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Nephros Completes Bridge Financing and Announces Stockholder Rights Offering
Date:10/1/2010

arrants issued in the rights offering.  The term of the remaining Lambda Investors warrants will be increased to a five-year term, which is equal to the term of the warrants to be issued in the rights offering.

In connection with the proposed rights offering, Nephros has filed a registration statement on Form S-1 (File No. 333-169728), as may be amended, with the Securities and Exchange Commission (the "SEC"), which registration statement has not yet become effective.  The securities offered in the rights offering may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.  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 state in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state.  The securities may only be offered by means of a prospectus, copies of which may be obtained (when available) free of charge at the website maintained by the SEC at www.sec.gov or by contacting the Company's Chief Financial Officer at (201) 343-5202.  The prospectus will contain important information about the rights offering, and the company's stockholders are urged to read the prospectus carefully when available.

About Nephros, Inc.

Nephros, Inc., headquartered in River Edge, 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.  T
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SOURCE Nephros, Inc.
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