exv99w1

Exhibit 99.1


Contact:		Daniel C. Dunn Chief Financial Officer 314/771-2400

Allied Healthcare Reports Flat Second Quarter Net
Income
With Higher Material Costs Eroding Profits

ST. LOUIS, February 7, 2007 — Allied Healthcare Products, Inc. (NASDAQ: AHPI) reported that its net income declined 7.6 percent to $293,000, or 4 cents per share, during its second quarter ending December 31, 2006, versus $317,000, or 4 cents per share, for the second quarter last year.

Net income for the first two quarters of fiscal 2007 fell 36.8 percent to $495,000, or 6 cents per share, from $783,000, or 10 cents per share, for the first two quarters of the prior year.

Higher material prices cost about $1 million in pretax profit for the first half of the fiscal year, or about 7 cents per share, compared to the previous year, according to Earl Refsland, president and chief executive officer. Higher prices for raw materials, particularly copper and brass, have eroded company margins for the last 18 months.

Refsland said that Allied had not increased its prices as planned due to competition in some product lines. Higher material prices will be addressed with a combination of pricing guidelines based on market conditions and negotiations with suppliers, he said.

Sales in the second quarter increased about 8 percent to $14.3 million from $13.3 million the previous year. For the first two quarters of fiscal 2007, sales increased only slightly.

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.

ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)


	Three months ended,						Six months ended,
	December 31,						December 31,
	2006			2005			2006			2005

Net sales	$	14,273,950		$	13,339,789		$	28,751,392		$	28,326,070
Cost of sales		10,757,222			9,766,848			21,715,111			20,778,612


Gross profit		3,516,728			3,572,941			7,036,281			7,547,458

Selling General and administrative expenses		3,091,418			3,032,153			6,282,415			6,202,112


Income from operations		425,310			540,788			753,866			1,345,346

Interest income		(28,059	)		(18,718	)		(56,228	)		(26,675	)
Other, net		(53,182	)		8,924			(43,878	)		19,993

		(81,241	)		(9,794	)		(100,106	)		(6,682	)


Income before provision for income taxes		506,551			550,582			853,972			1,352,028

Provision for income taxes		213,395			233,328			359,183			568,933


Net income	$	293,156		$	317,254		$	494,789		$	783,095


Net income per share — Basic and diluted	$	0.04		$	0.04		$	0.06		$	0.10


Weighted average common shares Outstanding — Basic		7,877,120			7,832,186			7,868,512			7,830,881

Weighted average common shares Outstanding — Diluted		8,059,573			8,050,069			8,064,650			8,041,758

ALLIED HEALTHCARE PRODUCTS, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)


	December 31, 2006			June 30, 2006

ASSETS
Current assets:
Cash and cash equivalents	$	2,842,638		$	2,696,324
Accounts receivable, net of allowances of $400,000 and $430,000, respectively		7,357,596			7,429,355
Inventories, net		12,187,592			11,491,305
Other current assets		498,154			224,853

Total current assets		22,885,980			21,841,837

Property, plant and equipment, net		10,902,795			11,252,934
Goodwill		15,979,830			15,979,830
Other assets, net		253,222			255,845

Total assets	$	50,021,827		$	49,330,446


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	3,666,116		$	3,208,699
Deferred income taxes		677,188			689,942
Deferred revenue		465,000			465,000
Other accrued liabilities		2,670,374			2,834,495

Total current liabilities		7,478,678			7,198,136


Deferred revenue		1,240,000			1,472,500


Commitments and contingencies

Stockholders’ equity:
Preferred stock; $0.01 par value; 1,500,000 shares authorized; no shares issued and outstanding		—			—
Series A preferred stock; $0.01 par value; 200,000 shares authorized; no shares issued and outstanding		—			—
Common stock; $0.01 par value; 30,000,000 shares authorized; 10,187,069 shares issued at December 31, 2006 and 10,155,569 shares issued at June 30, 2006; 7,883,577 outstanding at December 31, 2006 and 7,852,077 shares outstanding June 30, 2006, respectively		101,871			101,556
Additional paid-in capital		47,406,417			47,258,182
Retained earnings		14,526,289			14,031,500
Less treasury stock, at cost; 2,303,492 shares at December 31, 2006 and June 30, 2006, respectively		(20,731,428	)		(20,731,428	)

Total stockholders’ equity		41,303,149			40,659,810

Total liabilities and stockholders’ equity	$	50,021,827		$	49,330,446