Chad Restructures Sales Organization.

CHATSWORTH, Calif.--(BUSINESS WIRE)--Oct. 5, 1998--Chad Therapeutics Inc. (AMEX:CTU) Monday announced the restructuring of its sales organization and the termination of its strategic alliance with Salter Labs.

The termination with Salter was on mutually agreeable terms.

Thomas E. Jones, chief executive officer of Chad, said, "The alliance with Salter Labs was in part designed to evaluate the effectiveness of a combination field sales/manufacturers representative organization in selling Chad's products.

"In reviewing the results of the past three months, we have determined that this approach does have a positive impact on selling efforts, but that more direct communication is needed to more effectively guide the activities of the field sales representatives."

Jones continued: "We appreciate the efforts of Salter Labs during this period, but now feel it is in Chad's best interests to develop our own combination field sales/manufacturers representative organization to work in conjunction with our telephone sales force." "This will allow Chad to communicate directly in these sales efforts and to fully focus them on Chad's products. In that regard, we intend to select a proven executive to head this program."

Chad is a leading developer, manufacturer and distributor of oxygen-conserving devices and oxygen-delivery systems for home health-care patients who require supplemental oxygen.