Criticare Systems, Inc. Comments on Current Business Status.

MILWAUKEE -- CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems, Inc. today comments on its general business trends with respect to a drop in share price this past 2 weeks. The company continues to experience overall growth, with the expectation of ending the fiscal year with the highest revenue line in the Company's history. Criticare's acute care sales organization, which inherited the customer base from a former original equipment manufacturer ("OEM") partner, will exceed the largest year Criticare experienced under the OEM agreement. This is being accomplished, despite the fact that the acute care distribution network is in the first year of existence.

Criticare's oral surgery business is ahead of last year and is currently managing the launch of a new product offering with initial sales significantly outpacing forecasts. OEM sales have also exceeded the previous year, with MRI and Respiratory Gas market efforts still in their infancy, having significant growth potential. Criticare's international business, as was stated in the May 12, 2006 conference call, is currently being revamped, with the aim at improving their margin contribution. The sales backlog in international is higher than previous years, which due to the revamping, reflects a tightening of the company's credit policies.

The company continues efforts to add new OEM partners, has a strong portfolio of new products under development, and operates in a debt free environment.

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. Criticare does not believe its backlog of any date is indicative of its future sales. Other risks are set forth in Criticare's reports and documents filed from time to time with the Securities and Exchange Commission.