Exhibit
99.1




Contact:
                Daniel
      C. DunnChief
      Financial Officer314/771-2400
  
 
 Allied
Healthcare Products Reports Modest Profit for Quarter
 
 
 ST.
LOUIS, February 8, 2011–With its governmental markets still depressed, Allied Healthcare Products
(NASDAQ: AHPI) earned a modest profit in the second quarter of fiscal year 2011
and  improvement in its year-over-year performance.
  Net income for the quarter ending
December 31, was $117,000, or 1 cent per basic and diluted share, compared to
$22,000, or zero cents per share, for the previous year’s quarter. For the first
two quarters of the fiscal year, net income was about $29,000, or zero cents per
basic and diluted share, compared to a loss of $723,000, or a negative 9 cents
per share, for the previous year’s first two quarters. Allied earnings in the
previous year were affected by a non-cash charge of $609,000 for a grant of
stock options.
  Sales for the second quarter totaled
about $11.4 million, slightly below the mark set in the previous year’s quarter.
For the first six months of the fiscal year, sales increased by about $605,000,
or 2.7 percent, to about $23.3 million.
  Unanticipated costs of about $280,000
associated with the introduction of a new product depressed results for the
quarter. Most of those costs were a one-time event.
  In the first half of the fiscal year,
prices for commodity materials such as brass and steel increased 8 percent.
Still, Allied managed to hold overall purchased material costs to an increase of
less than 1 percent. Also, the company reduced selling, general and
administrative (SG&A) costs by about 10 percent for the quarter, the second
consecutive quarter in which significant SG&A reductions were
achieved.
  
  “Our cost structure is strong, so we
are well-positioned to take advantage of an upturn in the market,” said Earl
Refsland, Allied president and chief executive officer.
  Allied Healthcare Products manufactures
a variety of respiratory products used in the healthcare industry in a range of
hospital and alternate care settings including sub-acute facilities, home
healthcare and emergency medical care. Allied product lines include respiratory
care products, medical gas equipment and emergency medical products. Allied
products are marketed to hospitals, hospital equipment dealers, hospital
construction contractors, home healthcare dealers and emergency medical product
dealers.
   “SAFE
HARBOR” STATEMENT: Statements contained in this release that are not historical
facts or information are “forward-looking statements.”  Words such as
“believe,” “expect,” “intend,” “will,” “should,” and other expressions that
indicate future events and trends identify such forward-looking statements.
These forward-looking statements involve risks and uncertainties that could
cause the outcome and future results of operations and financial condition to be
materially different than stated or anticipated based on the forward-looking
statements. Such risks and uncertainties include both general economic risks and
uncertainties, risks and uncertainties affecting the demand for and economic
factors affecting the delivery of health care services, and specific matters
which relate directly to the Company’s operations and properties as discussed in
its periodic filings with the Securities and Exchange Commission. The Company
cautions that any forward-looking statement contained in this report reflects
only the belief of the Company or its management at the time the statement was
made. Although the Company believes such forward-looking statements are based
upon reasonable assumptions, such assumptions may ultimately prove inaccurate or
incomplete. The Company undertakes no obligation to update any forward-looking
statement to reflect events or circumstances after the date on which the
statement was made.
 
 
 
 ##
 
 
 
 ALLIED
      HEALTHCARE PRODUCTS, INC.CONSOLIDATED
      STATEMENT OF OPERATIONS(UNAUDITED)
 Three
      months ended,
                          
                          
                          Six
      months ended,December
      31,
                          
                          
                          December
      31,2010
                          
                          
                          2009
                          
                          
                          2010
                          
                          
                          2009Net
      sales
                          
                          $
                          11,402,681
                          
                          
                          $
                          11,414,908
                          
                          
                          $
                          23,343,414
                          
                          
                          $
                          22,738,584Cost
      of sales
                          
                          
                          8,592,712
                          
                          
                          
                          8,470,169
                          
                          
                          
                          17,982,718
                          
                          
                          
                          17,390,969Gross
      profit
                          
                          
                          2,809,969
                          
                          
                          
                          2,944,739
                          
                          
                          
                          5,360,696
                          
                          
                          
                          5,347,615Selling
      General and administrative expenses
                          
                          
                          2,600,734
                          
                          
                          
                          2,900,113
                          
                          
                          
                          5,285,310
                          
                          
                          
                          6,491,891Income
      (loss) from operations
                          
                          
                          209,235
                          
                          
                          
                          44,626
                          
                          
                          
                          75,386
                          
                          
                          
                          (1,144,276
                          )Interest
      income
                          
                          
                          (8,067
                          )
                          
                          
                          (464
                          )
                          
                          
                          (15,542
                          )
                          
                          
                          (1,448
                          )Interest
      expense
                          
                          
                          -
                          
                          
                          
                          162
                          
                          
                          
                          66
                          
                          
                          
                          2,574Other,
      net
                          
                          
                          28,410
                          
                          
                          
                          11,785
                          
                          
                          
                          43,509
                          
                          
                          
                          22,79820,343
                          
                          
                          
                          11,483
                          
                          
                          
                          28,033
                          
                          
                          
                          23,924Income
      (loss) before provision for(benefit
      from) income taxes
                          
                          
                          188,892
                          
                          
                          
                          33,143
                          
                          
                          
                          47,353
                          
                          
                          
                          (1,168,200
                          )Provision
      for (benefit from) income taxes
                          
                          
                          71,779
                          
                          
                          
                          11,573
                          
                          
                          
                          17,994
                          
                          
                          
                          (444,832
                          )Net
      income (loss)
                          
                          $
                          117,113
                          
                          
                          $
                          21,570
                          
                          
                          $
                          29,359
                          
                          
                          $
                          (723,368
                          )Net
      income (loss) per share - Basic
                          
                          $
                          0.01
                          
                          
                          $
                          0.00
                          
                          
                          $
                          0.00
                          
                          
                          $
                          (0.09
                          )Net
      income (loss) per share - Diluted
                          
                          $
                          0.01
                          
                          
                          $
                          0.00
                          
                          
                          $
                          0.00
                          
                          
                          $
                          (0.09
                          )Weighted
      average common shares outstanding - Basic
                          
                          
                          8,098,366
                          
                          
                          
                          8,092,734
                          
                          
                          
                          8,095,876
                          
                          
                          
                          8,040,528Weighted
      average common shares outstanding - Diluted
                          
                          
                          8,119,386
                          
                          
                          
                          8,217,103
                          
                          
                          
                          8,114,724
                          
                          
                          
                          8,040,528
 
 
 
 ALLIED
      HEALTHCARE PRODUCTS, INC.CONSOLIDATED
      BALANCE SHEET(UNAUDITED)
 December
      31, 2010
                                                    
                                                    
                                                    June
      30, 2010ASSETSCurrent
      assets:Cash
      and cash equivalents
                                                    
                                                    $
                                                    6,239,426
                                                    
                                                    
                                                    $
                                                    5,263,324Accounts
      receivable, net of allowancesof
      $300,000
                                                    
                                                    
                                                    4,224,975
                                                    
                                                    
                                                    
                                                    5,418,253Inventories,
      net
                                                    
                                                    
                                                    11,423,933
                                                    
                                                    
                                                    
                                                    11,155,456Income
      tax receivable
                                                    
                                                    
                                                    811,347
                                                    
                                                    
                                                    
                                                    877,665Other
      current assets
                                                    
                                                    
                                                    237,635
                                                    
                                                    
                                                    
                                                    221,840Total
      current assets
                                                    
                                                    
                                                    22,937,316
                                                    
                                                    
                                                    
                                                    22,936,538Property,
      plant and equipment, net
                                                    
                                                    
                                                    9,015,107
                                                    
                                                    
                                                    
                                                    9,661,395Other
      assets, net
                                                    
                                                    
                                                    326,961
                                                    
                                                    
                                                    
                                                    333,084Total
      assets
                                                    
                                                    $
                                                    32,279,384
                                                    
                                                    
                                                    $
                                                    32,931,017LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable
                                                    
                                                    $
                                                    2,123,410
                                                    
                                                    
                                                    $
                                                    1,950,446Other
      accrued liabilities
                                                    
                                                    
                                                    1,653,519
                                                    
                                                    
                                                    
                                                    2,241,259Deferred
      income taxes
                                                    
                                                    
                                                    425,036
                                                    
                                                    
                                                    
                                                    429,699Deferred
      revenue
                                                    
                                                    
                                                    688,200
                                                    
                                                    
                                                    
                                                    688,200Total
      current liabilities
                                                    
                                                    
                                                    4,890,165
                                                    
                                                    
                                                    
                                                    5,309,604Deferred
      revenue
                                                    
                                                    
                                                    458,800
                                                    
                                                    
                                                    
                                                    802,900Commitments
      and contingenciesStockholders'
      equity:Preferred
      stock; $0.01 par value; 1,500,000 sharesauthorized;
      no shares issued and outstanding
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -Series
      A preferred stock; $0.01 par value; 200,000 sharesauthorized;
      no shares issued and outstanding
                                                    
                                                    
                                                    -
                                                    
                                                    
                                                    
                                                    -Common
      stock; $0.01 par value; 30,000,000 sharesauthorized;
      10,415,709 and 10,396,878  shares issuedat
      December 31, 2010 and June 30, 2010, respectively;8,112,217
      and 8,093,386 shares outstanding atDecember
      31, 2010 and June 30, 2010, respectively
                                                    
                                                    
                                                    104,157
                                                    
                                                    
                                                    
                                                    103,969Additional
      paid-in capital
                                                    
                                                    
                                                    48,445,281
                                                    
                                                    
                                                    
                                                    48,362,922Accumulated
      deficit
                                                    
                                                    
                                                    (887,591
                                                    )
                                                    
                                                    
                                                    (916,950
                                                    )Less
      treasury stock, at cost; 2,303,492 shares atDecember
      31, 2010 and June 30, 2010, respectively
                                                    
                                                    
                                                    (20,731,428
                                                    )
                                                    
                                                    
                                                    (20,731,428
                                                    )Total
      stockholders' equity
                                                    
                                                    
                                                    26,930,419
                                                    
                                                    
                                                    
                                                    26,818,513Total
      liabilities and stockholders' equity
                                                    
                                                    $
                                                    32,279,384
                                                    
                                                    
                                                    $
                                                    32,931,017