Allied Healthcare International Inc. Acquires The Medic-One Group Limited; Acquisition Will Further Enhance Company's Business Throughout the London Area.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 12, 2002

Allied Healthcare International Inc. (AMEX: ADH), a leading international provider of flexible healthcare staffing services, announced today the acquisition of The Medic-One Group Limited, located in Southeast England. Medic-One was acquired through Allied Healthcare International's U.K. subsidiary, Allied Healthcare Group Ltd.

Medic-One is a supplier of temporary staff to National Health Service (NHS) hospitals and private hospitals, and is licensed under the Nurses Agency Act. From its call centre in Aylesbury, the company provides nursing and staffing support as well as supplies, predominantly throughout the London area. Recently, the company has been extending its provision of services into the Nottingham and Trent regions of England. Medic-One is recognized in the industry for its ability to service NHS Trust Hospitals in London, where other service providers have been unable to meet their growing needs.

Medic-One, with 28 full-time employees and nearly 2,500 temporary staffing professionals, will continue to operate from its current Aylesbury location and its management team will remain with Allied Healthcare. The purchase price consideration of Medic-One included cash and equity with a two-year earn-out provision. Medic-One is expected to be accretive to earnings, adding approximately $1.2 million of EBITDA for the remainder of fiscal 2003, which ends September 30.

"The acquisition of Medic-One gives us the opportunity to leverage our existing London operation, which has been growing recently with the addition of several new contracts. We expect Medic-One's growth to be in line with the significant growth rates Allied Healthcare has recently experienced," said Timothy M. Aitken, chairman and CEO of Allied Healthcare International.

Sarah L. Eames, Allied Healthcare's president and chief operating officer, added: "The acquisition of Medic-One marks the company's fortieth in the U.K. in the past three years. Most importantly, it further endorses the company's clearly stated growth strategy to expand through acquisition as well as to grow organically. Medic-One fits well within this strategy, and we continue to seek other complementary acquisitions in the U.K. as well as in the U.S."

New York-based Allied Healthcare International Inc. is a leading provider of flexible healthcare staffing services in the United Kingdom. The company also provides ancillary homecare services in the United States.

Certain statements contained herein are forward-looking statements that have been made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, including those contained in the Company's filings with the Securities and Exchange Commission, which may cause actual results in future periods or plans for future periods to differ materially from those described herein as anticipated, believed or estimated.