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Nephros Reports 2008 Fourth Quarter and Full Year Financial Results
Date:3/31/2009

liable 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 has introduced the DSU to various government agencies as a solution for providing potable water in certain emergency response situations.

Outlook for 2009

In 2009, Nephros plans to continue its efforts on commercialization activities. Primary goals for Nephros in 2009 include expansion of DSU product sales for institutional infection control and preparation for the anticipated launch of Nephros' OLpur(TM) MD 220 Hemodiafilter, OLpur(TM) H2H(TM) Hemodiafiltration Module, and DSU products for dialysis centers in the U.S. With over 5,000 registered hospitals in the United States alone, Nephros believes the hospital shower and faucet market represents a valuable opportunity in water filtration. The Company has established a goal in 2009 to gain a foothold at U.S. and European facilities that seek to become centers of excellence in infection control through the use of our DSU products.

About Nephros, Inc.

Nephros, Inc., headquartered in New Jersey, is a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification.

The Nephros hemodiafiltration (HDF) system is designed to improve the quality of life for the End-Stage Renal Disease (ESRD) patient while addressing the critical financial and clinical needs of the care provider. ESRD is a disease state characterized by the irreversible loss of kidney function. The Nephros HDF system removes a range of harmful substances more effectively, and with greater
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SOURCE Nephros, Inc.
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