Criticare Systems, Inc. Announces Contract with Philips Medical Systems.

Business Editors

MILWAUKEE--(BUSINESS WIRE)--April 1, 2004

CRITICARE SYSTEMS, INC. (AMEX:CMD) Criticare Systems, Inc. (CSI) today announced that it has entered into a contract with Philips Medical Systems to create a communications link between CSI's proprietary, stand-alone anesthesia monitoring system and Philips' patient monitors, via the Philips Open Vuelink Interface protocol.

Under the agreement, Philips provided CSI with appropriate software to enable a communications link between Philips' monitors and CSI's POET(TM) 8500Q stand-alone anesthesia system.

Emil Soika, CSI's President and Chief Executive Officer, said, "We are pleased to sign an agreement that will offer the anesthesiology market an opportunity to combine CSI's leading edge gas technology with Philips' extensive line of patient monitors."

CSI is recognized worldwide for its leadership in developing vital signs and gas analysis monitors for hospital, outpatient care, and alternate care settings. CSI's acclaimed Poet(R) systems offer technological innovation and cost-containment features. On an OEM basis, CSI provides 5-agent anesthesia, NIBP, and CO2 monitoring technology to leading corporations worldwide.

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.

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 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.