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Nephros, Inc. Completes $1.25 Million Private Placement
Date:7/30/2009

RIVER EDGE, N.J., July 30 /PRNewswire-FirstCall/ -- Nephros, Inc. (OTC Bulletin Board: NEPH), a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification, today reported that it has completed a private placement of shares of its common stock and warrants to purchase additional common stock for aggregate proceeds of approximately $1.25 million.

"Nephros is pleased to have completed this financing, which was led by existing shareholders and represents what we believe is modest dilution of the company's current shareholder base," said Ernest Elgin, Chief Executive Officer. "These funds strengthen the company's balance sheet and provide working capital as we launch the company's recently FDA approved Dual Stage Ultrafilters and prepare to launch the company's OLpur MD220 Dialyzers and H2H Hemodiafiltration Module when approved in the U.S."

The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements. Nephros has agreed to file a registration statement covering the resale of the shares issued in the private placement, including the shares issuable upon exercise of the warrants. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Nephros, Inc.

Nephros, Inc., headquartered in River Edge, New Jersey, is a medical device company developing and marketing filtration products for therapeutic
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