Exhibit
99.1








Contact:  Daniel
C. Dunn


Chief
Financial Officer


314/771-2400





Allied
Healthcare Products Offsets Sales Declines


With
Cost Reductions for Break-Even Quarter





ST.
LOUIS, May 7, 2010 – Budget constraints for hospitals and municipalities
continued to depress sales for Allied Healthcare Products, Inc. (NASDAQ: AHPI)
but the company managed to improve its third quarter results over last year’s
performance by reducing overhead and operating costs.




Sales for the quarter ending March 31,
2010, fell about 6 percent, from about $12.4 million to $11.6 million in the
current quarter.  However, Allied reduced its cost of sales even more
in the quarter, from approximately $9.9 million to less than $8.8 million, or
more than 11 percent.  Allied also managed to cut its selling, general
and administrative costs for the quarter from almost $3.2 million to $2.7
million, or more than 15 percent.




As a result, Allied earned net income
of about $37,500, equating to zero cents per share, compared to a loss of
$450,000, or negative 6 cents per share, in the same quarter last
year.




Cost controls also enabled the company
to increase its profit margins and improve its cash position for the
quarter.




For the nine-month period ending March
31, Allied sales declined by almost 13 percent, from about $39.4 million to
$34.4 million in the current period.  Net income for the two
nine-month periods remained virtually flat at approximately a negative $686,000,
or negative 9 cents per share, for the current period versus a negative
$678,000, also equating to a negative 9 cents per share, for the previous
year.





“Allied
is not losing sales to competitors,” said Earl Refsland, Allied president and
chief executive officer.  “We’re losing sales to recession-driven
budget reductions by hospitals and state and local governments.




“When our
markets return to more normal levels, Allied has built a strong cost position
that will drive increased profits,” 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 products 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,
                                                  
                                                  
                                                  Nine
      months ended,March
      31,
                                                  
                                                  
                                                  March
      31,2010
                                                  
                                                  
                                                  2009
                                                  
                                                  
                                                  2010
                                                  
                                                  
                                                  2009Net
      sales
                                                  
                                                  $
                                                  11,627,418
                                                  
                                                  
                                                  $
                                                  12,389,640
                                                  
                                                  
                                                  $
                                                  34,366,002
                                                  
                                                  
                                                  $
                                                  39,361,993Cost
      of sales
                                                  
                                                  
                                                  8,781,739
                                                  
                                                  
                                                  
                                                  9,915,884
                                                  
                                                  
                                                  
                                                  26,172,709
                                                  
                                                  
                                                  
                                                  30,677,586Gross
      profit
                                                  
                                                  
                                                  2,845,679
                                                  
                                                  
                                                  
                                                  2,473,756
                                                  
                                                  
                                                  
                                                  8,193,293
                                                  
                                                  
                                                  
                                                  8,684,407Selling
      General and administrative expenses
                                                  
                                                  
                                                  2,705,644
                                                  
                                                  
                                                  
                                                  3,198,135
                                                  
                                                  
                                                  
                                                  9,197,535
                                                  
                                                  
                                                  
                                                  9,782,064Income
      (loss) from operations
                                                  
                                                  
                                                  140,035
                                                  
                                                  
                                                  
                                                  (724,379
                                                  )
                                                  
                                                  
                                                  (1,004,242
                                                  )
                                                  
                                                  
                                                  (1,097,657
                                                  )Interest
      income
                                                  
                                                  
                                                  (2,956
                                                  )
                                                  
                                                  
                                                  (5,041
                                                  )
                                                  
                                                  
                                                  (4,403
                                                  )
                                                  
                                                  
                                                  (54,155
                                                  )Interest
      expense
                                                  
                                                  
                                                  190
                                                  
                                                  
                                                  
                                                  0
                                                  
                                                  
                                                  
                                                  2,764
                                                  
                                                  
                                                  
                                                  5,849Other,
      net
                                                  
                                                  
                                                  80,791
                                                  
                                                  
                                                  
                                                  13,403
                                                  
                                                  
                                                  
                                                  103,588
                                                  
                                                  
                                                  
                                                  36,58378,025
                                                  
                                                  
                                                  
                                                  8,362
                                                  
                                                  
                                                  
                                                  101,949
                                                  
                                                  
                                                  
                                                  (11,723
                                                  )Income
      (loss) before provision for(benefit from) income
      taxes
                                                  
                                                  
                                                  62,010
                                                  
                                                  
                                                  
                                                  (732,741
                                                  )
                                                  
                                                  
                                                  (1,106,191
                                                  )
                                                  
                                                  
                                                  (1,085,934
                                                  )Provision
      for (benefit from) income taxes
                                                  
                                                  
                                                  24,480
                                                  
                                                  
                                                  
                                                  (282,469
                                                  )
                                                  
                                                  
                                                  (420,353
                                                  )
                                                  
                                                  
                                                  (407,925
                                                  )Net
      income (loss)
                                                  
                                                  $
                                                  37,530
                                                  
                                                  
                                                  $
                                                  (450,272
                                                  )
                                                  
                                                  $
                                                  (685,838
                                                  )
                                                  
                                                  $
                                                  (678,009
                                                  )Net
      income (loss) per share - Basic
                                                  
                                                  $
                                                  0.00
                                                  
                                                  
                                                  $
                                                  (0.06
                                                  )
                                                  
                                                  $
                                                  (0.09
                                                  )
                                                  
                                                  $
                                                  (0.09
                                                  )Net
      income (loss) per share - Diluted
                                                  
                                                  $
                                                  0.00
                                                  
                                                  
                                                  $
                                                  (0.06
                                                  )
                                                  
                                                  $
                                                  (0.09
                                                  )
                                                  
                                                  $
                                                  (0.09
                                                  )Weighted
      average common sharesOutstanding - Basic
                                                  
                                                  
                                                  8,093,386
                                                  
                                                  
                                                  
                                                  7,901,327
                                                  
                                                  
                                                  
                                                  8,057,890
                                                  
                                                  
                                                  
                                                  7,897,937Weighted
      average common sharesOutstanding - Diluted
                                                  
                                                  
                                                  8,183,907
                                                  
                                                  
                                                  
                                                  7,901,327
                                                  
                                                  
                                                  
                                                  8,057,890
                                                  
                                                  
                                                  
                                                  7,897,937








ALLIED
HEALTHCARE PRODUCTS, INC.


CONSOLIDATED
BALANCE SHEET


(UNAUDITED)





March 31, 2010
                                          
                                          
                                          June 30, 2009ASSETSCurrent
      assets:Cash
      and cash equivalents
                                          
                                          $
                                          3,273,496
                                          
                                          
                                          $
                                          1,943,364Accounts
      receivable, net of allowancesof
      $300,000
                                          
                                          
                                          5,371,848
                                          
                                          
                                          
                                          6,172,437Inventories,
      net
                                          
                                          
                                          11,968,396
                                          
                                          
                                          
                                          12,663,938Income
      tax receivable
                                          
                                          
                                          1,634,370
                                          
                                          
                                          
                                          937,273Other
      current assets
                                          
                                          
                                          270,340
                                          
                                          
                                          
                                          327,203Total
      current assets
                                          
                                          
                                          22,518,450
                                          
                                          
                                          
                                          22,044,215Property,
      plant and equipment, net
                                          
                                          
                                          10,040,867
                                          
                                          
                                          
                                          10,799,089Other
      assets, net
                                          
                                          
                                          186,069
                                          
                                          
                                          
                                          390,627Total
      assets
                                          
                                          $
                                          32,745,386
                                          
                                          
                                          $
                                          33,233,931LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable
                                          
                                          $
                                          2,140,610
                                          
                                          
                                          $
                                          1,633,568Other
      accrued liabilities
                                          
                                          
                                          2,055,459
                                          
                                          
                                          
                                          2,316,558Deferred
      income taxes
                                          
                                          
                                          164,125
                                          
                                          
                                          
                                          419,213Deferred
      revenue
                                          
                                          
                                          688,200
                                          
                                          
                                          
                                          688,200Total
      current liabilities
                                          
                                          
                                          5,048,394
                                          
                                          
                                          
                                          5,057,539Deferred
      revenue
                                          
                                          
                                          974,950
                                          
                                          
                                          
                                          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
      March 31, 2010 and June 30, 2009, respectively;8,093,386
      and 7,901,327 shares outstanding atMarch
      31, 2010 and June 30, 2009, respectively
                                          
                                          
                                          103,969
                                          
                                          
                                          
                                          102,048Additional
      paid-in capital
                                          
                                          
                                          48,352,716
                                          
                                          
                                          
                                          47,632,049Retained
      earnings
                                          
                                          
                                          (1,003,215
                                          )
                                          
                                          
                                          (317,377
                                          )Less
      treasury stock, at cost; 2,303,492 shares atMarch
      31, 2010 and June 30, 2009, respectively
                                          
                                          
                                          (20,731,428
                                          )
                                          
                                          
                                          (20,731,428
                                          )Total
      stockholders' equity
                                          
                                          
                                          26,722,042
                                          
                                          
                                          
                                          26,685,292Total
      liabilities and stockholders' equity
                                          
                                          $
                                          32,745,386
                                          
                                          
                                          $
                                          33,233,931