Critical Therapeutics, Inc. (Nasdaq CTRX) today announced it has entered into definitive agreements with institutional investors to sell 7,455,731 shares of common stock and warrants to purchase 3,727,865 shares of common stock for an aggregate purchase price of $20 million. The warrants to purchase common stock have an exercise price of $2.62 per share and will be exercisable at any time on or before October 26, 2011.

The Company expects that the net proceeds of the offering will be approximately $18.5 million after deducting the placement agent's fees and all estimated offering expenses that are payable by the Company, excluding the proceeds, if any, from the exercise of the warrants issued in the offering. The Company currently intends to use these proceeds to fund its efforts to obtain U.S. Food and Drug Administration approval for, and to prepare for commercial launch of its controlled-release formulation of zileuton if approved, to fund development of the intravenous formulation of zileuton and for other general corporate purposes.

In connection with this offering, on October 26, 2006, the Company entered into a placement agent agreement with Lazard Capital Markets LLC, pursuant to which it agreed to act as the Company's placement agent and the Company agreed to pay a fee of $1.2 million upon the closing of the offering. Copies of the final prospectus may be obtained from Critical Therapeutics, Inc., 60 Westview Street, Lexington, Massachusetts 02421, Attn: Vice President, Investor & Media Relations or by contacting Lazard Capital Markets LLC at 30 Rockefeller Plaza, 60th floor, New York, NY 10020.

The Company has filed a shelf registration statement relating to these securities, which the Securities and Exchange Commission has declared effective.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company and these securities cannot be sold in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

About Critical Therapeutics

Critical Therapeutics, Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of products for respiratory, inflammatory and critical care diseases. The Company owns worldwide rights to the asthma drug ZYFLO® (zileuton tablets), as well as the controlled-release and intravenous formulations of zileuton. ZYFLO is the only 5-lipoxygenase inhibitor approved for marketing by the U.S. Food and Drug Administration.