Criticare Systems, Inc. Reports Fiscal 2007 Year End and Fourth Quarter Results.

MILWAUKEE -- CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems Inc. today announced financial results for the fiscal 2007 year ended June 30, 2007 and the quarterly conference call details.

For the fiscal year ended June 30, 2007, the company had net sales of $31,431,810 and net income of $348,027 as compared to net sales of $31,350,919 and net income of $212,118 in fiscal 2006. Operating expenses for fiscal 2007 were $11,817,698 as compared to $12,490,055 for fiscal 2006, a decrease of $672,357. This decrease occurred in spite of the $451,564 of expenses incurred during the year in connection with the two consent solicitation actions initiated by BlueLine Partners and the subsequent settlement of those actions in the third quarter.

Net sales for the three months ended June 30, 2007 of $7,640,927 increased 7.7% from $7,095,962 for the same period in fiscal 2006. Net loss for the fourth quarter fiscal 2007 was $(365,709) compared to $(524,220) for the same period in fiscal 2006. The Company's backlog on June 30, 2007 was $4,789,244, which included the order received from the ministry of health of the Republic of Iraq totaling $2,222,700.

During fiscal 2007, the Company focused on the balance sheet fundamentals as cash and equivalents increased 22.2 % from $3,793,781 as of June 30, 2006 to $4,635,823 as of June 30, 2007. Additionally, inventories decreased 13.6% from $9,464,037 to $8,177,523, accounts receivable decreased 7.1% from $6,446,637 to $5,991,999 and accounts payable decreased 29.2% from $5,408,746 to $3,826,834. The company continues to operate with no long-term debt and has an unused line of credit of $2,000,000.

Criticare will hold a quarterly conference call on Tuesday, October 2, 2007 at 10:00 am central standard time to discuss the year end results of fiscal 2007. The call can be accessed by dialing 1-877-407-0782.

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.

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