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Tucows to Host New Messaging Service

The Web has become the major method of communication between people. Supplying a messaging service to clients is a great way to increase site popularity, as well as increase revenues due to advertising. Recently, Tucows made a deal with a software company to purchase their messaging service. Critical Path, Inc. (CPTH), 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 Messaging, for up to $8.0 million in cash plus the assumption of some contractual liabilities. Tucows intends to offer Critical Path`s Memova Messaging software as a hosted service.

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. `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 the licensing agreement and relationship with Tucows, CPTH can continue to offer multiple delivery options for their messaging software and ensure ongoing service for existing hosted messaging customers. With this acquisition, Tucows becomes a leader in hosted email, especially hosted email for Internet service providers and Web hosting companies. It is consistent with their strategy to be a leading provider of Internet services to service providers. It will add a number of new service provider customers, deepen the relationships with existing customers, and diversify their revenue streams. Tucows looks forward to a long and productive relationship with Critical Path.