SOURCE: Allied Healthcare International Inc.

Allied Healthcare International Inc.

January 14, 2010 07:00 ET

Allied Healthcare International Inc. Secures Two New Contract Wins

Wins With Carmarthenshire County Council in Wales and Rochdale Metropolitan Borough Council Adds a New Branch and Increases Market Penetration

NEW YORK, NY--(Marketwire - January 14, 2010) - Allied Healthcare International Inc. (NASDAQ: AHCI) (AIM: AHI) ("Allied"), a leading provider of flexible healthcare staffing services in the United Kingdom, has secured a four-year contract with Carmarthenshire County Council in Wales and a two-year contract with Rochdale Metropolitan Borough Council in the Greater Manchester conurbation.

Under the new contracts, Allied has the opportunity to deliver up to 2,000 hours of home care services per week (104,000 hours per year) as a provider for Carmarthenshire, a county in West Wales with a population of almost 180,000, and up to 1,300 hours of home care services per week (67,600 hours per year) for Rochdale, a borough in North West England, with a population of over 200,000. These awards mean the addition of a new branch in Rochdale, which opened in November 2009, and additional hours for two existing Welsh branches, Carmarthen and Llanelli, commencing by April 1, 2010.

Rochdale Metropolitan Borough Council commented: "Allied demonstrated and evidenced excellent provision of services, well trained staff and excellent management of services for vulnerable people. Once the contracts were to be awarded, Allied was very pro-active in completing implementation plans, keeping Rochdale updated and contacting service users. Although Allied has only been operating in Rochdale for a very short period of time, we have worked closely in partnership with the management team, which I can say has been impressive.

"We continue to look forward to working together in the future, to ensure that the service users receive the high quality service that they deserve."

Sandy Young, Chief Executive Officer of Allied, commented: "We are delighted to win these significant new contracts with two local authorities, one where we have previously not had a presence and the other further cementing our market leadership in Wales."

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 113 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 and care homes, and hospitals. For more news and information please visit: www.alliedhealthcare.com.

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; Allied's ability to continue to recruit and retain flexible healthcare staff; the H1N1 influenza virus which may result in staff being unable to perform services due to their own illness or due to the illness of patients and may reduce our revenues; 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 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; 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 Information

  • CONTACT

    Allied Healthcare International Inc.
    Sandy Young
    Chief Executive Officer
    Paul Weston
    Chief Financial Officer
    +44 1785 810600
    Or
    Piper Jaffray Ltd. (Nominated Advisor)
    Matthew Flower
    Rupert Winckler
    +44 20 3142 8700
    Or
    ICR Inc.
    Sherry Bertner
    Managing Director
    +1 646 277 1218
    Sherry.Bertner@icrinc.com