Criticare Systems, Inc. Announces a New OEM Agreement for Its Respiratory Gas Monitoring System.

MILWAUKEE -- CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems Inc. today announced it has entered into an OEM agreement for its proprietary Respiratory Gas Monitoring system with Fukuda Denshi, a world leader in Cardiology instrumentation, Patient monitoring and Ultrasound technologies. Fukuda Denshi is headquartered in Japan with sales and service centers in China, the UK and the United States. Worldwide sales in 2004 were $688 million with over 2,000 employees. Fukuda Denshi previously utilized a competitive respiratory gas monitoring product, now replacing it with the Criticare system.

Criticare Systems President Emil H. Soika stated, "We are very pleased to have entered into an OEM agreement with Fukuda Denshi, a global leader in medical instrumentation. This is the result of rigorous laboratory, field work and technology exchange, carried out over this past year. The Criticare system was required to meet very exacting performance and quality standards in order to qualify for incorporation within the Fukuda product line. We are very confident in the potential of this agreement, and are looking forward to a long and rewarding relationship."

Criticare (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 Criticare's reports and documents filed from time to time with the Securities and Exchange Commission.