Dormio Tech Division of CHAD Therapeutics Receives FDA Clearance to Market Its FloCHANNEL Sleep Diagnostic Device

  
    
  
  
    
      Dormio Tech, a division of CHAD Therapeutics, Inc. (AMEX:CTU), 
      announced today that it received 510(K) clearance from the FDA to market 
      the Company's proprietary FloCHANNEL® 
      Diagnostic System, Dormio's first product for the large and rapidly 
      growing sleep disorder market. CHAD currently expects to begin shipping 
      this new device and associated disposables by September.
    
    
      "With its patented features and unique capabilities, we believe 
      FloCHANNEL is a significant advance in the diagnosis of obstructive 
      sleep apnea and other sleep disorders, and may become an invaluable tool 
      in attended sleep laboratories," said President and CEO Earl Yager. 
      There are approximately 2,800 attended sleep labs in the United States.
    
    
      Dormio Tech's innovative FloCHANNEL is the only diagnostic device that 
      independently monitors left and right nasal airflow. This allows the 
      system to detect and measure nasal cycling (the periodic alternation in 
      nasal airflow resistance between the two nasal cavities), as well as 
      oral airflow and snoring, and provides constant baseline airflow 
      volumetric sleep scoring. The patented device connects easily to 
      standard sleep lab systems.
    
    
      About CHAD Therapeutics
    
    
      CHAD Therapeutics, Inc. develops and markets innovative products 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 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 DORMIO's ability to anticipate and 
      respond to technological and economic changes in the sleep 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 sleep labs and patients, 
      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."