AHCI Allied Healthcare International Inc. (MM)

Allied Healthcare International Inc. (NASDAQ: AHCI), a leading homecare provider of health and social care in the United Kingdom and Ireland, announced today that its U.K. subsidiary, Allied Healthcare Group Limited, has reached an agreement to assume responsibility for the homecare business of Sue Ryder.

Sue Ryder is a national charity organization, which has been providing health and social care services in local communities since the early 1990's. Its homecare business consists of 8 branches in England with the sites in Doncaster, Bournemouth, Wolverhampton, Wigan, Trafford, Lincoln, Macclesfield and Newark, providing 8,000 hours of care each week. Last year Sue Ryder revenues from homecare activities were in excess of £5 million ($8 million).

In connection with the transaction, Allied has agreed to pay a deferred consideration of up to a maximum of £130 thousand ($210 thousand) linked to the hours transferred after a three-month period.

Sandy Young, Chief Executive Officer of Allied, commented, "We are excited about the transfer of Sue Ryder's charity homecare services to Allied, which is in line with our growth strategy and commitment to providing high quality services. Both Sue Ryder and Allied Healthcare Group have established very strong industry reputations, and our businesses are a good fit. We look forward to welcoming Sue Ryder employees to our Group."

Paul Woodward, Chief Executive Officer of Sue Ryder, said, "After careful consideration the charity is proposing to transfer all its English homecare business to Allied. Allied is one of the U.K.'s leading homecare providers, whose quality credentials and experience in the homecare sector mean that they are well placed to handle the seamless transition of care services on this scale. It is anticipated by Allied that there will be no care worker redundancies as a result of this transfer. We have had support from homecare Local Authority Commissioners, which encourages us to believe we are doing the right thing."

About Allied Healthcare International Inc. Allied Healthcare International Inc. is a leading homecare provider of health and social care in the United Kingdom and Ireland. Allied operates a community-based network of approximately 120 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. For more news and information please visit: www.alliedhealthcare.com.

About Sue Ryder Sue Ryder is a national charity providing health and social care services in local communities. Sue Ryder provides compassionate care services to people with long-term and end of life needs. They do this in hospices, residential care centres and people's homes and support families, friends and carers. Sue Ryder's health and social care services are supported by their retail, fundraising and volunteering teams. For more news and information please visit: www.suerydercare.org.

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: general economic and market conditions; the effect of the change in the U.K. government and the impact of proposed changes in recent policy making related to health and social care that may reduce revenue and profitability; the impact of the HM Treasury Comprehensive Spending Review 2010 setting out the U.K. government's plans to reduce spending; the introduction by the U.K. government of individualized budgets and direct payments for service users, which could lead our hospital, healthcare facility and other customers to bypass our services and which might decrease our revenues and margins; Allied's ability to continue to recruit and retain flexible healthcare staff; Allied's ability to enter into contracts with local government social services departments, NHS Trusts, hospitals, other healthcare facility clients and private clients on terms attractive to Allied; the general level of demand and spending for healthcare and social care; dependence on the proper functioning of Allied's information systems; the effect of existing or future government regulation of the healthcare and social care industry, and Allied's 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 revenues and profitability; the effect of existing or future government regulation in relation to employment and agency workers' rights and benefits, including changes to National Insurance rates and pension provision; Allied's ability to use net operating loss carry forwards to offset net income; the effect that fluctuations in foreign currency exchange rates may have on our dollar-denominated results of operations; 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.

CONTACT Allied Healthcare International Inc. Sandy Young Chief Executive Officer Paul Weston Chief Financial Officer +44 (0) 1785 810600 Or ICR, LLC Sherry Bertner Managing Director +1 646 277 1247 Sherry.Bertner@icrinc.com