CHAD Therapeutics Shareholders Approve Sale of Company's Oxygen Business to INOVO

  
    
  
  
    
      Following a special meeting of shareholders held today, CHAD 
      Therapeutics, Inc. (AMEX:CTU) announced that its shareholders have 
      approved the proposed sale for approximately $5.25 million in cash of 
      the assets related to CHAD's 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 transaction, which is not subject to regulatory 
      approvals, was approved by more than 70% of the issued and outstanding 
      shares. Over 99% of the shares represented at the Special Meeting were 
      voted in favor of the proposal. The transaction is expected to close 
      February 15, 2008.
    
    
      Earl Yager, CHAD's President and CEO, said, "We intend to focus our 
      future efforts on the sleep disorder market. We believe that our sleep 
      products offer unique features that can improve the diagnosis and 
      treatment of 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 products in an advanced stage of 
      development and a roadmap of additional product development 
      opportunities based on our patented technology, we believe we have the 
      opportunity to build CHAD's position in this large and growing industry. 
      In addition, we will continue to actively pursue the sale of our 
      trans-filling assets."
    
    
      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."