**EXHIBIT
      99.1**




Criticare
      Systems, Inc.


20925
      Crossroads Circle


Waukesha,
      WI 53186-4054




Mailing
      Address:


P.O.
      Box
      26556


Milwaukee,
      WI 53226




Tel: 262.798.8282


Fax:262.798.8290


******NEWS
      RELEASE**







FOR
        IMMEDIATE RELEASE
 
 *Contact:
        Emil Soika, President and CEO-Criticare (262) 798-8282*
 
 
 ***Criticare
        Systems, Inc. Reports Strong Revenue Growth for First Quarter of Fiscal
        2007***
 
 MILWAUKEE--(BUSINESS
        WIRE)—October 19, 2006--CRITICARE SYSTEMS, INC. (AMEX: CMD - News ).
        Criticare Systems Inc. today announced its unaudited first quarter revenue
        for
        fiscal 2007.
 
 The
        company recorded revenue of approximately $8.1 million compared to $7.6 million
        for the comparable period in fiscal 2006. Revenue for the fourth quarter
        of
        fiscal 2006 was $7.1 million. Sales were particularly strong in Criticare’s
        domestic initiatives as well as efforts in Latin America. A major success
        was
        seen with the company’s new Acute Care monitoring line and the nGenuity, which
        was introduced this past May. This product line offers many innovative features,
        at a very attractive acquisition cost, raising the bar for an economic solution.
 
 Thanks
        in
        part to the introductory relationship with Kodak Dental, Criticare experienced
        record sales during the annual Oral and Maxillofacial Surgery convention,
        held
        on October 5, 6 and 7 at the San Diego convention center. Traditionally,
        this
        has been Criticares most productive convention, both in terms of orders taken
        during the convention and in later residual sales.
 
 “Strong
        revenue growth in our first quarter of fiscal 2007, on the heels of our double
        digit revenue growth for fiscal 2006, validates the continued successful
        implementation of our business strategy,” said Emil Soika, the company’s
        President and Chief Executive Officer.
 
 
 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.
 
  
  
 The
        Company filed a definitive consent revocation statement with the SEC on October
        11, 2006, in connection with the consent solicitation begun by BlueLine Partners
        L.L.C. and its affiliates. INVESTORS ARE URGED TO READ THE DEFINITIVE CONSENT
        REVOCATION STATEMENT AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL
        FILE
        WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Security holders
        will be able to obtain a free copy of the definitive consent revocation
        statement and other related documents filed by the Company at the SEC’s website
        at www.sec.gov. The Company’s definitive consent revocation statement and other
        related documents may also be obtained from the Company free of charge by
        contacting Joel Knudson, Criticare Systems, Inc., 20925 Crossroads Circle,
        Suite
        100, Waukesha, WI 53186, Tel. (262) 798-5335.
  Information
        regarding the identity of the persons who under SEC rules may be deemed to
        be
        participants in the solicitation by the Company’s of its stockholders in
        connection with this consent solicitation, and the participants’ interests in
        the solicitation, are set forth in the Company’s definitive consent revocation
        statement.
  **If
        you have any questions or need any information concerning this solicitation
        and
        our consent revocation, please contact: The Altman Group, toll free at (800)
        283-3192.**