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Nephros Extends Rights Offering
Date:2/28/2011

RIVER EDGE, N.J., Feb. 28, 2011 /PRNewswire/ -- Nephros, Inc. (OTC Bulletin Board: NEPH), a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification, today announced the extension of the expiration date of its ongoing rights offering to 5:00 p.m. Eastern time, Thursday, March 3, 2011.

The rights offering was previously scheduled to expire at 5:00 p.m. Eastern time on February 28, 2011.

During the extended offering period for the rights offering, any person who received subscription rights from Nephros during the original offering period may exercise those rights that have not already been exercised. Other than the extension of the expiration date of the rights offering, all of the offering terms described in the prospectus dated January 31, 2011, remain the same and apply during the extended period of the offering.

Under the terms of the rights offering described in the prospectus, Nephros has distributed at no charge non-transferable subscription rights to purchase up to an aggregate of 175,000,000 units to stockholders who owned shares of Nephros common stock as of the close of business on January 31, 2011, which is the record date for the rights offering.  Each holder of record as of the close of business on the record date has received one subscription right for each share of common stock of Nephros owned at the close of business on the record date.

Each subscription right entitles the holder to purchase 4.185496618 units at a subscription price of $0.02 per unit.   Each unit consists of one share of common stock and a warrant to purchase 0.924532845 shares of common stock at an exercise price of $0.02 per share for a period of five years following the issue date of the warrant.  No fractional units may be purchased and therefore no fractional shares or w
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