Exhibit 99.1

		21622 Plummer Street
		Chatsworth, CA 91311
		Toll Free: 800.423.8870
THERAPEUTICS		Phone: 818.882.0883
Innovative Respiratory Solutions	FOR IMMEDIATE RELEASE	Main Fax: 818.882.1809
Company Contact:		Investor Contact:
Earl L. Yager		Neil Berkman Associates
President and CEO		(310) 826 - 5051
www.CHADtherapeutics.com		info@BerkmanAssociates.com

CHAD Therapeutics Reports
Fiscal 2006 Third Quarter and Nine Month Financial Results

     CHATSWORTH, California, February 14, 2006 . . . CHAD Therapeutics, Inc. (ASE:CTU) today reported financial results for the third quarter and first nine months of fiscal 2006.

Evaluation of Strategic Opportunities

     As previously reported, CHAD has been in discussions with several parties concerning the distribution of both the Company’s TOTAL O₂7 home oxygen filling system and the products it is developing for the sleep disorder market. During the course of these discussions, the Board of Directors decided to broaden the scope of its consideration of various strategic alternatives for the Company, and has engaged an investment banking firm of to assist the Board in evaluating strategic opportunities and considering alternatives to maximize value for CHAD’s shareholders. This process continues. Given the nature of the process, the Company is unable to provide further comment at this time. CHAD plans to report publicly at such time as the evaluation of strategic opportunities is completed and its impact on CHAD’s business is assessed.

Third Quarter and Nine-Month Results

     For the three months ended December 31, 2005, revenue declined to $5,907,000 from $6,444,000 for the third quarter of fiscal 2005. Net earnings for the third quarter of fiscal 2006 were $39,000, or $0.00 per diluted share, as compared to $505,000, or $0.05 per diluted share, for the third quarter of fiscal 2005.

     For the nine months ended December 31, 2005, revenue declined to $17,177,000 from $18,852,000 for the same period last year. The net loss for the first nine months of fiscal 2006 was $213,000, or $0.02 per diluted share. This compares to net earnings for the first nine months of fiscal 2005 of $1,222,000, or $0.12 per diluted share.

     Sales of oxygen conservers to domestic customers declined 30% during the first nine months of fiscal 2006 compared to the prior year, reflecting pricing pressure and the reduction in sales to a major customer which have been previously reported. During the same period, international conserver sales increased 312%. Sales of CHAD’s proprietary TOTAL O₂ home oxygen filing system declined 2% during the first nine months of fiscal 2006 compared to the first nine months of fiscal 2005, primarily because a large customer deferred purchases during the third quarter of fiscal 2006. The customer has now resumed purchasing TOTAL O₂ systems.

     As previously reported, a major university sleep clinic has agreed to evaluate CHAD’s initial sleep products. Certain tests of CHAD’s diagnostic devices have been completed, and the university has expressed interest in expanding its work to include an evaluation of the Company’s therapeutic technology.

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CHAD, OXYMATIC, OXYMIZER ISO 13485, OXYLITE, and TOTAL O₂ are Registered Trademarks of Chad Therapeutics, Inc.
ISO 13485 Certified Company
WWW.CHADTHERAPEUTICS.COM

CHAD Therapeutics Reports Fiscal 2006 Third Quarter and Nine Month Financial Results
February 14, 2006
Page Two

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 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.”

(tables attached)

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CHAD THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

	Nine Months Ended					Three Months Ended
	December 31,					December 31,
	2005			2004		2005		2004
Net sales	$	17,177,000		$	18,852,000	$	5,907,000	$	6,444,000
Cost of sales		11,194,000			11,116,000		3,806,000		3,741,000
Gross profit		5,983,000			7,736,000		2,101,000		2,703,000
Selling, general and administrative		5,101,000			5,306,000		1,558,000		1,858,000
Research and development		1,202,000			1,207,000		435,000		380,000
Total costs and expenses		6,303,000			6,513,000		1,993,000		2,238,000
Operating income (loss)		(320,000	)		1,223,000		108,000		465,000
Other income, net		23,000			28,000		4,000		14,000
Earnings (loss) before income taxes		(297,000	)		1,251,000		112,000		479,000
Income tax expense (benefit)		(84,000	)		29,000		73,000		(26,000	)
Net earnings (loss)	$	(213,000	)	$	1,222,000	$	39,000	$	505,000
Earnings (loss) per share:
Basic	$	(0.02	)	$	0.12	$	0.00	$	0.05
Diluted	$	(0.02	)	$	0.12	$	0.00	$	0.05
Weighted shares outstanding:
Basic		10,142,000			10,119,000		10,151,000		10,124,000
Diluted		10,142,000			10,622,000		10,569,000		10,647,000

CHAD THEREAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(Unaudited)

	December 31,
	2005			2004
Assets
Current assets:
Cash	$	820,000		$	2,021,000
Accounts receivable, net		3,202,000			3,628,000
Income taxes refundable		402,000			—
Inventories, net		7,356,000			7,357,000
Prepaid expenses and other assets		184,000			349,000
Deferred income taxes		501,000			691,000
Total current assets		12,465,000			14,046,000
Property, plant and equipment, net		1,056,000			1,140,000
Intangible assets, net		877,000			700,000
Deferred income taxes		376,000			—
Other assets		74,000			87,000
Total Assets	$	14,848,000		$	15,973,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	862,000		$	1,839,000
Accrued expenses		1,142,000			1,290,000
Income taxes payable		—			418,000
Total current liabilities		2,004,000			3,547,000
Other long-term liabilities		5,000			—
Total liabilities		2,009,000			3,547,000
Shareholders’ equity:
Common shares, $.01 par value, authorized 40,000,000
shares, 10,158,000 and 10,022,000 issued and outstanding		13,397,000			13,360,000
Retained earnings (accumulated deficit)		(558,000	)		(934,000	)
Net shareholders’ equity		12,839,000			12,426,000
Total Liabilities and Shareholders’ Equity	$	14,848,000		$	15,973,000