CHAD Therapeutics Receives Letter From The American Stock Exchange Citing Non-Compliance With Certain Listing Requirements

  
    
  
  
    
      CHAD Therapeutics, Inc. (AMEX:CTU) today announced that on July 
      23, 2008, it received a letter from the American Stock Exchange ("AMEX") 
      stating that the Company was not in compliance with Section 1003 of the 
      AMEX Company Guide. Specifically, the Company is not in compliance with 
      Section 1003(a)(i) of the AMEX Company Guide with stockholders' equity 
      of less than $2,000,000 and losses from continuing operations and/or net 
      losses in two out of its three most recent fiscal years, Section 
      1003(a)(ii) of the AMEX Company Guide with stockholders' equity of less 
      than $4,000,000 and losses from continuing operations and/or net losses 
      in three out of its four most recent fiscal years, and Section 
      1003(a)(iv) of the AMEX Company Guide in that the Company has sustained 
      losses which are so substantial in relation to its overall operations or 
      its existing financial resources, or its financial condition has become 
      impaired so that it appears questionable, in the opinion of the 
      Exchange, as to whether the Company will be able to continue operations 
      and/or meet its obligations as they mature. Furthermore, over the last 
      six months the Company has had an average selling price of $0.32 per 
      share of common stock and, as of July 22, 2008, the closing price of the 
      Company's Common Stock was $0.16 per share. Therefore, in accordance 
      with section 1003(f)(v) of the AMEX Company Guide, the Exchange has 
      deemed it appropriate for the Company to effect a reverse stock split, 
      and if not effected within a reasonable amount of time, the Exchange may 
      consider suspending dealings in, or removing from the list, the 
      Company's common stock.
    
    
      The non-compliance by the Company with Section 1003 of the AMEX Company 
      Guide makes the Company's common stock subject to being delisted from 
      AMEX. The Company is required to submit an initial plan to AMEX by 
      August 25, 2008 advising AMEX of the actions that it intends to take to 
      bring the Company into compliance with the continued listing standards 
      set forth in the AMEX Company Guide by October 25, 2008. The Company is 
      currently considering its response to the Exchange and as of the date of 
      this press release, has not determined its definitive response to the 
      Exchange.
    
    
      About CHAD Therapeutics
    
    
      CHAD Therapeutics, Inc. develops medical devices for the sleep disorder 
      market. For more information, visit www.dormiotech.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."