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Nephros Provides Corporate Update
Date:11/20/2008

he Nephros Prevent! Kit, for in-line applications such as ice machines and clinical equipment, provide immediate risk mitigation. There have been multiple reported outbreaks and deaths due to Legionnaire's disease this year in institutional facilities in the U.S. Legionnaire's disease is caused by a bacterium known as legionella pneumophila. Legionella can live in water and is often found in the plumbing systems of buildings such as hospitals, nursing and personal care facilities, ambulatory facilities and medical and dental practices. In cases where the levels of these pathogens may not pose much threat to healthy water users, immuno-compromised patients such as cancer, cystic fibrosis, HIV, organ transplant, and burn patients may have a substantial risk of infection. Nephros's DSU filtration products are an effective solution which can provide immediate safety from water borne pathogens including legionella.

Military Product Development

Nephros has contracted with the Office of Naval Research to develop an advanced water purification system for military field use. Nephros's proprietary dual stage cold sterilization ultrafilter will form the basis of the portable system. Nephros is continuing the development of its dual stage ultra reliable personal water filtration system under support from its U.S. Department of Defense (DoD) appropriation and has completed initial concept development. Initial prototypes are anticipated to be completed in the first half of 2009. With the additional appropriation from the DoD, Nephros will expand the program and plans to conclude development and to conduct limited field testing in 2009. Nephros generated approximately $50,000 of revenue in the third quarter of 2008 and $103,000 of revenue during the nine months ended September 30, 2008 from its U.S. Defense Department project.

Expense Reductions

Management has initiated actions to aggressively red
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SOURCE Nephros, Inc.
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