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(CHAD LOGO)
    
    
    
    Exhibit 99.121622 Plummer StreetTHERAPEUTICS
    
    
    
    Chatsworth, CA 91311Innovative Respiratory Solutions
    
    
    
    Toll Free: 800.423.8870Phone: 818.882.0883FOR IMMEDIATE RELEASE
    
    Main Fax: 818.882.1809Company Contact:
    
    
    
    Investor Contact:Earl L. Yager
    
    
    
    Neil Berkman AssociatesPresident and CEO
    
    
    
    (310) 277  5162www.CHADtherapeutics.com
    
    
    
    info@BerkmanAssociates.com
 CHAD Therapeutics Reports
Fiscal 2006 Second Quarter and First Half Financial Results
 Announces Engagement Of Investment Bank  To Assist Management In Evaluating Alternatives To Maximize Shareholder Value
 CHATSWORTH, California, CHAD Therapeutics, Inc.
(ASE:CTU)
 2
 Second Quarter and First Half Results
   Conserver Product Update
   (more)
 CHAD, OXYMATIC, OXYMIZER, OXYLITE, and TOTAL O2 are Registered Trademarks of Chad Therapeutics, Inc.  ISO 13485 Certified Company




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CHAD Therapeutics Reports Fiscal 2006 Second Quarter Financial Results
 TOTAL O 2
 2
 2 2
 Sleep Disorder Product Update
  Earnings Guidance
 2
 Conference Call
 Investor Relations www.CHADTherapeutics.com
 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
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 O2 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.




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CHAD THERAPEUTICS, INC.
 Six Months Ended
    
    
    Three Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Net sales
    
    $
    11,270,000
    
    
    $
    12,408,000
    
    
    $
    5,375,000
    
    
    $
    6,309,000Cost of sales
    
    
    7,388,000
    
    
    
    7,375,000
    
    
    
    3,594,000
    
    
    
    3,696,000Gross profit
    
    
    3,882,000
    
    
    
    5,033,000
    
    
    
    1,781,000
    
    
    
    2,613,000Costs and expenses:Selling, general and administrative
    
    
    3,543,000
    
    
    
    3,448,000
    
    
    
    1,699,000
    
    
    
    1,712,000Research and development
    
    
    767,000
    
    
    
    827,000
    
    
    
    435,000
    
    
    
    417,000Total costs and expenses
    
    
    4,310,000
    
    
    
    4,275,000
    
    
    
    2,134,000
    
    
    
    2,129,000Operating income (loss)
    
    
    (428,000
    )
    
    
    758,000
    
    
    
    (353,000
    )
    
    
    484,000Other income, net
    
    
    19,000
    
    
    
    14,000
    
    
    
    13,000
    
    
    
    6,000Earnings (loss) before income taxes
    
    
    (409,000
    )
    
    
    772,000
    
    
    
    (340,000
    )
    
    
    490,000Income tax expense (benefit)
    
    
    (157,000
    )
    
    
    55,000
    
    
    
    (130,000
    )
    
    
    35,000Net earnings (loss)
    
    $
    (252,000
    )
    
    $
    717,000
    
    
    $
    (210,000
    )
    
    $
    455,000Earnings (loss) per share:Basic
    
    $
    (0.02
    )
    
    $
    0.07
    
    
    $
    (0.02
    )
    
    $
    0.04Diluted
    
    $
    (0.02
    )
    
    $
    0.07
    
    
    $
    (0.02
    )
    
    $
    0.04Weighted shares outstanding:Basic
    
    
    10,137,000
    
    
    
    10,116,000
    
    
    
    10,141,000
    
    
    
    10,122,000Diluted
    
    
    10,137,000
    
    
    
    10,609,000
    
    
    
    10,141,000
    
    
    
    10,598,000




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CHAD THEREAPEUTICS, INC.
 September 30,2005
    
    
    2004AssetsCurrent assets:Cash
    
    $
    434,000
    
    
    $
    3,007,000Accounts receivable, net
    
    
    3,013,000
    
    
    
    3,458,000Inventories, net
    
    
    8,118,000
    
    
    
    5,362,000Prepaid expenses and other assets
    
    
    472,000
    
    
    
    382,000Deferred income taxes
    
    
    518,000
    
    
    
    434,000Total current assets
    
    
    12,555,000
    
    
    
    12,643,000Property, plant and equipment, net
    
    
    1,124,000
    
    
    
    1,132,000Intangible assets, net
    
    
    863,000
    
    
    
    710,000Deferred income taxes
    
    
    568,000
    
    
    
    Other assets
    
    
    65,000
    
    
    
    54,000Total Assets
    
    $
    15,175,000
    
    
    $
    14,539,000Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    1,210,000
    
    
    $
    1,252,000Accrued expenses
    
    
    1,176,000
    
    
    
    1,151,000Income taxes payable
    
    
    
    
    
    
    228,000Total current liabilities
    
    
    2,386,000
    
    
    
    2,631,000Capital lease obligation, net of current portion
    
    
    7,000
    
    
    
    Total liabilities
    
    
    2,393,000
    
    
    
    2,631,000Shareholders equity:Common shares, $.01 par value, authorized
40,000,000 shares, 10,144,000 and
10,022,000 issued and outstanding
    
    
    13,379,000
    
    
    
    13,347,000Retained earnings (accumulated deficit)
    
    
    (597,000
    )
    
    
    (1,439,000
    )Net shareholders equity
    
    
    12,782,000
    
    
    
    11,908,000Total Liabilities and Shareholders Equity
    
    $
    15,175,000
    
    
    $
    14,539,000