Exhibit
      99.1





Contact:
              Daniel
      C. DunnChief
      Financial Officer314/771-2400





Allied
Healthcare Reports Second Quarter Loss





ST.
LOUIS, FEB. 10, 2009 – Allied Healthcare Products Inc. (NASDAQ: AHPI) reported
that its net income for the second quarter ending December 31, 2008, declined
from about $6,500, or zero cents per share in the prior year period, to a loss
of about $436,000, or a negative 6 cents per share, primarily because of lower
sales volume in the current year period.




Net sales for the second quarter fell
about 8 percent, or almost $1.1 million, to about $12.5 million.  The
sales decline reflects two major factors.  The first factor is order
timing and order releasesfor
a few major customers.  The second factor is the end of reimbursement
payments by Abbott Labs for certain research and development costs incurred by
Allied. Abbott made no payments in the second quarter of this fiscal year versus
payments totaling $451,000 for the second quarter of last year. Abbott made no
payments this year because it had completed its funding agreement with
Allied.




For the first half of the fiscal year,
Allied net income declined from about $93,500, or 1 cent per share in the prior
year period, to a loss of about $227,000, or a loss of about 3 cents per share
in the current year period.   Net sales for the first two
quarters declined by about 3 percent, or about $750,000, to about $27
million.Again,
$451,000 of the $750,000 decline resulted from the end of reimbursement payments
by Abbott.








“Our analysis of first half sales
results indicates an anomaly of order and order release timing by long-time
customers,” said Earl Refsland, Allied President and Chief Executive
Officer.  “We expect these orders to be restored in the second half of
the fiscal year.”




Allied is tracking economic changes for
effects on its results, Refsland said, but historically its business has not
suffered as much as the overall economy in recessions.




The company incurred one-time
production, testing and material costs totaling about $420,000 associated with
the introduction of new products in the first two quarters.




In the
second quarter, prices for commodity materials such as brass and plastics began
to decline and cost-reduction efforts on non-commodity materials started to show
positive results.  Allied believes that the benefits of these lower
costs will further enhance its margins in the second half of the fiscal
year.




Allied
Healthcare Products, Inc. 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’s 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 products
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.





##


2





ALLIED
      HEALTHCARE PRODUCTS, INC.CONSOLIDATED
      STATEMENT OF OPERATIONS(UNAUDITED)





Three
      months ended,
                                            
                                            
                                            Six
      months ended,December
      31,
                                            
                                            
                                            December
      31,2008
                                            
                                            
                                            2007
                                            
                                            
                                            2008
                                            
                                            
                                            2007Net
      sales
                                            
                                            $
                                            12,531,342
                                            
                                            
                                            $
                                            13,626,016
                                            
                                            
                                            $
                                            26,972,353
                                            
                                            
                                            $
                                            27,727,634Cost
      of sales
                                            
                                            
                                            9,821,746
                                            
                                            
                                            
                                            10,714,172
                                            
                                            
                                            
                                            20,761,703
                                            
                                            
                                            
                                            21,648,777Gross
      profit
                                            
                                            
                                            2,709,596
                                            
                                            
                                            
                                            2,911,844
                                            
                                            
                                            
                                            6,210,650
                                            
                                            
                                            
                                            6,078,857Selling
      General and administrative expenses
                                            
                                            
                                            3,400,342
                                            
                                            
                                            
                                            2,932,428
                                            
                                            
                                            
                                            6,583,929
                                            
                                            
                                            
                                            5,975,398Income
      (loss) from operations
                                            
                                            
                                            (690,746
                                            )
                                            
                                            
                                            (20,584
                                            )
                                            
                                            
                                            (373,279
                                            )
                                            
                                            
                                            103,459Interest
      income
                                            
                                            
                                            (18,455
                                            )
                                            
                                            
                                            (38,177
                                            )
                                            
                                            
                                            (49,114
                                            )
                                            
                                            
                                            (78,946
                                            )Interest
      expense
                                            
                                            
                                            5,849
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            5,849
                                            
                                            
                                            
                                            -Other,
      net
                                            
                                            
                                            11,112
                                            
                                            
                                            
                                            11,113
                                            
                                            
                                            
                                            23,179
                                            
                                            
                                            
                                            26,263(1,494
                                            )
                                            
                                            
                                            (27,064
                                            )
                                            
                                            
                                            (20,086
                                            )
                                            
                                            
                                            (52,683
                                            )Income
      (loss) before provision for (benefit from) income taxes
                                            
                                            
                                            (689,252
                                            )
                                            
                                            
                                            6,480
                                            
                                            
                                            
                                            (353,193
                                            )
                                            
                                            
                                            156,142Provision
      for (benefit from) income taxes
                                            
                                            
                                            (253,158
                                            )
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (125,456
                                            )
                                            
                                            
                                            62,597Net
      income (loss)
                                            
                                            $
                                            (436,094
                                            )
                                            
                                            $
                                            6,480
                                            
                                            
                                            $
                                            (227,737
                                            )
                                            
                                            $
                                            93,545Net
      income (loss) per share - Basic and diluted
                                            
                                            $
                                            (0.06
                                            )
                                            
                                            $
                                            0.00
                                            
                                            
                                            $
                                            (0.03
                                            )
                                            
                                            $
                                            0.01Weighted
      average common shares Outstanding - Basic
                                            
                                            
                                            7,901,327
                                            
                                            
                                            
                                            7,883,577
                                            
                                            
                                            
                                            7,896,279
                                            
                                            
                                            
                                            7,883,577Weighted
      average common shares Outstanding - Diluted
                                            
                                            
                                            7,901,327
                                            
                                            
                                            
                                            8,130,901
                                            
                                            
                                            
                                            7,896,279
                                            
                                            
                                            
                                            8,122,607




3





ALLIED
      HEALTHCARE PRODUCTS, INC.CONSOLIDATED
      BALANCE SHEET(UNAUDITED)





December
      31, 2008
                                    
                                    
                                    June
      30, 2008ASSETSCurrent
      assets:Cash
      and cash equivalents
                                    
                                    $
                                    4,212,532
                                    
                                    
                                    $
                                    6,149,015Accounts
      receivable, net of allowances of $300,000
                                    
                                    
                                    4,642,668
                                    
                                    
                                    
                                    6,441,683Inventories,
      net
                                    
                                    
                                    13,700,766
                                    
                                    
                                    
                                    12,046,450Other
      current assets
                                    
                                    
                                    495,210
                                    
                                    
                                    
                                    394,975Total
      current assets
                                    
                                    
                                    23,051,176
                                    
                                    
                                    
                                    25,032,123Property,
      plant and equipment, net
                                    
                                    
                                    11,040,808
                                    
                                    
                                    
                                    10,542,573Goodwill
                                    
                                    
                                    15,979,830
                                    
                                    
                                    
                                    15,979,830Other
      assets, net
                                    
                                    
                                    697,206
                                    
                                    
                                    
                                    703,328Total
      assets
                                    
                                    $
                                    50,769,020
                                    
                                    
                                    $
                                    52,257,854LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable
                                    
                                    $
                                    2,626,340
                                    
                                    
                                    $
                                    2,590,804Other
      accrued liabilities
                                    
                                    
                                    1,900,964
                                    
                                    
                                    
                                    2,960,334Deferred
      income taxes
                                    
                                    
                                    518,489
                                    
                                    
                                    
                                    500,238Deferred
      revenue
                                    
                                    
                                    690,000
                                    
                                    
                                    
                                    690,000Total
      current liabilities
                                    
                                    
                                    5,735,793
                                    
                                    
                                    
                                    6,741,376Deferred
      revenue
                                    
                                    
                                    1,832,950
                                    
                                    
                                    
                                    2,177,500Commitments
      and contingenciesStockholders'
      equity:Preferred
      stock; $0.01 par value; 1,500,000 shares authorized; no shares issued and
      outstanding
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -Series
      A preferred stock; $0.01 par value; 200,000 shares authorized; no shares
      issued and outstanding
                                    
                                    
                                    -
                                    
                                    
                                    
                                    -Common
      stock; $0.01 par value; 30,000,000 shares authorized; 10,204,819 and
      10,188,569  shares issued at December 31, 2008 and June 30,
      2008, respectively; 7,901,327 and 7,885,077 shares outstanding at December
      31, 2008 and June 30, 2008, respectively
                                    
                                    
                                    102,048
                                    
                                    
                                    
                                    101,886Additional
      paid-in capital
                                    
                                    
                                    47,612,958
                                    
                                    
                                    
                                    47,524,084Retained
      earnings
                                    
                                    
                                    16,216,699
                                    
                                    
                                    
                                    16,444,436Less
      treasury stock, at cost; 2,303,492 shares at December 31, 2008 and June
      30, 2008, respectively
                                    
                                    
                                    (20,731,428
                                    )
                                    
                                    
                                    (20,731,428
                                    )Total
      stockholders' equity
                                    
                                    
                                    43,200,277
                                    
                                    
                                    
                                    43,338,978Total
      liabilities and stockholders' equity
                                    
                                    $
                                    50,769,020
                                    
                                    
                                    $
                                    52,257,854




4