EXHIBIT 99.1

The condensed consolidated balance sheets of Critical Path, Inc. reflect the actual audited condensed consolidated balance sheet as of December 31, 2000, the actual unaudited condensed consolidated balance sheet as of June 30, 2001 and the unaudited condensed consolidated pro forma balance sheet as of June 30, 2001. The pro forma balance sheet reflects certain adjustments related to the repurchase of $192 million of face value of its outstanding convertible subordinated notes, which occurred during the third quarter of 2001, as if the purchases had occurred on June 30, 2001.

In aggregate the pro forma balance sheet reflects cash paid of $50.7 million in principle and accrued interest and includes the affects of the reduction in cash related to the payment of principal of approximately $47.9 million and accrued interest of approximately $2.8 million and the elimination of the related outstanding principle of approximately $192.0 million and accrued interest of approximately $2.8 million. At June 30, 2001 unamortized debt issuance costs for Critical Path were approximately $8.2 million, and accordingly the pro forma balance sheet reflects a $5.4  million adjustment to write down the debt issuance costs related to the portion of the notes, which were repurchased. The repurchase of $192 million of face value of its outstanding convertible subordinated notes resulted in a significant net gain, and accordingly the pro forma balance sheet reflects an adjustment to shareholders' equity of approximately $138.7 million in extraordinary gain.

CRITICAL PATH, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

				Actual		Actual				Pro Forma
				December 31,		June 30,				June 30,
				2000		2001				2001
			(Unaudited)
ASSETS
Current assets
	Cash, cash equivalents and short-term investments			$	216,542	$	132,586		$	81,890
	Restricted cash				215		1,032			1,032
	Accounts receivable, net				38,938		29,437			29,437
	Other current assets				10,252		6,997			6,997
		Total current assets			265,947		170,052			119,356
Long-term investments					10,610		8,349			8,349
Notes receivable from officers					2,702		2,370			2,370
Property and equipment, net					85,304		73,000			73,000
Intangible assets, net					77,339		44,298			44,298
Other assets					8,953		9,298			3,886
		Total assets		$	450,855	$	307,367		$	251,259
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities
	Accounts payable			$	43,710	$	34,059		$	31,296
	Accrued expenses				10,377		7,645			7,645
	Deferred revenue				15,720		15,593			15,593
	Capital lease and other obligations, current				9,363		6,899			6,899
		Total current liabilities			79,170		64,196			61,433
Convertible subordinated notes payable					300,000		295,000			102,990
Capital lease and other obligations, long-term					4,687		2,303			2,303
		Total liabilities			383,857		361,499			166,726
Commitments and contingencies
Minority interest in consolidated subsidiary					649		—			—
Shareholders’ Equity (Deficit)					66,349		(54,132	)		84,533
		Total liabilities and shareholders’ equity (deficit)		$	450,855	$	307,367		$	251,259