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Company Contact:  Earl L. Yager  President and CEO  www.CHADtherapeutics.com
 FOR IMMEDIATE RELEASE
 21622 Plummer Street  Chatsworth, CA 91311  Toll Free: 800.423.8870  Phone: 818.882.0883  Main Fax: 818.882.1809
 Investor Contact:  Neil Berkman Associates  (310) 826-5051  info@BerkmanAssociates.com
   CHAD Therapeutics Reports Third Quarter Results
 CHATSWORTH, California, CHAD Therapeutics, Inc. (ASE:CTU)
  Third Quarter Results
 Nine Month Results
 About CHAD Therapeutics  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.
   CHAD, OXYMATIC, OXYMIZER, OXYLITE, and TOTAL O2 are Registered Trademarks of Chad Therapeutics, Inc.  ISO 13485 Certified Company  WWW.CHADTHERAPEUTICS.COM




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CHAD THERAPEUTICS, INC.
 Three Months Ended
    
    
    Nine Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    2,929,000
    
    
    $
    4,307,000
    
    
    $
    10,108,000
    
    
    $
    14,766,000Cost of sales
    
    
    1,770,000
    
    
    
    3,248,000
    
    
    
    7,555,000
    
    
    
    10,276,000Gross profit
    
    
    1,159,000
    
    
    
    1,059,000
    
    
    
    2,553,000
    
    
    
    4,490,000Costs and expenses:Selling, general and administrative
    
    
    1,537,000
    
    
    
    1,421,000
    
    
    
    4,494,000
    
    
    
    4,805,000Research and development
    
    
    359,000
    
    
    
    396,000
    
    
    
    1,212,000
    
    
    
    1,053,000Total costs and expenses
    
    
    1,896,000
    
    
    
    1,817,000
    
    
    
    5,706,000
    
    
    
    5,858,000Operating (loss)
    
    
    (737,000
    )
    
    
    (758,000
    )
    
    
    (3,153,000
    )
    
    
    (1,368,000
    )Other income (expense), net
    
    
    (131,000
    )
    
    
    18,000
    
    
    
    (354,000
    )
    
    
    57,000Loss before income taxes
    
    
    (868,000
    )
    
    
    (740,000
    )
    
    
    (3,507,000
    )
    
    
    (1,311,000
    )Income tax expense (benefit)
    
    
    
    
    
    
    (305,000
    )
    
    
    4,000
    
    
    
    (453,000
    )Net loss
    
    $
    (868,000
    )
    
    $
    (435,000
    )
    
    $
    (3,511,000
    )
    
    $
    (858,000
    )Loss per share:Basic
    
    $
    (0.09
    )
    
    $
    (0.04
    )
    
    $
    (0.34
    )
    
    $
    (0.08
    )Diluted
    
    $
    (0.09
    )
    
    $
    (0.04
    )
    
    $
    (0.34
    )
    
    $
    (0.08
    )Weighted shares outstanding:Basic
    
    
    10,180,000
    
    
    
    10,169,000
    
    
    
    10,180,000
    
    
    
    10,169,000Diluted
    
    
    10,180,000
    
    
    
    10,169,000
    
    
    
    10,180,000
    
    
    
    10,169,000




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CHAD THERAPEUTICS, INC.
 December 31,2007
    
    
    2006AssetsCurrent assets:Cash
    
    $
    261,000
    
    
    $
    1,070,000Accounts receivable, net
    
    
    1,470,000
    
    
    
    2,239,000Income taxes refundable
    
    
    2,000
    
    
    
    300,000Inventories, net
    
    
    6,140,000
    
    
    
    6,768,000Prepaid expenses and other assets
    
    
    319,000
    
    
    
    292,000Deferred income taxes
    
    
    
    
    
    
    640,000Total current assets
    
    
    8,192,000
    
    
    
    11,309,000Property, plant and equipment, net
    
    
    611,000
    
    
    
    751,000Intangible assets, net
    
    
    1,071,000
    
    
    
    1,094,000Deferred income taxes
    
    
    
    
    
    
    796,000Other assets
    
    
    262,000
    
    
    
    46,000Total Assets
    
    $
    10,136,000
    
    
    $
    13,996,000Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    1,507,000
    
    
    $
    1,132,000Accrued expenses
    
    
    1,090,000
    
    
    
    1,260,000Revolving line of credit
    
    
    1,168,000
    
    
    
    Current portion of long-term debt
    
    
    292,000
    
    
    
    Total current liabilities
    
    
    4,057,000
    
    
    
    2,392,000Long-term debt
    
    
    390,000
    
    
    
    Total liabilities
    
    
    4,447,000
    
    
    
    2,392,000Shareholders equity:Common shares, .01 par value, authorized; 40,000,000
shares, 10,180,000 and 10,168,000 issued and outstanding
    
    
    13,632,000
    
    
    
    13,480,000Accumulated deficit
    
    
    (7,943,000
    )
    
    
    (1,876,000
    )Net shareholders equity
    
    
    5,689,000
    
    
    
    11,604,000Total Liabilities and Shareholders Equity
    
    $
    10,136,000
    
    
    $
    13,996,000