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NxStage Medical Reports Fourth Quarter and Full Year 2007 Results
Date:2/12/2008

174 centers and 1,022 patients at the end of the fourth quarter of 2006 and 306 centers and 1,957 patients at the end of the third quarter of 2007. NxStage also continued to expand use of the PureFlow SL(TM) to a broader customer base and at the end of the fourth quarter 2007, PureFlow penetration reached 70% of all System One machines in the chronic home dialysis market. Expanding penetration of PureFlow among existing and new customers is an important element of NxStage's ongoing focus to improve margins.

NxStage reported a net loss of $17.4 million, or ($0.47) per share, for the fourth quarter of 2007 compared with a net loss of $10.4 million, or ($0.37) per share, for the fourth quarter of 2006 and $16.1 million, or ($0.54) per share for the third quarter of 2007, reflecting improved gross margins offset by increased spending in sales and marketing in support of the ongoing launch of the System One and increased distribution expenses in the chronic home hemodialysis market. Fourth quarter 2007 net loss includes $3.2 million in charges primarily related to the acquisition of Medisystems that are not expected to recur.

For the full year 2007, the Company's net loss was $58.4 million, or ($1.86) per share, compared to a net loss of $39.6 million, or ($1.60) per share, in 2006, reflecting improved gross margins offset by increased spending in operating expenses as the Company continues to build its infrastructure to support the business.

Cash, cash equivalents and short term investments as of December 31, 2007 were $34.3 million, compared to $61.8 million at the end of 2006.

"2007 was a transformational year for NxStage. We completed a major, strategic acquisition that dramatically increased the Company's scale and capabilities. We are now in three dialysis markets: home, critical care and in-center," said Jeffrey H. Burbank, President & CEO of NxStage Medical. "In our existing business, we formed key supply and distribution agreements a
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SOURCE NxStage Medical, Inc.
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