CHAD Therapeutics Reports Going Concern Qualification

  
    
  
  
    
      CHAD Therapeutics, Inc. (AMEX:CTU) today reported that its 
      independent registered accountants, Rose, Snyder & Jacobs, had qualified 
      their opinion on the Company's March 31, 2008, financial statements as 
      disclosed in the Company's Form 10-K filed with the Securities and 
      Exchange Commission on June 27, 2008. The qualification is based on 
      doubts about the Company's ability to continue as a going concern and 
      the need to raise additional financing to support the launch of the 
      products the Company is developing for the sleep disorder market, as 
      described in Note 1 to the above-mentioned financial statements.
    
    
      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."