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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (66578)	2/2/2001 8:35:54 AM
From: 2MAR$	Read Replies (1) \| Respond to of 122087

Critical Path Forms Special Committee of the Board of Directors to Conduct Investigation Into Revenue Recognition Issues; Two Officers Put On Administrative Leave SAN FRANCISCO, Feb 2, 2001 /PRNewswire via COMTEX/ -- Critical Path, Inc. (Nasdaq: CPTH chart, msgs) announced today that the Board of Directors has formed a special committee of the Board to conduct an investigation into the Company's revenue recognition practices. The Company has discovered a number of transactions that put into question the Company's financial results. On January 18, 2001, the Company announced Fourth Quarter revenue of $52 million in revenue and net loss, excluding special charges, of $11.5 million. The Company now believes that these results may be materially misstated. The Company cautioned that the investigation has just begun. Effective immediately, the Board of Directors has placed on administrative leave David Thatcher, the Company's president, and William Rinehart, the vice president of worldwide sales. The special committee and the Company are working with its independent auditors, PricewaterhouseCoopers, and outside counsel, Wilson Sonsini Goodrich & Rosati. Source: Critical Path, Inc. Contact: Don Markley, Director of Investor Relations, 415-344-5503