**Exhibit
      99.1**




LOGO





**Contact:**  **Daniel
      C. Dunn**


**Chief
      Financial Officer**


**314/771-2400**











**Allied
      Healthcare Improves Third Quarter Net Income**











ST.
      LOUIS, May 2, 2007 - Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported
      that its net income increased about 17.8 percent to $278,000, or 4 cents per
      share, versus $236,000, or 3 cents per share, in its third quarter last year.




Net
      income for the first three quarters of fiscal 2007 declined 24.3 percent to
      $772,000, or 10 cents per share, from $1.02 million, or 13 cents per share,
      for
      the first three quarters of the prior year.




Sales
      for
      the third quarter were about $1 million lower than the prior year. However,
      lower sales were offset by increased margins.




Sales
      for
      the first three quarters decreased $628,000, to $42.5 million for this year
      versus $43.1 million the previous year. International sales orders increased
      more than $700,000 to almost $8.2 million for the current nine month period,
      led
      by gains in Europe and South America. Domestic sales orders for the three
      quarters declined slightly.




Negotiations
      with suppliers began to help offset increases in material costs in Allied’s
      third quarter, according to Earl Refsland, president and chief executive
      officer. Price increases on selected products also helped the company restore
      margins eroded by higher material costs in the last year. Pricing adjustments
      and supplier negotiations will continue, Refsland said.




5


The
      company reported that it has cash and equivalents at the end of the period
      of
      $2.7 million compared to $1.1 million at the end of the third quarter in the
      prior year.




Allied
      Healthcare Products, Inc., is a leading manufacturer of respiratory care
      products, medical gas equipment and emergency medical products used in a wide
      range of hospital and alternate care settings.








“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.











**##**


6


ALLIED
        HEALTHCARE PRODUCTS, INC.
 CONSOLIDATED
        STATEMENT OF OPERATIONS
 (UNAUDITED)
 
 Three
                  months ended,
              
              Nine
                  months ended,March
                  31,
              
              March
                  31,2007
              
              2006
              
              2007
              
              2006Net
                  sales
              
              $
              13,703,784
              
              $
              14,756,600
              
              $
              42,455,176
              
              $
              43,082,670Cost
                  of sales
              
              
              10,251,494
              
              
              11,352,190
              
              
              31,966,606
              
              
              32,130,802Gross
                  profit
              
              
              3,452,290
              
              
              3,404,410
              
              
              10,488,570
              
              
              10,951,868Selling
                  General and administrative expenses
              
              
              3,003,928
              
              
              2,992,446
              
              
              9,286,343
              
              
              9,194,558Income
                  from operations
              
              
              448,362
              
              
              411,964
              
              
              1,202,227
              
              
              1,757,310Interest
                  income
              
              
              (25,844
              )
              
              (9,311
              )
              
              (82,071
              )
              
              (35,986
              )Other,
                  net
              
              
              9,328
              
              
              8,861
              
              
              (34,551
              )
              
              28,854(16,516
              )
              
              (450
              )
              
              (116,622
              )
              
              (7,132
              )Income
                  before provisionfor
                  income taxes
              
              
              464,878
              
              
              412,414
              
              
              1,318,849
              
              
              1,764,442Provision
                  for income taxes
              
              
              187,198
              
              
              176,257
              
              
              546,381
              
              
              745,190Net
                  income
              
              $
              277,680
              
              $
              236,157
              
              $
              772,468
              
              $
              1,019,252Net
                  income per share - Basic
              
              $
              0.04
              
              $
              0.03
              
              $
              0.10
              
              $
              0.13Net
                  income per share - Diluted
              
              $
              0.03
              
              $
              0.03
              
              $
              0.10
              
              $
              0.13Weighted
                  average common sharesOutstanding
                  - Basic
              
              
              7,883,577
              
              
              7,849,910
              
              
              7,873,460
              
              
              7,837,132Weighted
                  average common sharesOutstanding
                  - Diluted
              
              
              8,077,696
              
              
              8,068,817
              
              
              8,071,832
              
              
              8,057,166
 7
 
 ALLIED
          HEALTHCARE PRODUCTS, INC.
 CONSOLIDATED
          BALANCE SHEET
 (UNAUDITED)
 
 March
                    31, 2007
                
                June
                    30, 2006ASSETSCurrent
                    assets:Cash
                    and cash equivalents
                
                $
                2,714,275
                
                $
                2,696,324Accounts
                    receivable, net of allowancesof
                    $415,000 and $430,000, respectively
                
                
                6,781,064
                
                
                7,429,355Inventories,
                    net
                
                
                12,786,333
                
                
                11,491,305Other
                    current assets
                
                
                369,753
                
                
                224,853Total
                    current assets
                
                
                22,651,425
                
                
                21,841,837Property,
                    plant and equipment, net
                
                
                10,805,016
                
                
                11,252,934Goodwill
                
                
                15,979,830
                
                
                15,979,830Other
                    assets, net
                
                
                251,911
                
                
                255,845Total
                    assets
                
                $
                49,688,182
                
                $
                49,330,446LIABILITIES
                    AND STOCKHOLDERS' EQUITYCurrent
                    liabilities:Accounts
                    payable
                
                $
                3,394,054
                
                $
                3,208,699Deferred
                    income taxes
                
                
                670,705
                
                
                689,942Deferred
                    revenue
                
                
                465,000
                
                
                465,000Other
                    accrued liabilities
                
                
                2,437,638
                
                
                2,834,495Total
                    current liabilities
                
                
                6,967,397
                
                
                7,198,136Deferred
                    revenue
                
                
                1,123,750
                
                
                1,472,500Commitments
                    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;
                    10,187,069 shares issued at March 31, 2007and
                    10,155,569 shares issued at June 30, 2006; 7,883,577outstanding
                    at March 31, 2007 and 7,852,077shares
                    outstanding June 30, 2006, respectively
                
                
                101,871
                
                
                101,556Additional
                    paid-in capital
                
                
                47,422,624
                
                
                47,258,182Retained
                    earnings
                
                
                14,803,968
                
                
                14,031,500Less
                    treasury stock, at cost; 2,303,492 shares atMarch 31, 2007 and June 30, 2006, respectively
                
                
                (20,731,428
                )
                
                (20,731,428
                )Total
                    stockholders' equity
                
                
                41,597,035
                
                
                40,659,810Total
                    liabilities and stockholders' equity
                
                $
                49,688,182
                
                $
                49,330,446
 8