Contact:
            Daniel
      C. Dunn


Chief Financial
Officer


314/771-2400





Allied
Healthcare Products Returns to Profitability


By
Offsetting Depressed Sales with Cost Reductions





ST.
LOUIS, February 8, 2010 – Cost reductions offset a recession-driven sales
decline to move Allied Healthcare Products (NASDAQ: AHPI) narrowly back into
profitability in the second quarter of fiscal year 2010.




Sales for the quarter ended December
31, 2009 declined almost 9 percent, from approximately $12.5 million during the
same quarter last year to $11.4 million in the current quarter. However,
Allied’s costs of sales were reduced even more sharply, from approximately $9.8
million to less than $8.5 million, or almost 14 percent.  Also,
selling, general, and administrative costs for the quarter were reduced to $2.9
million from $3.4 million, a reduction of almost 15 percent.  The
result was a break-even quarter with net income of about $22,000, equating to
zero cents per share, versus a loss of $436,000, or negative six cents per share
in the same quarter last year.




Cost reductions were achieved
throughout the company, including operations, personnel and other
overhead.




Allied’s sales in U.S. markets for
hospital and emergency equipment have been particularly hard hit by
recession-driven budget cuts by hospitals and municipalities.  “At
some point, this basic equipment must be replaced, so sales in these markets are
expected to return to normal levels.  What we do not, and cannot, know
is when that will be,” said Earl Refsland, Allied president and chief executive
officer.









In the meantime, Allied has made
preparations to begin manufacturing a formerly outsourced product in the second
half of fiscal 2010, realizing a significant new cost reduction, Refsland
said.




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,
emergency medical products and mass casualty ventilators.  Allied’s
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.





##











ALLIED
HEALTHCARE PRODUCTS, INC.


CONSOLIDATED
STATEMENT OF OPERATIONS


(UNAUDITED)





Three
      months ended,
                                                                    
                                                                    
                                                                    Six
      months ended,December
      31,
                                                                    
                                                                    
                                                                    December
      31,2009
                                                                    
                                                                    
                                                                    2008
                                                                    
                                                                    
                                                                    2009
                                                                    
                                                                    
                                                                    2008Net
      sales
                                                                    
                                                                    $
                                                                    11,414,908
                                                                    
                                                                    
                                                                    $
                                                                    12,531,342
                                                                    
                                                                    
                                                                    $
                                                                    22,738,584
                                                                    
                                                                    
                                                                    $
                                                                    26,972,353Cost
      of sales
                                                                    
                                                                    
                                                                    8,470,169
                                                                    
                                                                    
                                                                    
                                                                    9,821,746
                                                                    
                                                                    
                                                                    
                                                                    17,390,969
                                                                    
                                                                    
                                                                    
                                                                    20,761,703Gross
      profit
                                                                    
                                                                    
                                                                    2,944,739
                                                                    
                                                                    
                                                                    
                                                                    2,709,596
                                                                    
                                                                    
                                                                    
                                                                    5,347,615
                                                                    
                                                                    
                                                                    
                                                                    6,210,650Selling
      General and administrative expenses
                                                                    
                                                                    
                                                                    2,900,113
                                                                    
                                                                    
                                                                    
                                                                    3,400,342
                                                                    
                                                                    
                                                                    
                                                                    6,491,891
                                                                    
                                                                    
                                                                    
                                                                    6,583,929Income
      (loss) from operations
                                                                    
                                                                    
                                                                    44,626
                                                                    
                                                                    
                                                                    
                                                                    (690,746
                                                                    )
                                                                    
                                                                    
                                                                    (1,144,276
                                                                    )
                                                                    
                                                                    
                                                                    (373,279
                                                                    )Interest
      income
                                                                    
                                                                    
                                                                    (464
                                                                    )
                                                                    
                                                                    
                                                                    (18,455
                                                                    )
                                                                    
                                                                    
                                                                    (1,448
                                                                    )
                                                                    
                                                                    
                                                                    (49,114
                                                                    )Interest
      expense
                                                                    
                                                                    
                                                                    162
                                                                    
                                                                    
                                                                    
                                                                    5,849
                                                                    
                                                                    
                                                                    
                                                                    2,574
                                                                    
                                                                    
                                                                    
                                                                    5,849Other,
      net
                                                                    
                                                                    
                                                                    11,785
                                                                    
                                                                    
                                                                    
                                                                    11,112
                                                                    
                                                                    
                                                                    
                                                                    22,798
                                                                    
                                                                    
                                                                    
                                                                    23,17911,483
                                                                    
                                                                    
                                                                    
                                                                    (1,494
                                                                    )
                                                                    
                                                                    
                                                                    23,924
                                                                    
                                                                    
                                                                    
                                                                    (20,086
                                                                    )Income
      (loss) before provision for(benefit
      from) income taxes
                                                                    
                                                                    
                                                                    33,143
                                                                    
                                                                    
                                                                    
                                                                    (689,252
                                                                    )
                                                                    
                                                                    
                                                                    (1,168,200
                                                                    )
                                                                    
                                                                    
                                                                    (353,193
                                                                    )Provision
      for (benefit from) income taxes
                                                                    
                                                                    
                                                                    11,573
                                                                    
                                                                    
                                                                    
                                                                    (253,158
                                                                    )
                                                                    
                                                                    
                                                                    (444,832
                                                                    )
                                                                    
                                                                    
                                                                    (125,456
                                                                    )Net
      income (loss)
                                                                    
                                                                    $
                                                                    21,570
                                                                    
                                                                    
                                                                    $
                                                                    (436,094
                                                                    )
                                                                    
                                                                    $
                                                                    (723,368
                                                                    )
                                                                    
                                                                    $
                                                                    (227,737
                                                                    )Net
      income (loss) per share - Basic and diluted
                                                                    
                                                                    $
                                                                    0.00
                                                                    
                                                                    
                                                                    $
                                                                    (0.06
                                                                    )
                                                                    
                                                                    $
                                                                    (0.09
                                                                    )
                                                                    
                                                                    $
                                                                    (0.03
                                                                    )Weighted
      average common sharesOutstanding
      - Basic
                                                                    
                                                                    
                                                                    8,092,734
                                                                    
                                                                    
                                                                    
                                                                    7,901,327
                                                                    
                                                                    
                                                                    
                                                                    8,040,528
                                                                    
                                                                    
                                                                    
                                                                    7,896,279Weighted
      average common sharesOutstanding
      - Diluted
                                                                    
                                                                    
                                                                    8,217,103
                                                                    
                                                                    
                                                                    
                                                                    7,901,327
                                                                    
                                                                    
                                                                    
                                                                    8,040,528
                                                                    
                                                                    
                                                                    
                                                                    7,896,279










ALLIED
HEALTHCARE PRODUCTS, INC.


CONSOLIDATED
BALANCE SHEET


(UNAUDITED)





December 31, 2009
                                        
                                        
                                        June 30, 2009ASSETSCurrent
      assets:Cash
      and cash equivalents
                                        
                                        $
                                        2,492,160
                                        
                                        
                                        $
                                        1,943,364Accounts
      receivable, net of allowancesof
      $300,000
                                        
                                        
                                        5,283,980
                                        
                                        
                                        
                                        6,172,437Inventories,
      net
                                        
                                        
                                        12,736,488
                                        
                                        
                                        
                                        12,663,938Income
      tax receivable
                                        
                                        
                                        1,653,573
                                        
                                        
                                        
                                        937,273Other
      current assets
                                        
                                        
                                        308,451
                                        
                                        
                                        
                                        327,203Total
      current assets
                                        
                                        
                                        22,474,652
                                        
                                        
                                        
                                        22,044,215Property,
      plant and equipment, net
                                        
                                        
                                        10,209,764
                                        
                                        
                                        
                                        10,799,089Other
      assets, net
                                        
                                        
                                        189,132
                                        
                                        
                                        
                                        390,627Total
      assets
                                        
                                        $
                                        32,873,548
                                        
                                        
                                        $
                                        33,233,931LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable
                                        
                                        $
                                        2,315,688
                                        
                                        
                                        $
                                        1,633,568Other
      accrued liabilities
                                        
                                        
                                        1,880,039
                                        
                                        
                                        
                                        2,316,558Deferred
      income taxes
                                        
                                        
                                        168,136
                                        
                                        
                                        
                                        419,213Deferred
      revenue
                                        
                                        
                                        688,200
                                        
                                        
                                        
                                        688,200Total
      current liabilities
                                        
                                        
                                        5,052,063
                                        
                                        
                                        
                                        5,057,539Deferred
      revenue
                                        
                                        
                                        1,147,000
                                        
                                        
                                        
                                        1,491,100Commitments
      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;
      10,396,878 and 10,204,819 shares issuedat
      December 31, 2009 and June 30, 2009, respectively;8,093,386
      and 7,901,327 shares outstanding atDecember
      31, 2009 and June 30, 2009, respectively
                                        
                                        
                                        103,969
                                        
                                        
                                        
                                        102,048Additional
      paid-in capital
                                        
                                        
                                        48,342,689
                                        
                                        
                                        
                                        47,632,049Accumulated
      deficit
                                        
                                        
                                        (1,040,745
                                        )
                                        
                                        
                                        (317,377
                                        )Less
      treasury stock, at cost; 2,303,492 shares atDecember
      31, 2009 and June 30, 2009, respectively
                                        
                                        
                                        (20,731,428
                                        )
                                        
                                        
                                        (20,731,428
                                        )Total
      stockholders' equity
                                        
                                        
                                        26,674,485
                                        
                                        
                                        
                                        26,685,292Total
      liabilities and stockholders' equity
                                        
                                        $
                                        32,873,548
                                        
                                        
                                        $
                                        33,233,931