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Nephros Reports 2009 Third Quarter Financial Results
Date:11/12/2009

RIVER EDGE, N.J., Nov. 12 /PRNewswire-FirstCall/ -- Nephros, Inc. (OTC Bulletin Board: NEPH) announced today financial results for the three month period ended September 30, 2009.

"During the third quarter, Nephros continued to expand revenues while containing expenses," said Ernest A. Elgin, President and CEO of Nephros. "Nephros was awarded a $2.0 million research grant to continue development of filtration products for the U.S. military. In July, we received 510(k) approval for our DSU technology and have now signed initial distributor agreements for this product. Separately, we are still awaiting a final decision from the FDA on the pending applications for our OLpur(TM) H2H(TM) module and OLpur(TM) MD 220 filter."

Financial Performance for the Third Quarter Ended September 30, 2009.

For the quarter ended September 30, 2009, Nephros reported revenues of approximately $711,000 compared to approximately $393,000 for the three months ended September 30, 2008. Total revenues increased approximately $318,000 during the three months ended September 30, 2009 over the same period in 2008. The increase of approximately 81% was due primarily to increased revenue of approximately $172,000 related to our contract with the U.S. Office of Naval Research ("ONR") and $98,000 in sales of our DSU for the three months ended September 30, 2009 whereas we had no DSU revenue in the same period in 2008. In addition, sales of our MD filters in our target European market were $48,000 higher in the three months ended September 30, 2009 compared to the same period in 2008. Unit sales in Europe were slightly lower in the three months ended September 30, 2009 compared to the same period in 2008 but were not the result of decreased customer orders, but rather due to production delays resulting in deferment of shipments.

Operating expenses for the three months ended September 30, 2009 were approximately $791,000 compared with $1,5
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SOURCE Nephros, Inc.
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