CTU Chad Therapeutics,

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."