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the emerging and changing nature of the market for our products and services, and the ability of our technology to address customer demands. The Company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made.

Note to Editors: Critical Path, the Critical Path logo, Memova and the Memova logo are the trademarks of Critical Path, Inc., registered in various jurisdictions. All other trademarks are the property of their respective holders.

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