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  September  30,  1998

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

     For  the  transition  period  from  to  _____________ 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 November 4, 1998 is
7,806,682  shares.

<PAGE>
<TABLE>
<CAPTION>
                            INDEX

                                                          Page
Part I - Financial Information                           Number
<S>                                                      <C>

Item 1.   Financial Statements

          Consolidated Statement of Operations                3
          three months ended September 30, 1998
          and 1997 (Unaudited)

          Consolidated Balance Sheets -                     4-5
          September 30, 1998 (Unaudited) and
          June 30, 1998

          Consolidated Statements of Cash Flow              6-7
          three months ended September 30, 1998
          and 1997 (Unaudited)

          Consolidated Statement of Changes in                8
          Stockholders' Equity for three months ended
          September 30, 1998 (Unaudited)

          Notes to Consolidated Financial Statements       9-11

Item 2.   Management's Discussion and Analysis of         12-21
          Financial Condition and Results of Operations

Part II - Other Information

Item 6.   Exhibits and Reports on Form 8-K                   22

          Signature                                          23
</TABLE>

                                        2
<PAGE>
PART  I.   FINANCIAL  INFORMATION

ITEM  1.   FINANCIAL  STATEMENTS

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

                                                                  Three months ended
                                                                     September 30,
                                                              ---------------------------
                                                                   1998          1997 
                                                              -------------  ------------
<S>                                                           <C>            <C>
Net sales                                                     $ 17,859,103   $30,172,904 
Cost of sales                                                   13,452,490    20,943,624 
Gross profit                                                     4,406,613     9,229,280 

Selling, general and administrative expenses                     4,877,348     7,252,587 
Provision for restructuring and consolidation                      972,850             0 
                                                              -------------  ------------
Income (loss) from operations                                   (1,443,585)    1,976,693 

Other expenses:
  Interest expense                                                 533,664     1,859,819 
  Other, net                                                        18,946        46,939 
                                                              -------------  ------------
                                                                   552,610     1,906,758 
                                                              -------------  ------------
Income (loss) before provision
  (benefit) for income taxes and
  extraordinary loss                                            (1,996,195)       69,935 
Provision (benefit) for income taxes                              (716,938)      177,123 
                                                              -------------  ------------
Loss before extraordinary loss                                  (1,279,257)     (107,188)

Extraordinary loss on early
  extinguishment of debt, net of
  income tax benefit of $373,191                                         0       530,632 

                                                              -------------  ------------
Net Loss                                                       ($1,279,257)    ($637,820)
                                                              =============  ============

Basic and diluted loss per share:
  Loss before extraordinary loss                                    ($0.16)       ($0.01)
  Extraordinary loss                                                   ---         (0.07)
                                                              -------------  ------------
  Net Loss                                                          ($0.16)       ($0.08)
                                                              =============  ============

Weighted average shares                                          7,806,682     7,800,095 
                                                              =============  ============

See accompanying Notes to Consolidated Financial Statements.
</TABLE>

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

                                                             Sept. 30,     June 30,
                                                               1998         1998
                                                           ------------  -----------
                                                            (Unaudited)
<S>                                                        <C>           <C>
Current Assets:
   Cash                                                    $    650,983  $ 1,194,813
   Accounts receivable, net of allowance for doubtful
      accounts of $1,087,896 and $1,035,833, respectively    12,965,716   14,227,314
   Inventories                                               17,241,347   18,341,340
   Other current assets                                         354,384      273,832

                                                           ------------  -----------
      Total current assets                                   31,212,430   34,037,299
                                                           ------------  -----------

   Property, plant and equipment, net                        16,898,474   17,525,906
   Goodwill, net                                             27,822,212   28,026,064
   Other assets, net                                            530,582      590,933

                                                           ------------  -----------
      Total assets                                         $ 76,463,698  $80,180,202
                                                           ============  ===========

          See accompanying Notes To Consolidated Financial Statements.
</TABLE>

                                   (CONTINUED)

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

                                                                  Sept. 30,       June 30,
                                                                    1998           1998 
                                                                -------------  -------------
                                                                 (Unaudited)
<S>                                                             <C>            <C>
Current liabilities:
   Accounts payable                                             $  5,404,310   $  5,807,349 
   Current portion of long-term debt                               1,016,533      3,442,797 
   Accrual for restructuring and consolidation                       614,008              0 
   Other current liabilities                                       2,468,524      3,479,215 

                                                                -------------  -------------
      Total current liabilities                                    9,503,375     12,729,361 
                                                                -------------  -------------

Long-term debt                                                    15,760,514     14,971,775 

Deferred income tax liability-noncurrent                             441,589        441,589 

Commitments and contingencies

Stockholders' equity:
   Preferred stock; $.01 par value; 1,500,000 shares
    authorized; no shares issued and outstanding; which
    includes 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 September 30, 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)
   Retained earnings                                              24,373,925     25,653,182 

                                                                -------------  -------------
      Total stockholders' equity                                  50,758,220     52,037,477 

                                                                -------------  -------------
      Total liabilities and stockholders' equity                $ 76,463,698   $ 80,180,202 
                                                                =============  =============

See accompanying Notes To Consolidated Financial Statements.
</TABLE>

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

                                                                Three months ended
                                                                   September 30,
                                                            -------------------------
                                                                1998         1997 
                                                            ------------  -----------
<S>                                                         <C>           <C>
Cash flows from operating activities:
   Net loss                                                 ($1,279,257)   ($637,820)
   Adjustments to reconcile net loss to net
       cash provided by (used in) operating activities:

      Depreciation and amortization                           1,038,334    1,339,043 
      Provision for restructuring and consolidation             827,738            0 
      Loss on refinancing of long-term debt                           0      903,823 
      Decrease (increase) in accounts receivable, net         1,261,598     (907,018)
      Decrease in inventories                                 1,099,993    1,528,532 
      (Increase) decrease in other current assets               (80,552)      48,112 
      Decrease in accounts payable                             (403,039)  (2,834,481)
      Decrease in accrued income taxes                         (721,186)    (147,500)
      Decrease in other current liabilities                    (289,505)  (1,095,815)

                                                            ------------  -----------
       Net cash provided by (used in) operating activities    1,454,124   (1,803,124)
                                                            ------------  -----------


Cash flows from investing activities:
   Capital expenditures, net                                   (358,679)    (135,282)
                                                            ------------  -----------

       Net cash used in investing activities                   (358,679)    (135,282)
                                                            ------------  -----------
</TABLE>

                                   (CONTINUED)

                                        6
<PAGE>
<TABLE>
<CAPTION>
                            ALLIED HEALTHCARE PRODUCTS, INC.
                          CONSOLIDATED STATEMENT OF CASH FLOWS
                                       (CONTINUED)
                                       (UNAUDITED)

                                                                 Three months ended
                                                                    September 30,
                                                            ----------------------------
                                                                 1998           1997 
                                                            -------------  -------------
<S>                                                         <C>            <C>
Cash flows from financing activities:
   Proceeds from issuance of long-term debt                    5,000,000     26,000,000 
   Payments of long-term debt                                 (6,008,240)   (16,341,599)
   Borrowings under revolving credit agreement                24,880,849     40,502,205 
   Payments under revolving credit agreement                 (25,510,134)   (47,679,335)
   Issuance of common stock                                            0         68,750 
   Debt issuance costs                                            (1,750)      (720,968)

                                                            -------------  -------------
       Net cash provided by (used in) financing activities    (1,639,275)     1,829,053 
                                                            -------------  -------------

   Net decrease in cash and equivalents                         (543,830)      (109,353)
   Cash and equivalents at beginning of period                 1,194,813        988,436 

                                                            -------------  -------------
   Cash and equivalents at end of period                    $    650,983   $    879,083 
                                                            =============  =============


Supplemental disclosures of cash flow information:
   Cash paid during the period for:
       Interest                                             $    621,945   $  2,281,473 
       Income taxes                                         $      8,941   $      2,118 
</TABLE>

          See accompanying Notes To Consolidated Financial Statements.

                                        7
<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, 1998  $        0  $101,102  $47,014,621  ($20,731,428)  $25,653,182 

Net loss for the
   three months ended
   September 30, 1998                                                      (1,279,257)

                        ----------  --------  -----------  -------------  ------------
Balance,
   September 30, 1998   $        0  $101,102  $47,014,621  ($20,731,428)  $24,373,925 
                        ==========  ========  ===========  =============  ============
</TABLE>

          See accompanying Notes To Consolidated Financial Statements.

                                        8
<PAGE>
                        ALLIED HEALTHCARE PRODUCTS, INC.
                    NOTE 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, 1998.

2.     Inventories

     Inventories  are  comprised  as  follows:

<TABLE>
<CAPTION>
                  September 30, 1998    June 30, 1998
                           (Unaudited)
<S>               <C>                   <C>
Work-in progress  $          1,354,225  $    2,424,041
Component Parts             13,667,546      14,820,526
Finished Goods               2,219,576       1,096,773
                  --------------------  --------------
                  $         17,241,347  $   18,341,340
                  ====================  ==============
</TABLE>

The  above  amounts  are  net  of a reserve for obsolete and excess inventory of
approximately  $2.0  million and $2.2 million at September 30, 1998 and June 30,
1998,  respectively.

                                        9
<PAGE>
3.     Debt  Refinancing

     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
interest payments of $60,005, with a final payment of all principal and interest
remaining  unpaid due at maturity on August 1, 2003.  Interest is fixed at 7.75%
per  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.

     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 (8.25% at October 23, 1998) 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%.
Interest  rates on the reference rate and LIBOR will drop by 0.25% at the end of
fiscal  1999  and  2000  if  the  company  is profitable.  In addition, the fees
charged  to  the  company  are  also  reduced.

4.     B&F  Relocation  provision

     On  August  5,  1998  the  Company's  board of directors voted to close the
Toledo  facility  of  its  disposable  products  division  (DPD)  and  relocate
production  of  the B&F line of home care products to its manufacturing facility
in  St. Louis, Missouri. This move was announced on August 10, 1998. The move is
expected  to  be  completed  during  the  second  quarter  of  fiscal  1999.  In
connection with the shutdown of the facility, Allied has recorded a provision of
approximately  $1.0 million pre-tax, $0.6 million after-tax, or $0.07 per share,
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.   Significant portions of the pre-tax costs are expected to be paid
prior  to  January  1,  1999.

                                       10
<PAGE>
     Costs  for  the  provision  are  categorized  as  follows:

<TABLE>
<CAPTION>
                            Fiscal
                             Year
                             1999
<S>                        <C>
Noncash asset impairments  $213,730
Employee severance costs    400,289
Other exit costs            358,831
                           --------
                           $972,850
                           ========
</TABLE>

     A  reconciliation  of  activity with respect to the Company's restructuring
and  consolidation  of  the  B&F  product  line  is  as  follows:

<TABLE>
<CAPTION>
<S>                                      <C>
Provision, first quarter of fiscal 1999  $ 972,850 
Noncash asset impairments                 (213,730)
Cash payments associated with severance          0 
Other exit costs incurred                 (145,112)
                                         ----------
ENDING BALANCE, SEPTEMBER 30,1998        $ 614,008 
                                         ==========
</TABLE>

5.     Sale  of  Bear  Ventilation  Products  Division

     On  October  31, 1997, the Company sold the assets of Bear Medical Systems,
Inc.  ("Bear")  and its subsidiary BiCore Monitoring Systems, Inc. ("BiCore") to
Thermo-Electron  Corporation  for  $36.6 million, plus the assumption of certain
liabilities.  The  net  proceeds  of  $29.5  million,  after expenses, including
federal  and state taxes paid, were utilized to pay a significant portion of its
subordinated  debt.

     Had  the  divestiture  occurred on July 1, 1997, consolidated pro forma net
sales,  net  loss,  and  loss per share for the three months ended September 30,
1997  would  have been $23.0 million, $(0.9) million, and $(0.11), respectively.
Results  for  the ventilation products division are included in the Consolidated
Statement  of  Operations  for  the  three  months  ended  September  30,  1997.

                                       11
<PAGE>
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 months ended September
30, 1998 compared to the three months ended September 30, 1997.  This discussion
should  be  read  in  conjunction  with the June 30, 1998 consolidated financial
statements  and  accompanying  notes thereto included in the Company's form 10-K
for  the  year  ended  June  30,  1998.

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,  the  ability  to  realize  the  full  benefit  of  recent  capital
expenditures  or  consolidation  and rationalization activities, difficulties or
delays  in  the  introduction  of  new  products  or  disruptions  in  selling,
manufacturing  and/or  shipping  efforts.

The review of and comparability of year to year operating results is complicated
by  the  sale  of  the  ventilation  products division on October 31, 1997.  The
fiscal 1997 results include ventilation products division for four months in the
year  ended  June 30, 1998, including the three months ended September 30, 1997.

The  specific  transactions  and  events impacting 1998 operating results, which
make  meaningful  comparisons  more  difficult,  are  summarized  below.

SALE  OF  VENTILATION  DIVISION  ASSETS
---------------------------------------

The  Company  sold  the  assets  of  Bear Medical Systems, Inc. ("Bear") and its
subsidiary BiCore Monitoring Systems, Inc.  ("BiCore"), collectively referred to
as  the  ventilation products division, to Thermo-Electron Corporation for $36.6
million  plus  the assumption of certain liabilities.  The net proceeds of $29.5
million,  after  expenses  including  federal  and state taxes, were utilized to
repay  a significant portion of the Company's term notes and to repay all of its
subordinated  debt, $15.8 million of which had a coupon rate of 14.0% per annum.

                                       12
<PAGE>
DEBT  REFINANCING
-----------------

In  August  1997, the Company refinanced its existing debt through a $46 million
credit  facility  with  Foothill Capital Corporation.  In conjunction with these
new  credit facilities, Allied placed an additional $5.0 million in subordinated
debt with several related parties to the company.  The Foothill Credit facility,
which  was  amended  in  November 1997 to reflect the effects of the sale of the
ventilation  products  division,  and  again in September 1998 to further reduce
interest  rates,  has  allowed  the  Company to improve its liquidity and reduce
interest  expense  in comparison to prior years. In addition, on August 7, 1998,
the Company borrowed approximately $5.0 million from LaSalle National Bank.  The
borrowing  was  secured  by  a  security  interest  in  the  Company's St. Louis
facility.  This  loan  further reduces the Company's borrowing interest rate and
increases  liquidity.

GOODWILL  WRITEDOWNS
--------------------

During  the  second quarter of fiscal 1998, the Company reevaluated the carrying
value  of  its  various  businesses  and  recorded $9.8 million of non-recurring
charges to reflect the changes in business conditions resulting from the sale of
the  ventilation products division and due to other changes in market conditions
which culminated during the second quarter of fiscal 1998.  Goodwill writedowns,
which  were determined pursuant to the Company's impairment policy, totaled $8.9
million.  As  a result of the carrying value of goodwill for certain businesses,
the Company reduced its annual amortization charges by $0.3 million or $0.04 per
share.

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.  The Company
anticipates that the move will be completed in the second quarter of fiscal 1999
and  that it will generate annual savings of nearly $1.0 million.  In connection
with the shutdown of the facility, the Company has recorded a one-time charge of
approximately  $1.0 million ($0.6 million after taxes), or $.07 per share during
the  first  quarter  of  1999.  Significant  portions  of  the  pre-tax costs of
approximately  $1.0 million associated with the shutdown are expected to be paid
prior  to  January  1, 1999.  The Company will continue to review its operations
for  opportunities  to  improve  efficiencies.  See  Note  4 in the Notes to the
Consolidated  Financial  Statements  for  additional  information concerning the
details  of the Company's restructuring provision, including a reconciliation of
the  reserve  relating  thereto.

                                       13
<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.  Results  of  the  ventilation products
division  are  included  for  the  three  months  ended  September  30,  1997.

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED
                                                            SEPTEMBER 30,
                                                            1998     1997 
                                                           ------  -------
<S>                                                        <C>     <C>

Net sales                                                  100.0%  100.0%
Cost of sales                                               75.3    69.4 
                                                           ------  -------
Gross profit                                                24.7    30.6 
Total SG&A expenses                                         27.3    24.0 
Provision for restructuring and consolidation                5.5     0.0 
                                                           ------  -------
Income (loss) from operations                               (8.1)    6.6 
Interest and other expense                                   3.1     6.3 
                                                           ------  -------
Income (loss) before provision (benefit) for income taxes  (11.2)    0.3 
Provision (benefit) for income taxes                        (4.0)    0.6 
                                                           ------  -------
Loss before extraordinary item                              (7.2)   (0.3)
Extraordinary loss                                           0.0    (1.8)
                                                           ------  -------
Net loss                                                    (7.2)%  (2.1)%
                                                           =======  ======
</TABLE>

                                       14
<PAGE>
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.  Ventilation  products are included in respiratory
care  products  for  the three months ended September 30, 1997.  The ventilation
products  division  was  sold  on  October  31,  1997.
Net  sales  for  the  ventilation  products  division for the three months ended
September,  30,  1997  were  $7.1  million.

<TABLE>
<CAPTION>
                         THREE MONTHS ENDED  THREE MONTHS ENDED
                         SEPTEMBER 30, 1998  SEPTEMBER 30,1997
<S>                         <C>      <C>     <C>      <C>
                                      % of             % of 
                                     Total            total
                            Net      Net     Net      net
                            sales    Sales   Sales    sales
                            -------  ------  -------  ------
Medical Gas Equipment       $ 8,852   49.6%  $12,136   40.2%
Respiratory Care Products     6,614   37.0%   15,058   49.9%
Emergency Medical Products    2,393   13.4%    2,979    9.9%
                            -------  ------  -------  ------
Total                       $17,859  100.0%  $30,173  100.0%
                            =======  ======  =======  ======
</TABLE>


THREE  MONTHS  ENDED SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS ENDED SEPTEMBER
--------------------------------------------------------------------------------
30, 1997.
---------

Allied had net sales of $17.9 million for three months ended September 30, 1998,
down  $12.3  million  or 40.7% from net sales of $30.2 million in the prior year
same  quarter.  $7.1  million  of  this  decrease  was  attributable  to the now
divested  ventilation  products  division.  Base business sales declined by $5.2
million  or  22.5%.  Certain  internal  and  external  factors have continued to
impact  the  Company's  operations,  including  the  impact  of  healthcare cost
containment  and  Medicare reimbursements, capacity constraints in the Company's
Toledo facility, economic problems in Asia and a reduction in sales of purchased
products  for  home  care sales, especially aluminum cylinders, due to company's
emphasis  on  improved margins.  Allied's  previously announced decision to move
its  B&F Medical operations from Toledo, which is currently underway and will be
completed during the second fiscal quarter of 1999, has impacted sales from that
operation.  The  Company  experienced  production  problems  at  its  St.  Louis
facility  during the first quarter of fiscal 1999 that were not resolved in time
and  adversely  impacted shipments by $1 million.  These production problems are
now  being  resolved  and  should  not  have any lasting impact on the Company's
revenue  levels.  It  should  also  be  noted  that  the prior year same quarter
benefited  from  resumption  of  production  at the Company's St. Louis facility
following  a  nineteen  day  work  stoppage  during  June  1997.

                                       15
<PAGE>
Medical  gas equipment sales in the first quarter of fiscal 1999 of $8.9 million
were  $3.2  million or 26.4% lower than sales of $12.1 million in the prior year
same quarter.  Headwall sales declined from $1.4 million in the first quarter of
fiscal  1998  to $1.1 million in the first quarter of fiscal 1999 due to a lower
level  of bookings last year.  Medical gas construction sales declined from $5.1
million in the first quarter of fiscal 1998 to $3.5 million in the first quarter
of  fiscal 1999, while medical gas suction and regulation device sales decreased
from  $5.7  million  in  the first quarter of fiscal 1998 to $4.3 million in the
first quarter of fiscal 1999.  Both segments experienced production problems and
the  comparisons  were  affected by after strike benefits in the prior year same
quarter.

Respiratory  care  product  sales  in  the  first quarter of fiscal 1999 of $6.6
million  were  $8.5 million, or 56.2%, under sales of $15.1 million in the prior
year same quarter.  $7.1 million of this decline was attributable to the sale of
the  ventilation  products division while $1.4 million of the decline relates to
remaining  product  lines,  due  to factors cited earlier being offset by higher
Respical  calibrator sales.  Home care sales declined 20.0% from $6.0 million to
$4.8  million  due  to  factors  indicated  above.

Emergency product sales declined 19.6% from $3.0 million in the first quarter of
fiscal  1998  to  $2.4  million  in the first quarter of fiscal 1999, due to the
benefit  of  a  large  order  in  the  prior  year  same  quarter.

Orders  for three months ended September 30, 1998 were $21.0 million, down $10.0
million from prior year same quarter.  Excluding $8.7 million in orders from the
ventilation  products  division,  base  business orders declined $1.3 million or
6.0%.  Most  of  this  decrease  can be traced to a large $0.9 million order for
emergency  products  last year that did not repeat this year.  Emergency product
orders  declined  26.3%  from  $3.8  million to $2.8 million.  Total medical gas
equipment orders were $10.7 million or 1.0% lower than last year quarter's $10.8
million.  Respiratory  care  product  orders  declined 2.4% from $7.7 million to
$7.5 million.  Home care orders declined 16.4% from $6.1 million to $5.1 million
due  to  factors  indicated above while respiratory care product orders  for the
hospital market went up 50.0% from $1.6 million to $2.4 million primarily due to
orders  for  company's  new  Respical  calibration device.  Sequentially, orders
increased  from  $19.8  million  in  the  fourth fiscal quarter of 1998 to $21.0
million  or  6.1%.  The  Company's backlog now stands at $20.6 million, up 18.4%
from  prior  quarter  level  of  $17.4  million.

International  sales,  which  are  included in the product lines discussed above
decreased $6.6 million, or 68.8%, to $3.0 million in the first quarter of fiscal
1999  from  $9.6  million  in  the  prior year same period.  International sales
declined  $4.7  million  due  to  the sale of the ventilation products division,
while  the base business international sales declined by $1.9 million, or 38.8%.
The  continued  devaluation of Asian currency, and economic uncertainty in other
areas,  have  reduced  international sales and orders.  The Company continues to
emphasize the importance of worldwide markets as advances in medical protocol in
various  markets  throughout the world will lead to increased demand for medical
products.

                                       16
<PAGE>
Gross  profit for the three months ended September 30, 1998 was $4.4 million, or
24.7%  of net sales compared to a gross profit  of $9.2 million, or 30.6% of net
sales  for  the  three  months  ended  September 30, 1997.  The sale of the high
margin  ventilation  products  division  adversely impacted gross profit and the
gross  margin  in  the first quarter of fiscal 1999.  Results of the ventilation
products  division  are  included for the three months ended September 30, 1997.
In  addition,  reduced  manufacturing  throughput  and lower absorption of plant
overhead,  a direct result of lower sales volume, has further reduced margins as
a percent to net sales.  Pricing pressures brought on by consolidations and cost
containment  continue  to  impact  margins  as  a  percent  to  net  sales.

Selling, General and Administrative  ("SG&A) expenses for the three months ended
September  30, 1998 were $4.9 million, a decrease of $2.4 million, or 32.9% from
$7.3  million  for  the  three months ended September 30, 1997.  Results for the
three months ended September 30, 1997 include the ventilation products division.
Of  the  $2.4 million decline, $1.7 million is directly attributable to the sale
of  the  ventilation  products  division,  $0.1  million  is  attributable  to a
reduction  in  goodwill amortization resulting from the writedown of goodwill in
fiscal 1998, and $0.6 million is attributable to spending reductions in the base
business  SG&A.

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.  The company
anticipates  that  the  move  will  be completed in the second quarter of fiscal
1999.  Accordingly,  the  Company  has recorded a provision for restructuring of
$1.0  million  in the first quarter of fiscal 1999.  The provision reflects cost
of  certain  fixed  asset  impairments,  employee  severance  benefits and other
related  exit  costs.  See  Note  4  in  the Notes to the Consolidated Financial
Statements  for  additional  information concerning the details of the Company's
restructuring  provision,  including  a  reconciliation  of the reserve relating
thereto.

Loss  from  operations was $1.4 million for the three months ended September 30,
1998  compared  to  income  from operations of $2.0 million for the three months
ended  September  30,  1997.

Interest expense decreased  $1.3 million or 71.3%, to $0.5 million for the three
months  ended  September  30,  1998  from $1.9 million in the prior year period.
Interest  expense  was  significantly reduced due to the reduction of debt, from
the  application  of  the  proceeds  from  the  sale of the ventilation products
division.  At  September 30, 1998, commercial debt was $16.8 million, a decrease
of  66.0% from the September 30, 1997 level of $49.4 million.  On August 7, 1998
the  Company  borrowed $5.0 million from a financial institution at a fixed rate
of  7.75%,  with  proceeds  used  to  pay  down  existing  higher rate debt.  On
September  8,  1998  the  Company's  credit  facilities  with  Foothill  Capital
Corporation  were  amended  to further reduce interest rates.  The new financial
agreements  are  discussed  further  below.

                                       17
<PAGE>
Allied  had  a  loss  before provision for taxes in the first quarter of 1999 of
$2.0  million.  The Company recorded a tax benefit of $0.7 million, resulting in
a  net  loss  of $1.3 million.  Result for the first quarter of 1998 were income
before provision for taxes and extraordinary loss of $0.1 million.  In the first
quarter  of  1998  the  Company  recorded  a  provision for income taxes of $0.2
million,  caused by the non-deductibility of certain goodwill amortization.  The
impact of goodwill amortization has been reduced in fiscal 1999 by the writedown
of  goodwill  in  fiscal  1998.

In  the  first  quarter of fiscal 1998, Allied recorded an extraordinary loss on
extinguishment  of debt, of  $0.5 million, net of a tax benefit of $0.4 million.
In  fiscal  1999,  the net loss for the first quarter was $1.3 million, or $0.16
per share.  In fiscal 1998, the net loss for the first quarter was $0.6 million,
or  $0.08  per  share,  consisting of $0.01 loss per share from operations and a
$0.07 loss per share for the extraordinary item.  The weighted average number of
common  shares  outstanding  used  in  the calculation of earnings per share was
7,806,682  and  7,800,095  for the first quarter of fiscal 1999 and fiscal 1998,
respectively.

FINANCIAL  CONDITION
--------------------

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

<TABLE>
<CAPTION>
Dollars in thousands:  September 30, 1998   June 30, 1998
---------------------  -------------------  --------------
<S>                    <C>                  <C>
Cash                   $               651  $        1,195
Working Capital        $            21,709  $       21,308
Total Debt             $            16,777  $       18,415
Current Ratio                       3.28:1          2.67:1
</TABLE>

The  Company's  working capital was $21.7 million at September 30, 1998 compared
to  $21.3  million  at  June  30, 1998.  Cash, accounts receivable, inventories,
current  portion  of  long-term  debt,  accounts  payable,  and  other  current
liabilities  all  decreased  during the first quarter of fiscal 1999 while other
current  assets  increased  slightly.  Accounts  receivable  decreased  to $13.0
million at September 30, 1998 from $14.2 million at June 30, 1998.  The decrease
in  Accounts  receivable  was  due  to  decreased  sales  and continued improved
collections.  Accounts  receivable  as  measured  in  days  outstanding  ("DSO")
remained  at 69 days during this period.  Inventories decreased to $17.2 million
from  $18.3  million at June 30, 1998.  Inventories, as measured by Days on Hand
("DOH"),  were  140  DOH  at  September 30, 1998 compared to 129 DOH at June 30,
1998,  due to lower sales in the first quarter of fiscal 1999 than in the fourth
quarter  of fiscal 1998.  The Company continues to focus on improving the mix of
inventories  and  has  been  increasing  stocking levels of high volume products
while  simultaneously  reducing  stocking  levels  of  low  volume  products.

                                       18
<PAGE>
The  net  increase/  (decrease) in cash for the three months ended September 30,
1998 and September 30, 1997 was ($0.5) million and ($0.1) million, respectively.
Net  cash (used by) / provided by operations was $1.5 million and ($1.8) million
for  the  same  periods.  Cash provided by operations for the three months ended
September  30, 1998 consisted of a net loss of $1.3 million, which was offset by
non-cash  charges  to  operations  of  $1.0  million  for  depreciation  and
amortization, as well as changes in working capital accounts which provided $1.7
million,  principally from a reduction in accounts receivables of $ 1.3 million,
and  inventory  of  $1.1  million.  In  addition,  cash  provided  by  operating
activities  was  increased  by  $0.8  million  resulting  from  the  accrual  of
restructuring  provision  related to the relocation of the B&F product line from
Toledo, Ohio to St. Louis, Missouri.  These were offset by decreases in accounts
payable  of  $0.4  million,  accrued income taxes of $0.7 million, other current
liabilities  of  $0.3  million, and an increase of $0.1 million of other current
assets.

Cash provided by operations in the first quarter of fiscal 1999 was used to fund
$0.3  million  in  capital  expenditures  and  to reduce commercial debt by $1.6
million.

Cash used by operations in the prior year same period consisted of a net loss of
$0.6  million  which  was  offset  by the non-cash charges to operations of $1.3
million for depreciation and amortization, as well as changes in working capital
accounts  which  used  $2.5  million,  principally  relating  to the payments to
vendors which reduced accounts payables by $2.8 million during the quarter.  The
cash used by operating activities was funded by a net increase in aggregate debt
of  $2.5  million  which  was  also  used  to pay for debt issuance cost of $0.7
million  and  capital  expenditures  of  $0.1  million,  which resulted in a net
decrease in cash of $0.1 million, for the three months ended September 30, 1997.

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%,
compared  to  a  current  rate  of  8.5%  under  the revolving credit agreement.

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 ( 8.25% at October 23, 1998)
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%.  Amounts outstanding under this revolving credit
facility,  which expires on August 8, 2000, totaled  $9.5 million at October 23,
1998.  At  October  23,  1998,  $4.2  million  was available under the revolving
facility  for  additional  borrowings.

                                       19
<PAGE>
The  rates  noted above will drop by 0.25% at the end of fiscal 1999 and 2000 if
the  Company  is  profitable.  In  addition, the fees charged to the Company are
also  reduced.

As of September 30, 1998 the Company had a backlog of  $20.6 million compared to
a  backlog  of  $17.4  million  at  June  30,  1998.  The  Company's  backlog, a
significant  portion  of  which  is  attributable  to  the Company's medical gas
equipment  products,  consist  of  firm  customer  purchase  orders which may be
subject  to  cancellation  by  the  customer.

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

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

The Company utilizes software and related computer technologies essential to its
operations.  The Company has established a plan, utilizing internal resources to
assess  the  potential  impact  of  the  year  2000 on the Company's systems and
operations  and  to  implement solutions to address this issue. In October 1996,
the Company converted its corporate offices and its manufacturing operation to a
new  fully-integrated  software  system.   The company plans to install the most
recent  version  of  this  software, which the vendor has certified as year 2000
compliant,  by June 1999.  The Company views this as a normal, scheduled upgrade
of  software.  It  has  not been necessary to upgrade the software at an earlier
date  than  anticipated  to  assure  year 2000 compliance.  New equipment is not
required  to  upgrade software to the new version, certified by the vendor to be
year 2000 compliant.  The Company expects all critical systems will be year 2000
compliant  by  June 1999. Work on the upgrade is in process and the schedule for
upgrades is being met.   The date methodology of the current version software is
not  sensitive  to  year 2000 problems.  If the software could not be installed,
the  company  does not anticipate a problem with year 2000 compliance.  The cost
of  upgrading  to  a  year  2000 compliant version of the existing system is not
expected  to be significant.  As of October 23, 1998 the Company had expended no
funds  specifically to assure year 2000 compliance.  The Company does not expect
to  expend  funds  specifically  to  assure  year  2000  compliance.

The  Company  is  dependent  on  various  third  parties to conduct its business
operations.  These third parties are vendors of raw material and components used
in  the production process.  The Company does not anticipate that the failure of
mission  critical  third  parties  would have a material effect on the Company's
operations.  None  of  the  Company's products or components of Company products
use  date  sensitive  technology. The Company employs a large number of vendors,
without  concentration  of  critical vendors.  The Company believes that vendors
could  be  replaced  if  they  fail to meet the Company's demand for components.
However,  there  can  be  no  assurance  that  the  Company  will not experience
unanticipated  costs  and/or business interruptions due to year 2000 problems in
its  internal  systems,  or  those  of  its  vendors, and that such costs and/or
interruptions  will  not  have  a  material  adverse  effect  on  the  Company's
consolidated  results  of  operations.

                                       20
<PAGE>
PART  II.     OTHER  INFORMATION
              ------------------

Item  6.     Exhibits  and  Reports  on  Form  8-K

(a)     Exhibits-none

(b)     Reports  on  Form  8-K  -  none

                                       21
<PAGE>
                                    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/ Uma Nandan  Aggarwal
                         -----------------------------------------
                         Uma  Nandan  Aggarwal
                         President  and  Chief  Executive  Officer

                                       22
<PAGE>