Criticare Systems, Inc. -CSI- Will File for 10-K Extension.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--Oct. 1, 2002

CRITICARE SYSTEMS, INC. (NASDAQ-NMS: CXIM) announced today that it will file with the Securities and Exchange Commission later today a notification of late filing of its Annual Report on Form 10-K for fiscal 2002. This will extend the Form 10-K filing due date to October 15, allowing time to complete all required disclosures in the document. CSI believes that its financial statements are essentially complete consistent with the earnings release issued on September 10, 2002, but management needs additional time to complete all of the required disclosures in the Form 10-K. Management believes that a delay in filing the Form 10-K is prudent considering its responsibilities under the Sarbanes-Oxley Act.

CSI (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.

Certain statements contained in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "may," "planned," "potential," "should," "will," and "would." Such forward-looking statements are inherently subject to known and unknown risks and uncertainties. These risks and uncertainties include, but are not limited to, general economic conditions, demand for CSI's products, costs of operations, the development of new products, the reliance on single sources of supply for certain components in CSI's products, government regulation, health care cost containment programs, the effectiveness of CSI's programs to manage working capital and reduce costs, competition in CSI's markets, compliance with product safety regulations and product liability and product recall risks, risks relating to international sales and compliance with export regulations, unanticipated difficulties in outsourcing the manufacturing of the majority of its products to foreign manufacturers and risks related to foreign manufacturing, including economic and political instability, trade and foreign tax laws, production delays and cost overruns and quality control, and CSI's ability to reduce costs by eliminating excess capacity at its principal facility. Such uncertainties and other operational matters are discussed further in CSI's quarterly and annual filings with the Securities and Exchange Commission. CSI undertakes no obligation to make any revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances occurring after the date of this release.