Critical Path Strengthens Focus on Software with Sale of Hosted Assets to Tucows

SAN FRANCISCO -- Dec. 15, 2005 -- Critical Path, Inc., a leading provider of messaging software and services, today announced that it has signed a definitive agreement to sell its hosted messaging assets, including its hosted messaging customer base, its assembled hosted messaging workforce and other elements of goodwill, as well as its hosted messaging hardware, to Tucows, a leading provider of Internet services and downloadable software. Tucows will acquire the hosted messaging assets, along with a software license for Memova(TM) Messaging, for up to $8.0 million in cash plus the assumption of some contractual liabilities. Tucows intends to offer Critical Path's Memova(TM) Messaging software as a hosted service.

"The sale of our hosted messaging assets allows Critical Path to strengthen our focus on innovation and dedicate more resources to the development of best-in-class software for mobile, fixed-line and broadband service providers," said Mark Ferrer, CEO and Chairman, Critical Path. "In addition, through our licensing agreement and relationship with Tucows, we can continue to offer multiple delivery options for our messaging software and ensure ongoing service for existing hosted messaging customers."

Tucows expects no disruption in service for existing hosted messaging customers. Tucows will assume full management of the hosted messaging infrastructure and continue to run current data center operations in Denver, Colorado and London England. In addition, Tucows will hire the majority of Critical Path's hosted operations and support teams.

"With this acquisition, Tucows becomes a leader in hosted email, especially hosted email for Internet service providers and Web hosting companies," said Elliot Noss, President and CEO, Tucows Inc. "It is consistent with our strategy to be a leading provider of Internet services to service providers. It will add a number of new service provider customers, deepen our relationships with existing customers, and diversify our revenue streams. We look forward to a long and productive relationship with Critical Path."

The Tucows acquisition of Critical Path hosted messaging assets is expected to close January 3, 2006 and is subject to standard closing requirements.

About Critical Path, Inc.

Critical Path's Memova(TM) solutions provide a new and improved email experience for millions of consumers worldwide, helping mobile operators, broadband and fixed-line service providers unlock the potential of email in the mass market. Memova(TM) Mobile gives consumers instant, on-the-go access to the messages that matter most. Featuring industry-leading anti-spam and anti-virus technology, Memova(TM) Anti-Abuse protects consumers against viruses and spam. Memova(TM) Messaging provides consumers with a rich email experience, enabling service providers to develop customized offerings for high-speed subscribers. Headquartered in San Francisco with offices around the globe, Critical Path's messaging solutions are deployed by more than 200 service providers throughout the world. More information is available at www.criticalpath.net.