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Nephros Receives Non-Compliance Notification from AMEX
Date:9/18/2008

NEW YORK, Sept. 18 /PRNewswire-FirstCall/ -- Nephros, Inc. (Amex: NEP) today announced that the Company has received notice from the staff of the American Stock Exchange (AMEX) indicating that the Company is not in compliance with certain conditions of the continued listing standards of Section 1003 of the AMEX Company Guide. Specifically, AMEX noted the Company's failure to comply with Section 1003(a)(iii) of the AMEX Company Guide relating to stockholders' equity of less than $6,000,000 and losses from continuing operations and net losses in its five most recent fiscal years. The notice was based on a review by the AMEX of publicly available information. As the Company reported it its Quarterly Report on Form 10-Q filed on August 14, 2008, it had total stockholders' equity of approximately $4.8 million at June 30, 2008.

The Company has been afforded the opportunity to submit a plan of compliance to the AMEX by October 13, 2008 advising AMEX of the actions the Company has taken, or will take, that would bring it into compliance with the continued listing standard identified above by April 30, 2009. If AMEX accepts the plan, then the Company may be able to continue its listing during the plan period up to April 30, 2009, during which time the Company will be subject to periodic review to determine whether it is making progress consistent with the plan. If AMEX does not accept the Company's plan, or even if accepted, if the Company is not in compliance with the continued listing standards at the end of the plan period or the Company does not make progress consistent with the plan during such period, then AMEX may initiate delisting proceedings.

The Company is considering what actions it may take to regain compliance with the A
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SOURCE Nephros, Inc.
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