Criticare Systems, Inc. Reports Fiscal 2008 Second Quarter and Year To Date Results.

MILWAUKEE -- CRITICARE SYSTEMS, INC. (AMEX:CMD). Criticare Systems, Inc. today announced fiscal 2008 second quarter and year to date financial results for the period ended December 31, 2007.

The Company reported record quarterly net sales of $10,221,365 for the three months ended December 31, 2007, an increase of 20.8% compared to $8,462,740 for the same period in fiscal 2007. Income from operations for the second quarter of fiscal 2008 increased 294.8% to $953,018 compared to $241,419 for the same period in fiscal 2007. The Company also reported a 193.5% increase in net income to $1,029,241 for the second quarter of fiscal 2008 or $.08 per diluted share compared with net income of $350,733 or $.03 per diluted share for the same period fiscal 2007.

For the third straight year, the Company reported record net sales for the first six months of the fiscal year, as net sales of $19,359,091 for the six months ended December 31, 2007 increased 16.1% compared to $16,669,334 for the same period in fiscal 2007. Operating expenses for the six months ended December 31, 2007 increased $193,572 from same period in fiscal 2007, primarily driven by an increase in commissions earned due to the increased sales. Income from operations for the first six months of fiscal 2008 increased 156.9% to $1,458,332 compared to $567,606 for the same period in fiscal 2007. Net income for the six months ended December 31, 2007 rose 144.0% to $1,667,883 or $.13 per diluted share up from $683,609 or $.06 per diluted share for the same period fiscal 2007. The results for the second quarter and year to date demonstrate that the Company's focus on growing top line revenue, earnings and keeping expenses in check has provided the necessary leverage to grow the Company's earnings per share.

The Company's cash balance increased $2,426,612 to $6,373,909 from the December 31, 2006 balance of $3,947,297. The Company continues to maintain a long-term bank debt free balance sheet and is in compliance with the terms of an available $2,000,000 line of credit. The Company's backlog as of December 31, 2007 was $4,224,970 compared to $4,789,244 as of June 30, 2007.

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.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]