CSI Announces Fourth Quarter and Year-End Results.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Sept. 28, 2000

CRITICARE SYSTEMS, INC. (NASDAQ-NMS: CXIM) today announced fourth quarter and year-end results for fiscal year 2000. Fourth quarter revenue was $7.5 million versus $7.2 million for the same period last year.

June represented a record shipment month, as the company cleared its backlog of the new Poet(R) monitoring line. As previously reported, an LCD shortage delayed shipments by three months and subsequent exposure to the marketplace. Revenue for fiscal year 2000 was $27.2 million compared to $28.5 million for fiscal 1999. The difference is due to the delay of the new monitors and pricing on the line being replaced. Profit (loss) for fiscal year 2000 was ($187,000), or ($0.02) per share compared to ($4.4 million), or ($0.51) per share for the previous year. This includes a one-time gain of $2.5 million from the sale of Immtech stock used to settle a previous lawsuit, and an increase of $925,000 of reserves against International receivables.

CSI president and CEO, Emil Soika, stated, "The emphasis this past year was on rebuilding the company by focusing on new products, OEM, distribution, and cost. Key events were: two FDA approvals to market received in the fourth quarter for our new line of monitors; four new OEM accounts added during the year including Baxter International and Agilent (HP). In June, the company entered into an agreement for offshore manufacturing and distribution of certain products. Also in the fourth quarter, the company began implementing a dedicated hospital sales team independent of its Alternate Site Group. This addition was timed to coincide with the availability of the new monitoring line."

Soika continued, "This year's rebuilding carried the price of transition. However, we believe CSI has been elevated to a far greater competitive position. The company remains free of long-term debt, except for its building mortgage, has a readily accessible line of credit, and is a major shareholder of Immtech International, an emerging biotech company."

Criticare Systems, Inc. (www.csiusa.com) designs, manufactures, and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world.

This press release contains forward-looking statements. Such statements refer to the company's beliefs and expectations. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described. Such uncertainties include, but are not limited to, the timely completion of new products, regulatory approvals for new products, the company's ability to realize value from its investment in Immtech International, the risk of new and better technologies, risks relating to international markets, as well as general conditions and competition in the company's markets. Other risks are set forth in CSI's reports and documents filed from time to time with the Securities and Exchange Commission.

                           (TABLE ATTACHED)

                        CRITICARE SYSTEMS, INC.
                     CONSOLIDATED INCOME STATEMENT
                              (UNAUDITED)

                                         TWELVE MONTHS ENDED JUNE 30,
                                             2000            1999
                                             ----            ----
NET SALES                                 $ 27,154,236   $ 28,512,507
COST OF GOODS SOLD                          16,462,477     15,528,314
     GROSS PROFIT                           10,691,759     12,984,193

OPERATING EXPENSES                          13,209,307     16,871,981

NON-OPERATING (INCOME) EXPENSE              (2,331,160)       500,383

     INCOME (LOSS) BEFORE INCOME TAXES        (186,388)    (4,388,171)

INCOME TAX PROVISION (BENEFIT)                       -              -

     NET INCOME (LOSS)                      $ (186,388)  $ (4,388,171)

EARNINGS PER SHARE - BASIC                     $ (0.02)       $ (0.51)
EARNINGS PER SHARE - DILUTED                   $ (0.02)       $ (0.51)

AVERAGE SHARES OUTSTANDING - BASIC           8,694,918      8,581,863
AVERAGE SHARES OUTSTANDING - DILUTED         8,694,918      8,581,863