SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC  20549


                                    FORM 10-Q

(Mark  One)

 X     Quarterly  report  pursuant  to  Section  13  or  15(d) of the Securities
---    Exchange  Act  of  1934


       For  the  quarterly  period  ended  December  31,  1999

       Transition  report  pursuant  to  Section  13  or 15(d) of the Securities
---    Exchange  Action  of  1934

       For  the  transition  period  from  to


                         Commission File Number 0-19266

                        ALLIED HEALTHCARE PRODUCTS, INC.

                              1720 Sublette Avenue

                           St. Louis, Missouri  63110
                                  314/771-2400

                          IRS Employment ID 25-1370721

     Indicate  by  check  mark  whether the registrant (1) has filed all reports
required  to  be  filed by Section 13 or 15(d) of the Securities Exchange Act of
1934  during  the  preceding twelve months (or for such shorter periods that the
registrant  was  required to file such reports, and (2) has been subject to such
filing  requirements  for  the  past  ninety  days.

                    Yes   X     No
                         ---         ---

     The  number  of  shares  of common stock outstanding at February 3, 2000 is
7,806,682  shares.

<PAGE>
<TABLE>
<CAPTION>
                               INDEX

                                                             Page
Part I - Financial Information                              Number


Item 1.  Financial Statements
<C>      <S>                                                 <C>
         Consolidated Statement of Operations -                 3
         three months and six months ended December  31,
         1999 and 1998 (Unaudited)

         Consolidated Balance Sheet -                         4-5
         December 31, 1999  (Unaudited) and
         June 30, 1999

         Consolidated Statement of Cash Flows -                 6
         six months ended December 31, 1999 and 1998
         (Unaudited)

         Consolidated Statement of Changes in                   7
         Stockholders' Equity - six months ended
         December 31, 1999  (Unaudited)

         Notes to Consolidated Financial Statements          8-12

Item 2.  Management's Discussion and Analysis of            12-22
         Financial Condition and Results of Operations

Part  II  -  Other  Information

Item 6.  Exhibits and Reports on Form 8-K                      23

         Signature                                             24
</TABLE>


                                        2
<PAGE>
<TABLE>
<CAPTION>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                      CONSOLIDATED STATEMENT OF OPERATIONS
                                   (UNAUDITED)


                                                 Three  months  ended        Six  months  ended
                                                     December  31,              December  31,
                                               -------------------------  --------------------------
                                                  1999          1998          1999          1998
                                               -----------  ------------  ------------  ------------
<S>                                            <C>          <C>           <C>           <C>
Net Sales                                      16,758,311    17,092,293    32,825,830    34,951,396
Cost of sales                                  12,133,403    13,669,635    24,174,694    27,122,125
                                               -----------  ------------  ------------  ------------
Gross profit                                    4,624,908     3,422,658     8,651,136     7,829,271

Selling, general and administrative expenses    4,265,548     4,724,043     8,908,331     9,601,391
Provision for product recall                            0     1,500,000       300,000     1,500,000
Provision for restructuring and consolidation           0      -200,000             0       772,850

                                                                                    0             0
                                               -----------  ------------  ------------  ------------
Income/(Loss) from operations                     359,360    -2,601,385      -557,195    -4,044,970

Other expenses:
  Interest expense                                417,831       444,153       856,974       977,817
  Other, net                                       16,406          5045        30,735        23,991
                                               -----------  ------------  ------------  ------------
                                                  434,237       449,198       887,709     1,001,808
                                               -----------  ------------  ------------  ------------

Loss before benefit for income taxes              -74,877    -3,050,583    -1,444,904    -5,046,778

Provision (Benefit) for income taxes               51,592    -1,138,691      -414,877    -1,855,629
                                               -----------  ------------  ------------  ------------
Net Loss                                        ($126,469)  ($1,911,892)  ($1,030,027)  ($3,191,149)
                                               ===========  ============  ============  ============

Basic and diluted loss per share                   ($0.02)       ($0.25)       ($0.13)       ($0.41)
                                               ===========  ============  ============  ============

Weighted average shares                         7,806,682     7,806,682     7,806,682     7,806,682
                                               ===========  ============  ============  ============
</TABLE>

           See accompanying Notes to Consolidated Financial Statements


                                   (CONTINUED)


                                        3
<PAGE>
<TABLE>
<CAPTION>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                          CONSOLIDATED BALANCE SHEET
                                   ASSETS
                                 (UNAUDITED)


                                                          December 31     June 30
                                                             1999          1999
                                                          (Unaudited)
                                                         -------------  -----------
<S>                                                      <C>            <C>
Current Assets:
     Cash                                                $     393,345  $   587,456
     Accounts receivable, net of allowance for doubtful
          accounts of $939,928 and 834,883 respectively     10,638,398   12,601,165
     Inventories                                            17,184,967   17,499,822
     Income taxes receivable                                 2,047,760    1,635,866
     Other current assets                                      368,600      138,361
                                                         -------------  -----------
          Total current assets                              30,633,070   32,462,670
                                                         -------------  -----------

     Property, plant and equipment, net                     13,121,374   14,287,037
     Goodwill, net                                          26,802,948   27,210,653
     Other assets, net                                         262,666      314,828
                                                         -------------  -----------
          Total assets                                   $  70,820,058  $74,275,188
                                                         =============  ===========
</TABLE>

           See accompanying Notes to Consolidated Financial Statements


                                        4
<PAGE>
<TABLE>
<CAPTION>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                          CONSOLIDATED BALANCE SHEET
                      LIABILITIES AND STOCKHOLDERS' EQUITY
                                 (UNAUDITED)


                                                      December 31,     June 30,
                                                          1999           1999
                                                      -------------  ------------
<S>                                                   <C>            <C>
Current liabilities
  Accounts payable                                    $   4,285,338  $  5,434,303
Current portion fo long-term debt                           962,513       907,649
  Accural for restructuring and consolidation                     0             0
  Accrual for product recall                                566,777       594,725
  Other current liabilites                                2,608,053     2,906,636

                                                      -------------  ------------
    Total current liabilities                             8,422,681     9,843,313
                                                      -------------  ------------

Long-term debt                                           15,325,714    16,330,185

Deferred income tax liability-noncurrent                    182,608       182,608

Commitments and contingencies                                     0             0

Stockholders' equity:
  Preferred stock; $0.01 par value; 1,500,000 shares
  authorized; no shares issued and outstanding'
  which included Series A preferred stock, $.01 par
  value, 200,000 shares authorized, no shares
  issued and outstanding Common stock;$.01 par
  value, 30,000,000 shares authorized, 7,806,682
  shares issued and outstanding at December 31,
  1998 and June 30, 1998                                    101,102       101,102
  Additional paid-in capital                             47,014,621    47,014,621
  Common stock in treasury, at cost                     -20,731,428   -20,731,428
  Retaining earnings                                     20,504,760    21,534,787

                                                      -------------  ------------
    Total stockholders' equity                           46,889,055    47,919,082

                                                      -------------  ------------
    Total liabilities and stockholders' equity        $  70,820,058  $ 74,275,188
                                                      =============  ============
</TABLE>


           See accompanying Notes to Consolidated Financial Statements


                                        5
<PAGE>
<TABLE>
<CAPTION>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)


                                                              Six  months  ended
                                                                December  31,
                                                         ----------------------------
                                                             1999           1998
                                                         -------------  -------------
<S>                                                      <C>            <C>
Cash flows from operating activites:
  Net loss                                                -$1,030,027    -$3,191,149
  Adjustments to reconcile net loss to net
    cash provided by (used in) operating activities:

    Depreciation and amortization                           1,769,650      2,041,725
    Provision for restructing and consolidation                     0        273,072
    Provsion for product recall                               -27,948      1,500,000
    Decrease in accounts receivable, net                    1,962,767      1,510,479
    Decrease in inventories                                   314,855      1,297,865
    Increase in income taxes receivable                      -411,894       -980,947
    (Increase) decrease inother current assets               -230,239         43,968
    (Decrease) increase in accounts payable                -1,148,965        199,285
    Increase (decrease) in accrued income taxes               158,635       -942,036
    Decrease in other currnet liabilities                    -457,218       -451,118
                                                         -------------  -------------
    Net cash provided by operating activities                 899,616      1,301,144
                                                         -------------  -------------


Cash flows from investing activities:
  Capital expenditures, net                                  -144,120       -746,783
  Proceeds on sale of Toledo, Ohiofacilities                        0      1,393,287
                                                         -------------  -------------

    Net cash provided by (used-in) investing activities      -144,120        646,504
                                                         -------------  -------------

Cash flows from financing activities:
  Proceeds from issuancance of long-terrm debt                      0      5,000,000
  Payment of long-term debt                                  -450,131     -6,186,306
  Borrowings under revolving credit agreement              36,724,753     44,295,422
  Payment under revolving credit agreement                -37,224,229    -45,563,575
  Debt issuance cost                                                0        -32,104
                                                         -------------  -------------
    Net cash used in financing activities                    -949,607     -2,486,563
                                                         -------------  -------------

  Net (decrease) in cash and equivalents                     -194,111       -538,915
  Cash and equivalents at beginning of period                 587,456      1,194,813

                                                         -------------  -------------
  Cash and equivalents at end of period                  $    393,345   $    655,898
                                                         =============  =============

Supplimental disclosures of cash flow information:
  Cash paid during the period for:
    interest                                             $  1,026,589   $  1,120,525
    Income taxes                                         $     86,987   $     82,348
</TABLE>

           See accompanying Notes to Consolidated Financial Statements


                                        6
<PAGE>
<TABLE>
<CAPTION>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                      CONSOLIDATED STATEMENT OF CHANGES IN
                              STOCKHOLDERS' EQUITY
                                   (UNAUDITED)



                                              Additional
                        Preferred    Common     Paid-in      Treasury       Retained
                          Stock      Stock      capital        Stock        earnings
                        ----------  --------  -----------  -------------  ------------
<S>                     <C>         <C>       <C>          <C>            <C>
Balance, June 30, 1999  $        0  $101,102  $47,014,621  ($20,731,428)  $21,534,787

Net loss for the
     Six months ended
     December 31, 1999                                                     (1,030,027)
                        ----------  --------  -----------  -------------  ------------
Balance
     December 31, 1999  $        0  $101,102  $47,014,621  ($20,731,428)  $20,504,760
                        ==========  ========  ===========  =============  ============
</TABLE>

           See accompanying Notes to Consolidated Financial Statements


                                        7
<PAGE>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.     Unaudited  Financial  Statements

     The  accompanying  unaudited  financial  statements  have  been prepared in
accordance  with  the  instructions  for Form 10-Q and do not include all of the
information  and  footnotes required by generally accepted accounting principles
for  complete  financial  statements.  In  the  opinion  of  management,  all
adjustments,  consisting  only  of  normal  recurring  adjustments  considered
necessary  for  a  fair presentation, have been included.  Operating results for
any  quarter are not necessarily indicative of the results for any other quarter
or  for  the full year.  These statements should be read in conjunction with the
financial  statements and notes to the consolidated financial statements thereto
included  in  the  Company's  Form  10-K  for  the  year  ended  June  30, 1999.

2.  Inventories
     Inventories  are  comprised  as  follows:

<TABLE>
<CAPTION>
                   December 31, 1999   June 30, 1999
                      (Unaudited)
<S>               <C>                  <C>
Work-in progress  $         1,281,720  $      779,027
Component Parts            11,422,413      13,848,272
Finished Goods              4,480,834       2,872,523
                  -------------------  --------------
                  $        17,184,967  $   17,499,822
                  ===================  ==============
</TABLE>

The  above  amounts  are  net  of a reserve for obsolete and excess inventory of
approximately  $1.9  million  at  December  31,  1999  and  June  30,  1999.

3.     Litigation  and  Contingencies

     The  Company  becomes,  from  time  to  time,  a  party  to personal injury
litigation  arising  out  of  incidents involving the use of its products.  More
specifically  there  have  been lawsuits filed against the Company alleging that
its aluminum oxygen pressure regulator, marketed under its Life Support Products
label, has caused fires that have led to personal injury.  The Company believes,
based  on  preliminary  findings,  that  its  products  did not cause the fires.
However,  the  Company  intends  to  defend these claims in cooperation with its
insurers.  Based  on the progression of certain cases the Company has recorded a
$0.4  million  charge  to  operations  in  the  first quarter of fiscal 2000 for
cumulative  amounts  estimated  to  be  payable  by  the  Company  under  its
self-insurance retention for legal costs associated with defending these claims.
The  Company  believes that any potential judgements resulting from these claims
over  its  self-insurance  retention  would  be covered by the Company's product
liability  insurance.


                                        8
<PAGE>
4.    Senior  Management  Change

     On  July  28,  1999  the  Company's  President, Chief Executive Officer and
Director  Uma  Nandan  Aggarwal  resigned.  Subsequently  on August 24, 1999 the
Company  announced  Earl  R.  Refsland as President, Chief Executive Officer and
Director of the Company.  As a result of Mr. Aggarwal's resignation, the Company
has  recorded a $0.2 million charge to operations in the first quarter of fiscal
year  2000  per  terms  of  a  mutually  accepted  departure  agreement.

5.   Sale  of  Headwall  Products  Division

     On  May  28,  1999,  the  Company sold the assets of Hospital Systems, Inc.
("HSI") to David Miller (former General Manager-Hospital Systems, Inc.) for $0.5
million.  The  net  proceeds of $0.5 million were utilized to repay a portion of
the  Company's  revolving credit facility.  The sale of HSI, located in Oakland,
California,  resulted in a gain before taxes for financial reporting purposes of
$0.03  million.

     Had  the  divestiture  occurred on July 1, 1998, consolidated pro forma net
sales, net loss, and loss per share for the quarter ended December 31,1999 would
have  been $16.2 million, $(2.0) million and $(0.26), respectively.  For the six
month  period  ending  December 31, 1999 pro forma net sales, net loss, and loss
per  share  would  have  been  $32.9  million,  $(3.3)  million  and  $(0.42),
respectively.

6.    LSP  Oxygen  Regulator  Recall

     On  February  4,  1999,  Allied  announced  a  recall  of  aluminum  oxygen
regulators  marketed  under  its  Life  Support  Products  ("LSP") label.  These
products  are  used to regulate pressure of bottled oxygen for administration to
patients  under emergency situations.  Following reports of regulator fires, the
Company  instituted  a recall in May 1997, under which it provided retrofit kits
to prevent contaminants from entering the regulators. While preliminary findings
led  the  Company  to  believe the Company's products did not cause those fires,
there  was  enough concern among the users that the Company, in cooperation with
the  U. S. Food and Drug Administration ("FDA"), agreed to institute a voluntary
recall  to  replace  aluminum  components  in  the  high pressure chamber of the
regulators  with  brass  components.  The FDA has recommended that all regulator
manufacturers cease use of aluminum in regulators.  Accordingly, the Company has
now  introduced  new brass regulators and is also offering a trade-in program to
the existing users.  As a result of the recall, the Company recorded a charge of
$1.5  million  pre-tax,  $.9 million after tax, or $0.12 per share in the second
quarter  of  fiscal  1999.

     The  LSP  brand  of  regulator  is  predominantly used by Emergency Medical
Services  ("EMS") for the administration of oxygen in the emergency environment.
To  date,  all  known  fires  are  believed  to  have been confined to incidents
involving  EMS.  This  is  presumably  due  to the environment in which aluminum
pressure  regulators  are  used.  Even  though  the  recall is focused on oxygen
pressure regulators used in the EMS market, other markets have been experiencing
significant sales resistance to regulators manufactured with aluminum bodies and
brass  components  in  the high pressure chamber.  As a result, the Company will
transition  the  manufacturing  of  aluminum  bodied oxygen pressure regulators,
marketed  under  the  B&F  brand  name, to one with an all-brass design. The new
brass  regulator  has  been  tested  and  meets  the  International  Standards
Organization  ("ISO")  E-4  Ignition  Standard.  This  is  the  only  recognized
standard  for  ignition  resistance  which  is  recognized by the Compressed Gas
Association  ("CGA")  and  ISO.  Accordingly,  the  Company  has recorded a $0.3
million  addition  to  the  provision for product recall in the first quarter of
fiscal  year  2000  to  write-down  the  value  of  remaining aluminum regulator
component  inventories  for  all  markets.


                                        9
<PAGE>
A  reconciliation of activity with respect to the Company's product recall is as
follows:

<TABLE>
<CAPTION>


<S>                                                  <C>
Provision, June 30, 1999                             $ 594,725
Addition to provision for write-down of inventories    300,000
Product costs for retrofitting and replacement        (324,471)
Administrative costs incurred                           (3,477)
                                                     ----------
Ending Balance, December 31, 1999                    $ 566,777
                                                     ==========
</TABLE>

7.    B&F  Consolidation  Provision

     On  August  5,  1998  the  Company's  Board of Directors voted to close the
Toledo  facility  of its disposable products division and consolidate production
of  the  B&F  line  of home care products into its manufacturing facility in St.
Louis,  Missouri.  This  move  was  announced  on  August 10, 1998. The move was
substantially completed during the second quarter of fiscal 1999.  In connection
with  the shutdown of the facility, Allied recorded a provision of approximately
$1.0  million  pre-tax, $0.6 million after tax, or $0.07 per share, in the first
quarter of fiscal 1999 to cover the cost of closing the facility.  The provision
reflects  costs  of certain fixed asset impairments, employee severance benefits
and  other  related  exit  costs.   Subsequently,  during  the second quarter of
fiscal  1999,  the  company  negotiated and received a $0.2 million cash payment
from  the  City  of  Toledo  as  partial  reimbursement  for  closure  costs.
Accordingly,  Allied recorded this cash payment, in the second quarter of fiscal
1999,  as  a reduction to the aforementioned provision resulting in a net charge
of  $0.8  million  pre-tax,  $0.5  million after tax, or $0.06 per share for the
fiscal  year  ended  June  30,  1999.


8  .   Workforce  Reduction

     In  an  effort  to  bring  operating  expenses in line with ongoing revenue
levels,  the Company announced and instituted in October of 1999 a 15% workforce
reduction  estimated  to  result  in  $2.6  million  in  annualized  savings.
Accordingly,  the  Company  recorded  a $0.2 million charge to operations in the
second  quarter  of  fiscal  2000  for  severance  related  expenses.


9.    Debt  Refinancing  and  Arrangement

     On  August  7,  1998,  the Company borrowed approximately $5.0 million from
LaSalle  National  Bank.  The borrowing was secured by a first security interest
in  the  Company's  St. Louis facility.  The loan requires monthly principal and


                                       10
<PAGE>
interest  payments  of  $0.06 million, with a final payment of all principal and
interest  remaining unpaid due at maturity on August 1, 2003.  Interest is fixed
at  7.75%  annum.  Proceeds  from  the  borrowing were used to pay down existing
debt,  which  bore  a higher interest rate.  The loan agreement includes certain
debt  covenants,  which  the Company must comply with over the term of the loan,
and  for  which  the  Company  was  in  compliance  at  December  31,  1999.

     On September 8, 1998, the Company's credit facilities with Foothill Capital
Corporation  were  amended.  The Company's existing term loan was eliminated and
replaced  with  an amended revolving credit facility.  As amended, the revolving
credit facility remains at $25.0 million.  The interest rate on the facility has
been  reduced  from  the  floating  reference rate (8.00% at June 30, 1999) plus
0.50% to the floating reference rate plus 0.25%.  The reference rate, as defined
in  the  credit  agreement,  is  the  variable rate of interest, per annum, most
recently  announced  by Wells Fargo Bank, National Association, or any successor
thereto,  as  its  "base rate".  This amendment also provides the Company with a
rate of LIBOR + 2.50%.  Interest rates on the reference rate and LIBOR will drop
by  0.25%  at the end of fiscal 2000 if the Company is profitable.  In addition,
the  fees  charged to the Company were reduced along with certain debt covenants
for  which  the  Company  was  in  compliance  at  June  30,  1999.

     On  March  3,  1999,  the  Company  purchased the remaining $505,000 of its
outstanding Missouri Industrial Revenue Bonds.  The bonds, which bore a variable
interest  rate, had a final maturity date of April 1, 2001 and were repaid early
using  borrowings  from  the  Company's  revolving  credit  facility.

On  March 24, 1999, the Company's credit facility with LaSalle National Bank was
amended.  The  amendment  provided  for  favorable  changes  to  certain  debt
covenants.

     On  June  28,  1999,  the Company's credit facilities with Foothill Capital
Corporation  were  amended.  The  amendment provides for favorable interest rate
reduction, based upon annual profitability, for fiscal years 2001 and 2002.  The
amendment  also  extended  the  maturity  date  to  January 6, 2003 along with a
favorable  change  to  certain  debt  covenants.


                                       11
<PAGE>
     On  September  1,  1999 the Company's credit facility with LaSalle National
Bank  (dated  as  of  August  7,1998  and filed with the Securities and Exchange
Commission as Exhibit 10(24) to the Company's Annual Report on Form 10-K for the
fiscal  year ended June 30, 1998) was amended.  The amendment provides favorable
changes  to  certain  debt  covenants  and  is  as  follows:

     The terms of Page 7, paragraph (n) of the Note requiring that the Company's
Tangible  Net  Worth at all times not be less than $21,000,000 are hereby waived
from  this  date  provided the Company's Tangible Net Worth at the close of each
fiscal  quarter  beginning  June  30,  1999 must not be less than the sum of (i)
$17,500,000  plus  (ii)  fifty percent (50%) of the Net Income (exclusive of any
losses)  reflected  in  each  audited  income  statement  for  each  fiscal year
beginning  June  30, 1999.  For the purposes of this paragraph, the "Net Income"
shall  mean,  for  any  period  of  calculation,  the  Company's  net  income as
determined  in  accordance  with  GAAP  but excluding any extraordinary gain and
losses,  net  of  taxes.



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS.


GENERAL
-------

The  following  discussion  summarizes  the  significant  factors  affecting the
consolidated  operating  results  and  financial  condition of Allied Healthcare
Products,  Inc.  ("Allied"  or  the "Company") for the three month and six month
periods  ended  December  31,  1999  compared to the three and six month periods
ended December 31, 1998.  This discussion should be read in conjunction with the
June  30,  1999 consolidated financial statements and accompanying notes thereto
included  in  the  Company's  Form  10-K  for  the  year  ended  June  30, 1999.

Certain  statements  contained  herein  are  forward-looking statements.  Actual
results  could  differ  materially from those anticipated as a result of various
factors, including cyclical and other industry downturns, the effects of federal
and  state  legislation  on  healthcare  reform, including Medicare and Medicaid
financing,  consolidation and rationalization activities, difficulties or delays
in  the  introduction  of  new products or disruptions in selling, manufacturing
and/or  shipping  efforts.  The  Company  ships  a significant percentage of its
products outside the U. S. and is thus subject to foreign economic fluctuations.

Specific transactions and events impacting fiscal 2000 and fiscal 1999 operating
results, which make meaningful comparisons more difficult, are summarized below.


                                       12
<PAGE>
LITIGATION  AND  CONTINGENCIES
------------------------------

The  Company  becomes,  from time to time, a party to personal injury litigation
arising  out  of incidents involving the use of its products.  More specifically
there have been a number of lawsuits filed against the Company alleging that its
aluminum  oxygen  pressure  regulator,  marketed under its Life Support Products
label, has caused fires that have led to personal injury.  The Company believes,
based  on  preliminary  findings,  that  its  products  did not cause the fires.
Accordingly,  the Company intends to defend these claims in cooperation with its
insurers.  Based  on the progression of certain cases the Company has recorded a
$0.4  million  charge  to  operations  in  the  first quarter of fiscal 2000 for
cumulative  amounts  estimated  to  be  payable  by  the  Company  under  its
self-insurance retention for legal costs associated with defending these claims.
The  Company  believes that any potential judgements resulting from these claims
over  its  self-insurance  retention  would  be covered by the Company's product
liability  insurance.



SENIOR  MANAGEMENT  CHANGE
--------------------------

On  July  28, 1999 the Company's President, Chief Executive Officer and Director
Uma  Nandan  Aggarwal  resigned.  Subsequently  on  August  24, 1999 the Company
announced Earl R. Refsland as President, Chief Executive Officer and Director of
the  Company.  As  a  result  of  Mr.  Aggarwal's  resignation,  the Company has
recorded a $0.2 million charge to operations in the first quarter of fiscal year
2000  per  terms  of  a  mutually  accepted  departure  agreement.


LSP  OXYGEN  REGULATOR  RECALL
------------------------------

On  February  4,  1999,  Allied announced a recall of aluminum oxygen regulators
marketed  under  its  Life  Support  Products label.  These products are used to
regulate  pressure  of  bottled  oxygen  for  administration  to  patients under
emergency  situations.  Following  reports  of  regulator  fires,  some of which
involved  Company  product,  the  Company instituted a recall in May 1997, under
which  it  provided  retrofit  kits  to  prevent  contaminants from entering the
regulators.  While preliminary findings led the Company to believe the Company's
products  did not cause the fires, there was enough concern among the users that
the Company, in cooperation with the U. S. Food and Drug Administration ("FDA"),
agreed  to  institute  a  voluntary recall to replace aluminum components in the
high  pressure  chamber  of the regulators with brass components at pre-existing
authorized  service  centers.  The  FDA  has  recommended  that  all  regulator
manufacturers cease use of aluminum in regulators.  Accordingly, the Company has
now  introduced  new brass regulators and is also offering a trade in program to
the  existing  users.  The  new  brass  regulator  has been tested and meets the
International Standards Organization ("ISO") E-4 Ignition Standard.  This is the
only  recognized  standard  for  ignition resistance  which is recognized by the
Compressed  Gas  Association and the ISO.    Based on an estimated population of
100,000  regulators, the Company estimates that the recall could cost as much as
$2.7  million  or more.  However, the Company will make every effort to mitigate
these costs and has recorded a charge of $1.5 million pre-tax, $.9 million after
tax,  or  $0.12  per  share  in  the  second  quarter  of  fiscal  1999.


                                       13
<PAGE>
The  LSP  brand of regulator is predominantly used by Emergency Medical Services
("EMS") for the administration of oxygen in the emergency environment.  To date,
all  known  fires are believed to have been confined to incidents involving EMS.
This  is presumably due to the environment in which aluminum pressure regulators
are  used.  Even though the recall is focused on oxygen pressure regulators used
in  the  EMS  market,  other  markets  have  been experiencing significant sales
resistance  to regulators manufactured with aluminum bodies and brass components
in  the  high  pressure  chamber.  As  a result, the Company will transition the
manufacturing  of aluminum bodied oxygen pressure regulators, marketed under the
B&F  brand  name, to one with an all-brass design.  Accordingly, the Company has
recorded  a  $0.3  million  addition  to the provision for product recall in the
first  quarter of fiscal year 2000 to write-down the value of remaining aluminum
regulator  component  inventories  for  all  markets.


B&F  RELOCATION
---------------

On  August  10,  1998,  the  Company announced its intention to close the Toledo
facility  of  its disposable products division and relocate the B&F product line
of  home  care  products  to its St. Louis manufacturing facility. In connection
with  the  shutdown  of  the facility, the Company recorded a one-time charge of
approximately  $1.0 million ($0.6 million after taxes), or $.07 per share during
the  first  quarter  of  fiscal 1999. Subsequently, during the second quarter of
fiscal  1999,  the  company  negotiated and received a $0.2 million cash payment
from  the  City  of  Toledo  as  partial  reimbursement  for  relocation  costs.
Accordingly,  Allied  recorded  this  cash  payment  as  a  reduction  to  the
aforementioned  provision,  in the second quarter of fiscal 1999, resulting in a
net  charge  of $0.8 million pre-tax, $0.5 million after tax, or $0.06 per share
for  the  year  ended  December  31,  1999.  These costs were substantially paid
during  the  second  quarter  of  fiscal  1999.


                                       14
<PAGE>
FINANCIAL  INFORMATION
----------------------

The  following table sets forth, for the fiscal period indicated, the percentage
of  net  sales  represented  by  certain  items  reflected  in  the  Company's
consolidated  statement  of  operations.

<TABLE>
<CAPTION>
                                                  Three Months     Six Months
                                                     Ended           Ended
                                                  December 31,     December 31,
                                                ---------------  ------  ------
                                                 1999    1998     1999    1998
                                                ------  -------  ------  ------
<S>                                             <C>     <C>      <C>     <C>
Net sales                                       100.0%   100.0%  100.0%  100.0%
Cost of sales                                    72.4     80.0    73.6    77.6
                                                ------  -------  ------  ------
Gross profit                                     27.6     20.0    26.4    22.4
Selling, general and administrative expenses     25.5     27.6    27.1    27.5
Provision for product recall                      0.0     (1.2)    0.9     2.2
Provision for restructuring and consolidation     0.0      8.8     0.0     4.3
                                                ------  -------  ------  ------
Income/(Loss) from operations                     2.1    (15.2)   (1.7)  (11.6)
Interest and other expense                        2.6      2.6     2.7     2.9
                                                ------  -------  ------  ------
Loss before benefit for income taxes             (0.4)   (17.8)   (4.4)  (14.4)
Income taxes                                      0.3      6.7     1.3     5.3
                                                ------  -------  ------  ------
Net(loss)                                       (0.8)%  (11.2)%  (3.1)%  (9.1)%
                                                ======  =======  ======  ======
</TABLE>

RESULTS  OF  OPERATIONS
-----------------------

Allied  manufactures  and  markets  medical  gas  equipment,  respiratory  care
products,  and  emergency  medical  products.  Set  forth  below  is  certain
information  with  respect  to amounts (dollars in thousands) and percentages of
net  sales attributable to medical gas equipment, respiratory care products, and
emergency  medical  products.  Headwall  products  are  included  in medical gas
equipment  for  the  three  and six month periods ending December 31, 1998.  The
headwall  products  division  was  sold  on May 28, 1999.  Net sales of headwall
products  for  the  three and six month periods ended December 31, 1998 were $.9
million  and  $2.0  million  respectively.

<TABLE>
<CAPTION>
                        THREE MONTHS ENDED  THREE MONTHS ENDED
                         DECEMBER 31, 1999  DECEMBER 31, 1998

                                     % of             % of
                                     Total            Total
                              Net     Net      Net     Net
                             Sales   Sales    Sales   Sales
                            -------  ------  -------  ------
<S>                         <C>      <C>     <C>      <C>
Medical Gas Equipment       $ 8,740   52.2%  $ 9,348   54.7%
Respiratory Care Products     5,063   30.2%    5,536   32.4%
Emergency Medical Products    2,955   17.6%    2,208   12.9%
                            -------  ------  -------  ------
Total                       $16,758  100.0%  $17,092  100.0%
                            =======  ======  =======  ======
</TABLE>


                                       15
<PAGE>
<TABLE>
<CAPTION>
                           SIX MONTHS ENDED   SIX MONTHS ENDED
                           DECEMBER 31, 1999  DECEMBER 31,, 1998

                                      % of            % of
                                      Total           Total
                              Net     Net      Net     Net
                             Sales   Sales    Sales   Sales
<S>                         <C>      <C>     <C>      <C>
Medical Gas Equipment       $17,691   53.9%  $18,201   52.0%
Respiratory Care Products     9,426   28.7%   12,150   34.8%
Emergency Medical Products    5,709   17.4%    4,600   13.2%
Total                       $32,826  100.0%  $34,951  100.0%
</TABLE>

THREE  MONTHS  ENDED  DECEMBER  31,  1999  COMPARED  TO  THREE  MONTHS  ENDED
-----------------------------------------------------------------------------
DECEMBER  31,  1998.
--------------------

Certain  internal  and  external  factors  continue  to  impact  the  Company's
operations.  These factors include the oxygen regulator recall, the inability to
service  the  customer  with  acceptable  on-time  shipping  levels  of  certain
products,  and  the  ongoing impact of health care cost containment and Medicare
reimbursements.  Home  health  care  product sales, mainly the B&F product line,
continue  to  be weak due to lingering effects of the shutdown and relocation of
production  of  the  B&F  product  line to St. Louis.  The Company continues its
efforts  to  improve stocking levels of the B&F product line through outsourcing
of  labor  intensive assembly operations.  The Company believes that the ability
to  meet customer demand in a timely manner is fundamental in improving customer
satisfaction,  which  will  in  turn result in an increase in incoming business.
Management's  efforts  are therefore focused on ways to improve on-time shipping
levels  to  the  customer.

Allied  had  net  sales of $16.8 million for the three months ended December 31,
1999,  down  $0.3 million, or 1.9%, from net sales of $17.1 million in the prior
year  same  quarter. The now divested headwall business had sales of $.9 million
in  the  three months ended December 31, 1998 indicating that the Company's base
business  increased  sales by $.6 million in the quarter ended December 31, 1999
compared  to  the  prior  year  same  period.

Medical Gas Equipment sales of $8.8 million in the second quarter of fiscal 2000
were  $0.4  million  higher  than  sales  of $8.4 million in the prior year same
quarter.  Excluding $.9 million of second quarter fiscal 1999 sales from the now
divested  headwall  products  division, core medical gas product sales increased
$1.3 million, or 17%, in the first quarter of fiscal 2000 compared to prior year
first  quarter.

Respiratory  care  product  sales  in  the second quarter of fiscal 2000 of $5.1
million  were $.5 million, or 8.9%, less than sales of $5.6 million in the prior
year  same  quarter.  This  decline is primarily attributable to the B&F product
line  due  to  the  factors  discussed  above.


                                       16
<PAGE>
Emergency product sales increased $0.7 million, or 32%, from $2.2 million in the
second  quarter  of  fiscal 1999 to $2.9 million in the second quarter of fiscal
2000,  primarily  due  to  increased  shipments of brass oxygen regulators. This
increase  in  brass regulator shipments is a result of the introduction of a new
brass regulator and a trade-in program instituted due to the voluntary recall of
aluminum  oxygen  regulators  during  the  second  quarter  of  fiscal  1999  as
previously  discussed.

Gross  profit  for the three months ended December 31, 1999 was $4.6 million, or
27.6%,  of  net  sales compared to a gross profit of $3.4 million, or 20% of net
sales for the three months ended December 31, 1998. Gross profit as a percentage
of net sales for the now divested headwall products division was 31.5% and 20.4%
for  the 3 month and 6 month periods ending December 31, 1998 respectively.  The
increase  in  gross  profit  as  a  percent  of  sales is attributable to higher
manufacturing  efficiency  and  the  outsourcing  of  labor  intensive  assembly
operations  primarily  in the production of the B&F product line.  In the second
quarter  of  fiscal 1999, the B&F product line was moved to St. Louis and caused
a  reduction of manufacturing throughput.  As previously discussed, the headwall
products  division  was sold on May 28, 1999 and its results are included in the
second  quarter  of  fiscal  1999.  The  Company  will  continue  to  review its
operations  to  eliminate  inefficiencies  and  also  research opportunities for
lowering  manufacturing  and  product  costs.

Selling,  General  and  Administrative  ("SG&A")  expenses  for the three months
ended  December  31,  1999 were $4.3 million, a net decrease of $0.4 million, or
8.5%  from  $4.7  million  for  the  three months ended December 31,1998. In the
second  quarter  the  company  recorded  a  $.2 million charge to operations for
severance and related expenses to cover the cost of the previously announced 15%
work  force  reduction  estimated  to  yield  $2.6 million annualized savings in
payroll  and  benefit  costs.

Income  from  operations was $.4 million for the three months ended December 31,
1999  compared to a loss of $2.6 million for the three months ended December 31,
1998.  Interest  expense  for  both  the  second quarter of fiscal 2000 and  the
second quarter of fiscal 1999 was $.4 million.  Allied had a loss before  income
taxes  in  the  second  quarter of fiscal 2000 of $.1 million compared to a loss
before benefit for income taxes of $3.1 million for the second quarter of fiscal
1999.  The  company  recorded  a  taxes  of $.1 million in the second quarter of
fiscal  2000 compared to a tax  benefit of $1.1 million in the second quarter of
fiscal  1999.

In  fiscal  2000, the net loss for the second quarter was $0.1 million, or $0.02
per  basic  and  diluted  share  compared  to a net loss of $1.9 million for the
second  quarter  of  fiscal  1999,  or  $0.25  per basic and diluted share.  The
weighted  average number of common shares outstanding used in the calculation of
earnings  per  share for the second  quarters of fiscal 2000 and fiscal 1999 was
7,806,682.

The  LSP  brand  of  oxygen  regulator,  which is subject to voluntary recall as
previously  discussed,  is  substantially  used  by  Emergency  Medical Services
("EMS") for the administration of oxygen in the emergency environment.  To date,
all  known  fires are believed to have been confined to incidents involving EMS.
This  is presumably due to the environment in which aluminum pressure regulators


                                       17
<PAGE>
are  used  to administer oxygen in emergency situations.  Even though the recall
is  focused  on oxygen pressure regulators used in the EMS market, other markets
have  been  experiencing significant sales resistance to regulators manufactured
with  aluminum  bodies  and brass components in the high pressure chamber.  As a
result,  the Company will transition the manufacturing of aluminum bodied oxygen
pressure regulators, marketed under the B&F brand name, to one with an all-brass
design.  Accordingly,  the  Company  has recorded a $0.3 million addition to the
provision  for  product  recall  in  the  first  quarter  of fiscal year 2000 to
write-down  the  value of remaining aluminum regulator component inventories for
all  markets.

On  August  10,  1998,  the  Company announced its intention to close the Toledo
facility  of  its disposable products division and relocate the B&F product line
of  home  care  products to its St. Louis manufacturing facility.  In connection
with  the  shutdown  of  the facility, the Company recorded a one-time charge of
approximately  $1.0 million ($0.6 million after taxes), or $.07 per share during
the  first  quarter  of  fiscal 1999. Subsequently, during the second quarter of
fiscal  1999,  the  company  negotiated and received a $0.2 million cash payment
from  the  City  of  Toledo  as  partial  reimbursement  for  relocation  costs.
Accordingly,  Allied  recorded  this  cash  payment  as  a  reduction  to  the
aforementioned  provision,  in the second quarter of fiscal 1999, resulting in a
net  charge  of $0.8 million pre-tax, $0.5 million after tax, or $0.06 per share
for  the  nine  months ended September 30, 1999.  These costs were substantially
paid  during  the  second  quarter  of  fiscal  1999.




SIX  MONTHS  ENDED  DECEMBER  31, 1999 COMPARED TO SIX MONTHS ENDED DECEMBER 31,
--------------------------------------------------------------------------------
1998.
-----

Allied  had  net  sales  of  $32.8 million for the six months ended December 31,
1999,  down  $2.1 million, or 6.1%, from net sales of $35.0 million in the prior
first  six  months. The now divested headwall business had sales of $2.0 million
in  the  six  month period ending December 31,1998 indicating that the Company's
core  business  had  a sales decline of  $.1 million or .3% from the same period
prior  year.

Medical  gas  product  sales  in  the  first  six months of fiscal 2000 of $17.7
million  were  $.5  million  lower than sales of $18.2 million in the prior year
same  six  month period.  Excluding $2.0 million of first six months fiscal 1999
sales from the now divested headwall products division, core medical gas product
sales  increased  $1.5  million, or 9.3%, in the first six months of fiscal 2000
compared  to  prior  year  first  six  months.

Respiratory  care  product  sales in the first six months of fiscal 2000 of $9.4
million  were  $2.7  million,  or 22.4%, less than sales of $12.2 million in the
prior  year  same  six  month  period.  The decline in home care sales is mainly
attributable  to  the  B&F  product  line  due  to  factors  discussed  above.

Emergency  product  sales increased $1.1 million, or 24.1%, from $4.6 million in
the  first  six  month  of fiscal 1999 to $5.7 million in the first six month of
fiscal  2000,  primarily  due to increased shipments of brass oxygen regulators.
This  increase in brass regulator shipments is a result of the introduction of a
new  brass  regulator  and  a  trade-in  program instituted due to the voluntary
recall of aluminum oxygen regulators during the second quarter of fiscal 1999 as
previously  discussed.


                                       18
<PAGE>
Gross  profit  for  the six months ended December 31, 1999  was $8.7 million, or
26.4%,  of net sales compared to a gross profit of $7.8 million, or 22.4% of net
sales  for the six months ended December 31, 1998.  The increase in gross profit
as a percent of sales is attributable to higher manufacturing efficiency and the
outsourcing  of  labor intensive assembly operations primarily in the production
of  the B&F product line.  In the second quarter of fiscal 1999, the B&F product
line  was moved to St. Louis and caused a reduction of manufacturing throughput.
As previously discussed, the headwall products division was sold on May 28, 1999
and  its results are included in the second quarter of fiscal 1999.  The Company
will  continue  to  review  its  operations to eliminate inefficiencies and also
research  opportunities  for  lowering  manufacturing  and  product  costs.

Selling,  General and Administrative  ("SG&A") expenses for the six months ended
December  31,  1999  were  $8.9 million, a net decrease of $0.7 million, or 7.2%
from  $9.6  million  for  the  six  months ended December 31,1998. In the second
quarter  the  company  recorded a $.2 million charge to operations for severance
and  related  expenses  to  cover  the cost of the previously announced 15% work
force  reduction  estimated  to yield $2.6 million annualized savings in payroll
and  benefit  costs.

SG&A  expenses  in  the  first  quarter  of fiscal 2000 were impacted by certain
unusual  transactions.  The  Company  has recorded a $0.4 million charge to SG&A
expense  in the first quarter of fiscal 2000 for cumulative amounts estimated to
be  payable  by  the  Company under its self-insurance retention for legal costs
associated  with defending product liability litigation. In addition, due to the
resignation of the Company's President, Chief Executive Officer and Director Uma
Nandan Aggarwal on July 28, 1999, the Company  recorded a $0.2 million charge to
SG&A  expense  in  the first quarter of fiscal year 2000 per terms of a mutually
accepted departure agreement.  These unusual charges were offset by certain SG&A
expense  savings  that  are  a  result  of  specific events which were discussed
previously.  The  aforementioned SG&A expense savings include: 1) administrative
expense savings of $0.2 million due to the closing of the Company's Toledo, Ohio
facility,  2) $0.1 million in direct expenses generated by the divested headwall
products  division  in  the  first quarter of fiscal 1999 and 3) $0.5 million in
savings attributable to management's efforts to reduce SG&A spending in the base
business.

The  LSP  brand  of  oxygen  regulator,  which is subject to voluntary recall as
previously  discussed,  is  primarily used by Emergency Medical Services ("EMS")
for  the  administration  of  oxygen in the emergency environment.  To date, all
known  fires are believed to have been confined to incidents involving EMS. This
is  presumably  due to the environment in which aluminum pressure regulators are
used.  Even  though  the recall is focused on oxygen pressure regulators used in
the  EMS  market,  other  markets  have  been  experiencing  significant  sales
resistance  to regulators manufactured with aluminum bodies and brass components
in  the  high  pressure  chamber.  As  a result, the Company will transition the
manufacturing  of aluminum bodied oxygen pressure regulators, marketed under the
B&F  brand  name, to one with an all-brass design.  Accordingly, the Company has
recorded  a  $0.3  million  addition  to the provision for product recall in the
first  quarter of fiscal year 2000 to write-down the value of remaining aluminum
regulator  component  inventories  for  all  markets.


                                       19
<PAGE>
On  August  10,  1998,  the  Company announced its intention to close the Toledo
facility  of  its disposable products division and relocate the B&F product line
of  home  care  products to its St. Louis manufacturing facility.  In connection
with  the  shutdown  of  the facility, the Company recorded a one-time charge of
approximately  $1.0 million ($0.6 million after taxes), or $.07 per share during
the  first  quarter  of  fiscal 1999. Subsequently, during the second quarter of
fiscal  1999,  the  company  negotiated and received a $0.2 million cash payment
from  the  City  of  Toledo  as  partial  reimbursement  for  relocation  costs.
Accordingly,  Allied  recorded  this  cash  payment  as  a  reduction  to  the
aforementioned  provision,  in the second quarter of fiscal 1999, resulting in a
net  charge  of $0.8 million pre-tax, $0.5 million after tax, or $0.06 per share
for  the  nine  months ended September 30, 1999.  These costs were substantially
paid  during  the  second  quarter  of  fiscal  1999.


Loss  from operations was $.6 million for the six months ended December 31, 1999
compared  to  a loss of $4.0 million for the six months ended December 31, 1998.
Interest  expense  for  the  six  months ended December 31, 1999 was $.9 million
compared  to  $1.0  million  in  the  six  month period ending December 31,1998.
Allied  had  a  loss before  benefit for income taxes in the first six months of
fiscal  2000  of $1.4 million compared to a loss before benefit for income taxes
of  $5.0 million for the first six months of  fiscal 1999.  The company recorded
a  tax benefit of $.4 million in the first six months of fiscal 2000 compared to
a  tax  benefit  of  $1.9  million  in  the  six month period of the prior year.

In fiscal 2000, the net loss for the first six months was $1.0 million, or $0.13
per basic and diluted share compared to a net loss of $3.2 million for the first
six  months  of fiscal 1999, or $0.41 per basic and diluted share.  The weighted
average  number of common shares outstanding used in the calculation of earnings
per  share  for  fiscal  2000  and  fiscal  1999  was  7,806,682.


                                       20
<PAGE>
FINANCIAL  CONDITION
--------------------

The  following  table  sets  forth  selected  information  concerning  Allied's
financial  condition:

<TABLE>
<CAPTION>
Dollars in thousands:  December 30, 1999   June 30, 1999
---------------------  ------------------  --------------
<S>                    <C>                 <C>
Cash                   $              393  $          587
Working Capital        $           22,210  $       22,619
Total Debt             $           16,288  $       17,238
Current Ratio                      3.63:1          3.30:1
</TABLE>

The Company's working capital was $22.2 million at December 31, 1999 compared to
$22.6  million  at  June  30,  1999.  A  decrease  in  accounts  receivable  and
inventory,  coupled  with  an  increase in the current portion of long term debt
that  were not completely offset by increases in deferred income taxes and other
current  assets  and decreases in accounts payable and other current liabilities
account  for  the  decrease in working capital. Accounts receivable decreased to
$10.6  million  at  December  31,  1999  from  $12.6  million  at June 30, 1999,
primarily due to decreased sales.  Accounts receivable as measured in days sales
outstanding  ("DSO")  at  62  days  was  same  as at June 30, 1999.  Inventories
decreased  to  $17.2  million  from  $17.5  million  at  June  30,  1999.

The net decrease in cash for the six months ended December 31, 1999 and December
31,  1998  was  $0.2  million and $.5 million respectively. Net cash provided by
operations was $0.9 million and $1.3 million for the same periods, respectively.
Cash provided by operations for the six months ended December 31, 1999 consisted
of  a  net  loss  of  $1.0  million,  which  was  offset  by non-cash charges to
operations  of $1.8 million for depreciation and amortization, as well a changes
in  working  capital  accounts which provided $.2 million. The change in working
capital  was  comprised  of  reductions  in accounts receivable of $1.9 million,
inventory  of  $.3  million and an increase in income taxes payable $.2 million.
These  favorable  cash  adjustments  were  partially off set by reduced accounts
receivable  $1.1  million,  a decrease in other current assets of $.2 million an
increase  in the deferred income tax account $.4 million and a decrease in other
current  liabilities  $.5 million. Cash provided by operations in the prior year
same  period  consisted of a net loss of $3.2 million which was partially offset
by  non-cash  charges  to  operations  of  $2.0  million  for  depreciation  and
amortization,  as well as changes in working capital accounts which provided $.7
million.  The  change in working capital was comprised of reductions in accounts
receivable  of  $1.5 million, inventory of $1.3 million, other current assets of
$.1 million, and an increase in accounts payable of $.2 million. These favorable
cash  adjustment  were  partially  offset by a net change in deferred income tax
accounts  of  $1.9  million  and  a  reduction  in  other current liabilities of
$.5million.  In  addition  , cash provided by operating activities was favorably
impacted  by  the  $1.5million  accrual  for  product  recall,  as  discussed
previously,  and  by  the  $.3  million  non  cash  portion of the provision for
restructuring  related  to  the  relocation of the B&F product line from Toledo,
Ohio  to  St.  Louis,  Missouri.

On  August  7,  1998,  the  Company obtained a $5.0 million mortgage loan on its
principal  facility  in  St.  Louis, Missouri from LaSalle National Bank.  Under
terms  of  this  agreement  the Company will make monthly principal and interest
payments,  with  a  balloon  payment in 2003.  Proceeds of the loan were used to
reduce the obligation under the revolving credit agreement with Foothill Capital
Corporation.  The  mortgage  loan  carries  a  fixed  rate of interest of 7.75%.


                                       21
<PAGE>
On  September  8,  1998,  the  Company's credit facilities with Foothill Capital
Corporation  were  amended.  The Company's existing term loan was eliminated and
replaced  with  an amended revolving credit facility.  As amended, the revolving
credit  facility  remained  at $25.0 million.  The interest rate on the facility
has  been  reduced  from the floating reference rate (7.75% at January 31, 1999)
plus  0.50%  to  the  floating reference rate plus 0.25%.  The reference rate as
defined  in  the  credit agreement, is the variable rate of interest, per annum,
most  recently announced by Norwest Bank Minnesota, National Association, or any
successor thereto, as its "base" rate.  This amendment also provides the Company
with  a  rate  of  LIBOR  +2.5%.

On  June  28,  1999,  the  Company's  credit  facilities  with  Foothill Capital
Corporation  were  amended.  The  amendment provides for favorable interest rate
reduction, based upon annual profitability, for fiscal years 2001 and 2002.  The
amendment  also  extended  the  maturity  date  to  January 6, 2003 along with a
favorable  change  to  certain  debt  covenants.

On  September  1,  1999 the Company's credit facility with LaSalle National Bank
was  amended.  The  amendment  provides  favorable  changes  to  certain  debt
covenants.

Inflation  has not had a material effect on the Company's business or results of
operations.


YEAR  2000
----------

All  critical  systems  were  year  2000  compliant  at  December  31,  1999.

The  Company  did not separately distinguish between costs incurred specifically
to  assure  year  2000  compliance and normal expenditures needed to maintain or
upgrade  systems.  The  company  believes  that any such costs expended were not
material.

The  Company  is  dependent  on  various  third  parties to conduct its business
operations.  These  third  parties are customers and vendors of raw material and
components  used  in  the  production  process.  The  Company's revenues are not
dependent  upon any single or any few numbers of customers.  The company employs
large number of vendors, without concentration of critical vendors.  None of the
Company's  products  or  components uses date sensitive technology.  To date the
company has not experienced any costs or business interruptions due to year 2000
problems.  The  Company does not anticipate any Year 2000 problems will occur in
the  future  but  it is maintaining its contingency planning and resources at an
appropriate  level


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PART  II.     OTHER  INFORMATION
              ------------------

Item  6.     Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits:

     (27)     Financial  Data  Schedule

(b)     Reports  on  Form  8-K  -  none


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                                    SIGNATURE

     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.

                         ALLIED  HEALTHCARE  PRODUCTS,  INC.



                              /s/ Earl R. Refsland
                                Earl R. Refsland
                      President and Chief Executive Officer
                      -------------------------------------


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