CHAD Therapeutics Announces FDA Clearance of New Product.

CHATSWORTH, Calif.--(BUSINESS WIRE)--March 27, 2001

CHAD Therapeutics Inc. (AMEX:CTU), producer and distributor of oxygen conserving devices and oxygen systems used by pulmonary patients who need supplemental oxygen, today announced clearance by the Food and Drug Administration (FDA) to market its new OXYMATIC(R) 401A and 411A electronic oxygen conservers.

The Model 401A and 411A conservers are new lightweight additions to the OXYMATIC 400 series introduced in 2000.

Thomas E. Jones, Chief Executive Officer, said today, "These new conservers are the latest addition to CHAD's growing family of oxygen conserving devices and now provide an even wider choice for homecare providers and their patients. The OXYMATIC 401A and 411A conservers offer the same features found in the OXYMATIC 401 and 411 conservers with a built-in regulator made with an aluminum body and brass components, which has passed both the CGA and proposed ASTM safety tests. This provides a high level of safety in a lightweight package, which weighs 34% less than the all brass models. Combined with the choice between the alternate breath technology of the Model 401 and 401A conservers and the every breath technology of the 411 and 411A conservers, CHAD continues to provide homecare suppliers and their patients with the most extensive choice in conservers to suit individual needs and preferences. Other features found in all of the 400 series conservers include expanded flow rates to six liters per minute and increased shot sizes to service a wider segment of the home oxygen patient population, the ability to use a standard cannula and a continuous flow bypass switch. In addition, all 400 series conservers provide superior oxygen conservation with an average 5:1 savings."

Jones also stated, "The introduction of the OXYMATIC 401A and 411A conservers continues our progress in the expansion of CHAD's line of oxygen conservers. As recent announcements have indicated, we have begun to recapture market share in the conserver field and we believe these new products will enhance that opportunity. We also continue with other projects designed to further enhance our position in this area and further establish Chad's position as a technological leader in the development of home oxygen products."

Jones indicated CHAD currently plans to begin initial shipments of the OXYMATIC 401A and 411A conservers in the last week of March 2001.

The foregoing statements regarding the OXYMATIC 401A and 411A conservers are forward-looking statements that involve certain risks and uncertainties. The success of the OXYMATIC 401A and 411A conservers will depend on the health care community's perception of its capabilities and benefits and the degree of acceptance it achieves among homecare providers.