CHAD Therapeutics Named 2006 Frost & Sullivan Product Line Strategy Leadership Award Winner

CHAD Therapeutics, Inc. (AMEX:CTU) announced today that
it has been named the 2006 Frost & Sullivan Product Line Strategy
Leadership Award winner for its excellence in the U.S. oxygen therapy
devices market.
   "We are proud to receive this prestigious award, which reflects
our total team effort to quality and service," said Earl Yager,
President and CEO. "Our product strategy recognizes that home care
providers are seeking ways to reduce monthly operating costs as a
primary strategy to deal with changes in the competitive landscape and
reduced Medicare reimbursement. We are dedicated to addressing these
requirements, while at the same time offering the industry's widest
range of advanced oxygen therapy products to improve the quality of
life for patients."
   Sheila Ewing, Frost & Sullivan research analyst, said, "CHAD
Therapeutics has responded to the changes in the U.S. oxygen therapy
devices market with complementary new products that position the
company for growth. CHAD Therapeutics' proprietary devices, including
its TOTAL O(2)(R) home oxygen filling system, LOTUS electronic oxygen
conserver and SAGE Oxygen Therapeutic Device, employ some of the most
revolutionary advances in technology in this industry to improve
patient care and provide cost-effective treatment options for home
care providers."
   The Frost & Sullivan Award for Oxygen Therapy Product Line
Strategy Leadership is presented each year to the company that has
demonstrated the most insight into customer needs and product demands.
The recipient company has optimized its product line by leveraging
products with the various price, performance and feature points
required by the market. To select the Award recipient, the analyst
team tracks all end-user requirements and market dynamics with the
industry. This process includes interviews with suppliers, end-users
and industry experts. The product lines are compared with customer
base demands, and the top-ranking supplier is then presented the
Award.

   About CHAD Therapeutics

   CHAD Therapeutics, Inc. is in the business of developing,
producing and marketing 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 potential loss of one of
our major customers upon whom we depend for a material portion of our
business, increased competition and continuing downward pressure on
prices for certain of our products, the potential 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, the terms of any distribution
agreement which may be negotiated with respect to our TOTAL O(2)
system or our sleep products, 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."