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ALLIED HEALTHCARE PRODUCTS INC. ANNOUNCES STOCK REPURCHASE; SECONDARY OFFERING CANCELED

 ST. LOUIS, March 24 /PRNewswire/ -- Allied Healthcare Products Inc. (NASDAQ-NMS: AHPI) today announced that it has agreed to purchase 2,303,492 of its common shares from certain partners of St. Louis-based Harbour Group Investments L.P. for $9.00 a share.
 Prior to the repurchase, Harbour Group will distribute 3,830,854 Allied common shares to its Limited Partners. Certain of the Harbour Group partners, including an entity affiliated with Sam Fox, general partner of Harbour Group, elected not to sell any shares to Allied. The repurchase is expected to be completed this week.
 As a result of this repurchase, Allied also announced the cancellation of a previously announced 3,121,536 share secondary common stock offering filed with the SEC on Feb. 18, 1993, and a 500,000 share open market repurchase program announced in January. No shares were purchased pursuant to such program.
 Following the distribution, Harbour Group will hold 1,141,649 shares, or 20.7 percent, of Allied's 5,521,508 common shares outstanding. In addition, an entity affiliated with Fox will own 1,005,600 shares, or 18.2 percent, of Allied's outstanding common stock.
 Allied stated that it will finance the share repurchase through a combination of approximately $8.0 million in available cash and approximately $12.7 million in bank borrowings. The company currently has no bank debt.
 Commenting on these corporate developments, Earl R. Refsland, president and chief executive officer, stated: "Given present market conditions and the current price of Allied's stock, the company's board and management view the repurchase of 2.3 million shares and the resulting 29.4 percent reduction in the company's outstanding common stock as a prudent step in our overall commitment to building shareholder value. Allied's healthy cash flow certainly supports this action.
 "In addition to aggressively maintaining our leadership position in the medical gas equipment and respiratory therapy product markets, the company is well-positioned for growth in all of Allied's other medical-related product lines," Refsland added.
 As previously announced, Allied declared an initial quarterly dividend of $0.06 per share payable April 15, 1993, to stockholders of record on March 31, 1993.
 Allied Healthcare Products Inc. is an industry leader in the manufacturing and marketing of medical gas equipment and respiratory therapy products. The company operates principally within three areas of the healthcare industry: hospital construction and renovation, in-patient respiratory therapy and suction equipment and the home respiratory market.
 -0- 3/24/93
 /CONTACT: David V. LaRusso of Allied Healthcare Products, 314-771-2400; or Gary S. Maier of Pondel Parsons & Wilkinson, 310-207-9300, for Allied Healthcare/
 (AHPI)


CO: Allied Healthcare Products Inc.; Harbour Group Investments L.P. ST: Missouri IN: HEA SU:

LS-JL -- LA008 -- 8966 03/24/93 08:45 EST
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Publication:PR Newswire
Date:Mar 24, 1993
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