NEWS RELEASE

     Allied Healthcare Products Announces Sale of Ventilator Division

     ST. LOUIS, Oct. 7 /PRNewswire/ -- Allied Healthcare Products, Inc. (Nasdaq:
AHPI) today announced that it has signed an agreement to sell the assets of Bear
Medical  Systems  and  its  subsidiary  BiCore  Monitoring  Systems,   based  in
Riverside,  California,  to Thermo Electron  Corporation  (NYSE:  TMO) for $37.5
million. The sale has been approved by the board of directors of both companies.
The transaction is subject to a number of conditions,  including clearance under
the Hart-Scott-Rodino Act.

     Uma Aggarwal,  president and chief  executive  officer,  stated,  "The sale
enables  Allied to focus on its core  business  and will  allow the  company  to
eliminate  a  significant  portion  of  its  term  notes  and  repay  all of its
subordinated debt."

     In August 1997,  Allied  refinanced  the company's debt through a new $46.0
million credit facility with Foothill Capital Corporation, a division of Norwest
Bank and  through the  placement  of $5.0  million in  subordinated  debt.  Upon
completion of the transaction,  the Company believes it will have  approximately
$22.0 million in debt outstanding under the Foothill Capital  Corporation credit
facility.

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

SOURCE Allied Healthcare Products, Inc.
        -0-                                 10/07/97
     /CONTACT:  Uma Nandan Aggarwal,  President and CEO or Barry F. Baker, Chief
Financial Officer,  314-771-2400,  both of Allied Healthcare Products,  Inc.; or
Gary S. Maier of Pondel Parsons & Wilkinson, 310-207-9300/
        (AHPI TMO)