CHAD Therapeutics Announces Mailing of Definitive Proxy Regarding Proposed Sale of Its Oxygen Business

  
    
  
  
    
      CHAD Therapeutics, Inc. (AMEX:CTU) announced today that it has 
      commenced mailing its definitive proxy statement to shareholders for 
      approval of its proposed sale of assets related to its oxygen conserving 
      business to Inovo, Inc., a privately held manufacturer of oxygen 
      regulators and conservers based in Naples, Florida, pursuant to an asset 
      purchase agreement dated November 16, 2007. The Company has scheduled a 
      special meeting of shareholders for Thursday, January 31, 2008, at 10:00 
      a.m. PST at CHAD Therapeutics, Inc, 21622 Plummer Street, Chatsworth, 
      CA, 91311. Shareholders of record as of the close of business on 
      December 24, 2007, will be entitled to vote at the meeting.
    
    
      The Company's Board of Directors has unanimously determined that the 
      proposed asset sale is in the best interests of the Company and its 
      shareholders and recommends that shareholders vote "FOR" the proposed 
      sale.
    
    
      Shareholders are encouraged to read the Company's definitive proxy 
      materials in their entirety. The proxy materials, which were mailed on 
      or about December 28, 2007, provide, among other things, a detailed 
      discussion of the process that led to the proposed asset sale, the 
      reasons behind the Board of Directors' unanimous recommendation and the 
      risks involved with the sale. Additional copies of the proxy statement 
      are available without charge from CHAD and also may be obtained for free 
      from the SEC's website at www.sec.gov. 
      Stockholders who have questions about the asset sale or need assistance 
      in submitting their proxy or voting their shares should contact the 
      Company's proxy solicitor, Morrow & Co., LLC, toll free at 
      1-800-662-5200.
    
    
      Earl Yager, CHAD's President and CEO said, "Approval of the asset 
      sale is critical to CHAD's future. Because failure to vote will 
      have the same effect as a vote against approving the transaction, we 
      urge shareholders to exercise their rights by voting their shares as 
      soon as possible after they receive and review the proxy statement."
    
    
      About CHAD Therapeutics
    
    
      CHAD Therapeutics, Inc. develops, manufactures and markets respiratory 
      care devices designed to improve the efficiency of oxygen delivery 
      systems for home health care and hospital treatment of patients 
      suffering from pulmonary diseases. For more information, visit www.CHADtherapeutics.com.
    
    
      Safe Harbor Statements under the Private Securities Litigation 
      Reform Act of 1995.
    
    
      The foregoing statements regarding prospects for future earnings and 
      revenues, future sales trends and the introduction of products under 
      development are forward-looking statements that involve certain risks 
      and uncertainties. A number of important factors could cause 
      actual results to differ materially from those contemplated by such 
      forward-looking statements. These include the loss of one or more 
      major customers, increased competition, the introduction of new products 
      with perceived competitive advantages over the Company's products, 
      changes or proposed changes in health care reimbursement which affect 
      home care providers and CHAD's ability to anticipate and respond to 
      technological and economic changes in the home oxygen market. Moreover, 
      the success of the Company's products and products under development 
      will depend on their efficacy, reliability and the health care 
      community's perception of the products' capabilities and benefits, the 
      degree of acceptance the products achieve among homecare providers and, 
      with respect to products under development, obtaining timely regulatory 
      approval. Additional factors that could cause actual results to 
      differ materially from those contemplated in this press release can be 
      found in the Company's annual and quarterly reports filed with the 
      Securities and Exchange Commission under the caption "Outlook: Issues 
      and Risks."