Criticare Systems, Inc. Announces Receipt of FDA Approval to Market a Newly Developed Cardiac Monitor.

MILWAUKEE -- CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems, Inc. (CSI) today announced that on Wednesday September 29, the company received notification from the FDA that it has been granted approval to market a Cardiac Monitor with Magnetic Resonance compatibility. This product effort underlines the Company's strategy to participate in highly technical niche markets with significant growth potential. Additionally, it represents a planned departure from traditional patient monitoring products sold into commodity environments. Market introduction of the new system will take place during the current fiscal year, which began on July 1, 2004.

As previously announced, the Criticare management team, together with its board of directors, are focused on increasing the critical mass of the company to provide greater liquidity and shareholder value. To that end, a number of synergistic opportunities have been identified and are being actively pursued.

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.