Allion Healthcare Reports Record First Quarter 2009 Revenues of $97 Million and Fully Diluted EPS of $0.13 and Increases Annual EPS Guidance to $0.50 - $0.52

Allion Healthcare (NASDAQ: ALLI):

• Fully Diluted EPS Guidance increased to $0.50 to $ 0.52 per share
• Net sales increased 48% to $96.6 million from $65.3 million
• Net income increased to $3.5 million compared to a net loss of $1.3 million
• Earnings per diluted share increased to $0.13 compared to a net loss of $0.08
• Specialty HIV net sales increased 9% to $71.0 million
• Specialty Infusion net sales increased 6% sequentially to $25.6 million over the fourth quarter of 2008

Allion Healthcare (NASDAQ: ALLI) today announced financial results for the first quarter ended March 31, 2009. Results for the period include the Company’s expansion into the Specialty Infusion market as a result of the April 4, 2008 acquisition of Biomed America, Inc. ("Biomed”). Allion Healthcare now operates its business in two segments: Specialty HIV, which is the Company’s legacy specialty pharmacy and disease management business focused on HIV/AIDS patients, and Specialty Infusion, which is the Company’s recently acquired Biomed business specializing in biopharmaceutical medications and services for chronically ill patients.

Summary of Results

Consolidated net sales increased 48% to $97 million for the quarter ended March 31, 2009 when compared to the first quarter of 2008. Both business segments grew organically with Specialty HIV up 9% to $71 million when compared to the first quarter of 2008 and Specialty Infusion up sequentially 6% over the fourth quarter of 2008.

Adjusted EBITDA more than tripled to $8.8 million in the first quarter of 2009, compared to $2.7 million during the first quarter of 2008. The increase in Adjusted EBITDA primarily resulted from the $5.8 million contribution from the Biomed acquisition. An explanation and reconciliation of Net income under GAAP to EBITDA and Adjusted EBITDA is provided below.

Net income for the first quarter of 2009 increased to $3.5 million, compared to a net loss of $1.3 million for the same period in 2008. Earnings per diluted share for the first quarter of 2009 were $0.13, compared to loss per diluted share of $0.08 for the first quarter of 2008.

Fully diluted shares outstanding for the three-month period ended March 31, 2009 include 1,719,000 contingently issuable shares related to the component of the Biomed earn out estimated to be settled in stock. Based on the Specialty Infusion operating results through March 31, 2009, the Company included an estimate of its total obligations under the Biomed earn out and recorded a long-term liability and an addition to goodwill of $50.0 million. The final amount paid, which is expected to be made some time in the third quarter of 2009, will be made in a combination of the Company’s common stock, subordinated debt and/or cash.

"The significant contribution to earnings made by our Specialty Infusion division in its first year of operations more than validates our expectations of a year ago,” said Michael Moran, Chairman, President and Chief Executive Officer of Allion Healthcare. "We believe that our diversified, national specialty pharmacy platform will continue to provide strong organic growth in our existing business lines.”

Guidance

The Company today increased its Fully Diluted EPS guidance for the full year 2009. Guidance of Earnings Per Diluted Share includes the effect of the additional shares to be issued as a result of the Biomed earn out, but does not include charges related to the Company’s executive stock based compensation plan and the future impact of any non-cash charges related to the Company’s adoption of the provisions of EITF 07-05, which requires the Company to now "Mark to Market” its outstanding stock warrants as derivative liability instruments.

(1) "Patient months” represents a count of the number of months during a period that a patient received at least one prescription. If an individual patient received multiple medications during each month of a three month period, a count of three would be included in patient months irrespective of the number of medications filled in each month.

Conference Call Information

The conference call to discuss the results will be held at 9:00 a.m. ET on Thursday, May 7, 2009. To access the call, please dial (888) 279–0822. International participants may dial (706) 902-0355. The conference call will also be webcast on Allion Healthcare’s website at www.allionhealthcare.com. To join the webcast, please go to Allion Healthcare’s web site at least 15 minutes prior to the start of the conference call to register, download, and install any necessary audio software.

An audio replay of the conference call will be available from 12:00 p.m. ET on Thursday, May 7, 2009, through 11:59 p.m. ET on Thursday, May 21, 2009 by dialing (800) 642-1687 from the U.S. or (706) 645-9291 from abroad and entering confirmation code 97180455. The audio webcast will also be available on the company's website, www.allionhealthcare.com, for one year.

Questions during the live call will be taken from investment professionals only.

About Allion Healthcare

Allion Healthcare, Inc. is a national provider of specialty pharmacy and disease management services focused on HIV/AIDS patients, as well as specialized biopharmaceutical medications and services to chronically ill patients. Allion Healthcare sells HIV/AIDS medications, ancillary drugs and nutritional supplies under the trade name MOMS Pharmacy. Allion Healthcare provides services for the intravenous immunoglobulin, Blood Clotting Factor and other therapies through its Specialty Infusion division. Allion Healthcare works closely with physicians, nurses, clinics, AIDS Service Organizations, and with government and private payors to improve clinical outcomes and reduce treatment costs.

Safe Harbor Statement

This press release contains certain "forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s future financial performance and growth, and the amount, timing of and mix of consideration used for the payment of the Biomed earn out obligation. Words such as "continue," "will," "believe," "estimate,” and similar expressions identify forward-looking statements. Such forward-looking statements represent Allion Healthcare’s expectations and beliefs and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, successful integration of the Biomed acquisition, competitive pressures, demand for Allion Healthcare’s products and services, declining general economic conditions and restrictions in the credit market, changes in third party reimbursement rates or Allion Healthcare’s qualification for preferred reimbursement rates in California and New York, changes in government regulations or the interpretation of these regulations, Allion Healthcare’s ability to manage growth successfully, Allion Healthcare’s ability to effectively market its services, receipt of licensing and regulatory approvals, successful identification of strategic alliances and satellite facilities, and other risks set forth in Item 1A. Risk Factors in Allion Healthcare’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. Except to the extent required by applicable securities laws, Allion Healthcare undertakes no obligation to update any forward-looking statement contained herein, whether as a result of new information, future events, or otherwise.

(1) Includes a $3,950 charge related to the Company’s litigation settlement with Oris Medical Systems, Inc. for the three months ended March 31, 2008.

EBITDA refers to net income before interest, income tax expense, and depreciation and amortization. Allion considers EBITDA to be a good indication of the Company's ability to generate cash flow in order to liquidate liabilities and reinvest in the Company. Adjusted EBITDA excludes the change in fair value of warrants, non-cash stock compensation expense and the litigation settlement related to the Company’s litigation with Oris Medical Systems, Inc., to reflect comparable year over year EBITDA performance and provide investors with supplemental information to assess recurring EBITDA performance. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP and should not be considered a substitute for net income as a measure of performance.