[ALLIED HEALTHCARE LOGO OMITTED]

                  ALLIED HEALTHCARE INTERNATIONAL INC. REPORTS
                  --------------------------------------------
                       FISCAL 2006 SECOND QUARTER RESULTS
                       ----------------------------------

                                          FISCAL 2006         FISCAL 2005
                                          -----------         -----------
                                         SECOND QUARTER      SECOND QUARTER
      REVENUE ($M)                            71.1                90.8
      GROSS PROFIT ($M)                       21.5                26.2
      GROSS MARGIN %                         30.3%               28.8%
      DILUTED EPS ($)                         0.06                0.11

                                          YEAR TO DATE        YEAR TO DATE
                                          ------------        ------------
      CASH FLOWS FROM OPERATIONS ($M)         15.7                9.2


NEW YORK, NY -- May 10, 2006 -- Allied Healthcare International Inc. (Nasdaq:
AHCI; AIM: AHI), a leading provider of flexible healthcare staffing services in
the United Kingdom, has reported results for the fiscal 2006 second quarter
ended March 31, 2006.

Allied's revenue for the second quarter of 2006 was $71.1 million, a decrease of
21.7% compared to $90.8 million during the same period in 2005. Gross profit
decreased by 17.8% to $21.5 million this quarter, compared to $26.2 million for
the comparable period last year. In both of the results, more than 6% of the
reduction can be attributed to currency exchange rates. Gross profit margin
remained strong at 30.3% in the quarter, compared with 28.8% during the same
period last year.

Net income for the quarter ended March 31, 2006 was $2.6 million, or $0.06 per
diluted share, compared with net income of $5.1 million, or $0.11 per diluted
share, during the comparable period in fiscal 2005. Cash flows from operations
for the year to date increased 71% from $9.2 million to $15.7 million.

Allied's core Social Services business continued to expand during the second
quarter, showing a growth in gross profit of 6.3% for the year to date. The
expansion of the Social Services sector is due to a greater demand from the
elderly population and increased contracting activity with local governments.
During the second quarter, Allied was awarded contracts from a London Borough,




an existing customer, and a County Council in the Midlands, a new customer, for
approximately $5 million and $3 million, respectively.

Allied's National Health Services (NHS) revenue declined 36% for the year to
date. As a result, the Company's gross profit mix is currently as follows: NHS
16%; Nursing Homes 16%; Social Services, including private clients, 64%; and
Oxygen 4%. The reduction in NHS business was driven by a decrease in
expenditures and downward price pressure for agency nurses by the NHS.

Allied will continue to emphasize the Social Services sector and expanding its
long-term care services. This favorable flexible staffing mix is reflected in
Allied's 30.3% gross margin for the quarter verses 28.8% for the second quarter
last year.

Timothy Aitken, Allied Chairman and Chief Executive Officer, commented:
"Allied's network of branches is delivering more social-care and home-care
visits through its existing branch network. The challenge now, in the second
half of 2006, is for the Company to capture increased market share through
social services tenders with local authorities while simultaneously maintaining
our reputation for clinical excellence."

On February 1, 2006, Allied began delivering at-home respiratory therapy to
patients through its new five-year oxygen contract. The Company had anticipated
a census of 12,000 initial oxygen patients, with a transition rate of 200 per
day; however, it received 20,000-plus calls within the first week of the
contract. As a consequence, the Company incurred higher-than-anticipated
implementation expenses for building the infrastructure and distribution network
required to absorb the accelerated transition of oxygen patients from
community-based pharmacies. This investment in Allied Respiratory equated to
approximately 1.5 cents per share in the second quarter. Management believes
this incremental investment will ensure patient care with the goal of increasing
earnings from respiratory therapy to historical levels by the fourth quarter.

During the second quarter, the Company also conducted a comprehensive staffing
and expenditure review throughout its branch network, as well as within its
administrative head office in Staffordshire. This effort led to a headcount
reduction of more than 60 full-time equivalents and is



expected to generate annual savings of approximately $3.6 million, which should
be realized by the fourth quarter. As a result of this downsizing, however, the
Company paid approximately $200,000 in severance charges for terminated
employment contracts.

Allied is focused on reducing Selling, General and Administrative, which
represented approximately 24.6% of gross revenues in the second quarter,
compared to 19.8% during the same period the year before. The increase in
expenses is mainly attributable to higher depreciation ($0.4 million) for the
new Information Technology system and a $0.8 million investment in the Company's
respiratory-distribution business.

Allied invites all those interested in hearing management's discussion of the
second-quarter results to join the conference call by dialing 877-407-9205 on
Thursday, May 11, 2006, at 10:00 AM EST. International participants may access
the call by dialing 201-689-8054. A replay will be available for one week
following the day of the call by dialing 877-660-6853 for domestic participants
and 201-612-7415 for international participants. Refer to replay passcode
account number 286 and conference ID number 200986 when prompted. Participants
may also access a live webcast of the conference call through the "Investors"
section of Allied Healthcare's website, www.alliedhealthcare.com. The
presentation will be available and archived for 90 days.

ABOUT ALLIED HEALTHCARE INTERNATIONAL INC.
Allied Healthcare International Inc. (http://www.alliedhealthcare.com) is a
leading provider of flexible healthcare staffing services in the United Kingdom.
Allied operates a community-based network of approximately 100 branches with the
capacity to provide carers (known as home health aides in the U.S.), nurses, and
specialized medical personnel to locations covering approximately 90% of the
U.K. population. Allied meets the needs of Private Patients, Community Care,
Nursing Homes and Hospitals. The company also supplies medical-grade oxygen for
use in respiratory therapy to the U.K. pharmacy market and Northern Ireland and
oxygen concentrators to customers in Northern Ireland. Following the award of
the new oxygen contracts, the Company now also provides unified oxygen services
directly to customers in the South East of England.

FORWARD-LOOKING STATEMENTS
Certain statements contained in this news release may be forward-looking
statements. These forward-looking statements are based on current expectations
and projections about future events. Actual results could differ materially from
those discussed in, or implied by, these forward-looking statements. Factors
that could cause actual results to differ from those implied by the
forward-looking statements include: Allied's ability to continue to recruit and
retain qualified flexible healthcare staff; ability to enter




into contracts with hospitals and other healthcare facility customers on terms
attractive to Allied; the general level of patient occupancy at hospital and
healthcare facilities of Allied's customers; demand for the services provided by
Allied; the ability to successfully implement acquisition and integration
strategies; dependence on the proper functioning of Allied's information
systems; the effect of existing or future government regulation of the
healthcare industry, and ability to comply with these regulations; the impact of
medical malpractice and other claims asserted against Allied; the effect of
regulatory change that may apply to Allied and that may increase costs and
reduce revenue and profitability; the ability to use net operating loss carry
forwards to offset net income; and the impairment of goodwill, of which Allied
has a substantial amount on the balance sheet, may have the effect of decreasing
earnings or increasing losses. Other factors that could cause actual results to
differ from those implied by the forward-looking statements in this press
release include those described in Allied's most recently filed SEC documents,
such as its most recent annual report on Form 10-K, all quarterly reports on
form 10-Q and any current reports on Form 8-K filed since the date of the last
Form 10-K. Allied undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

For further information:
Allied Healthcare Contact:                        Investor Contact:
Charles Murphy                                    Adam Holdsworth
Chief Financial Officer                           The Investor Relations Group
(212) 750-0064                                    (212) 825-3210
charlesmurphy@alliedhealthcare.com


                      ALLIED HEALTHCARE INTERNATIONAL INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                   (UNAUDITED)



                                                          THREE MONTHS ENDED      SIX MONTHS ENDED
                                                         ---------------------  --------------------
                                                         MARCH 31,   MARCH 31,  MARCH 31,  MARCH 31,
                                                           2006        2005       2006       2005
                                                         --------    --------   --------   --------

    Total revenues                                       $ 71,098    $ 90,815   $146,953   $177,378

    Gross profit                                           21,537      26,196     45,262     51,410

    Selling, general and administrative expenses           17,460      18,023     35,591     35,250
                                                         --------    --------   --------   --------

          Operating income                                  4,077       8,173      9,671     16,160

    Interest and other expense, net                           940         734      1,876      1,943

    Foreign exchange (income) loss                            (15)         18         26         11
                                                         --------    --------   --------   --------

          Income before income taxes                        3,152       7,421      7,769     14,206

    Provision for income taxes                                583       2,366      1,794      4,324
                                                         --------    --------   --------   --------

          Net income                                     $  2,569    $  5,055   $  5,975   $  9,882
                                                         ========    ========   ========   ========

Basic and diluted net income per share of common stock   $   0.06    $   0.11   $   0.13   $   0.22
                                                         ========    ========   ========   ========

Weighted average number of common shares outstanding:
          Basic                                            44,944      44,593     44,903     44,529
                                                         ========    ========   ========   ========
          Diluted                                          45,152      45,172     45,184     45,056
                                                         ========    ========   ========   ========