CHAD Therapeutics Closes Sale of Transfilling Assets for $1.825 Million in Cash

  
    
  
  
    
      CHAD Therapeutics, Inc. (AMEX:CTU) announced today that it has 
      closed the sale of the assets related to its transfilling oxygen 
      business for $1.825 million in cash, pursuant to an asset purchase 
      agreement. As a result of the sale, CHAD will discontinue production and 
      sales of its transfilling oxygen products.
    
    
      Earl Yager, CHAD's President and CEO, said, "This transaction marks the 
      final step in our announced plan to exit the oxygen business and focus 
      our future efforts on the sleep disorder market. We believe our sleep 
      products offer unique features that can improve the diagnosis and 
      treatment of sleep disorders such as obstructive sleep apnea. We 
      recently filed an application with the FDA for clearance to begin 
      marketing the first of our sleep products. With additional proprietary 
      sleep products in an advanced stage of development and a well-defined 
      roadmap of additional product development opportunities based on our 
      patented technologies, we believe we have the opportunity to build 
      CHAD's position in this large and growing industry."
    
    
      About CHAD Therapeutics
    
    
      CHAD Therapeutics, Inc. develops, manufactures and markets products for 
      the sleep disorder market. 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 introduction of new 
      products with perceived competitive advantages over the Company's 
      products and CHAD's ability to anticipate and respond to technological 
      and economic changes in the sleep disorder 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 clinicians and patients and 
      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."