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

os received 510(k) marketing approval from the FDA for the DSU to be used to filter biological contaminants from water and bicarbonate concentrate used in hemodialysis procedures. During the third quarter, Nephros signed agreements with two new distributors for distribution of the DSU for ultra pure dialysate in the U.S. Within the U.S., there are approximately 4,500 clinics providing over 50 million dialysis treatments to 350,000 patients annually. The DSU filter can be used as the last step in the water purification process to ensure ultra pure water for dialysis procedures. Nephros is investigating a range of additional commercial, industrial and retail opportunities for its DSU technology.

Military Product Development

On Aug. 31 2009, Nephros reported that it was awarded a new research contract from the U.S. ONR for development of a portable dual-stage military water purifying filter. The research contract is an expansion of the Company's prior ONR contract which was being performed as part of the Marine Corps Advanced Technology Demonstration (ATD) project. The primary objective of this expanded research program is to select concepts and functional prototype filter/pump units which were developed during the first phase of the project, and further develop them into smaller field-testable devices that can be used for military evaluation purposes. Nephros plans to conclude development and to conduct limited field testing in 2010. Nephros' proprietary dual stage cold sterilization ultrafilter will form the basis of the portable system. An advantage of the Nephros ultrafilter is the removal of viruses which are not removed with commercially available off-the-shelf microfilter devices. Such devices generally rely on a secondary chemical disinfection step to make the water safe to drink. The expanded ONR contract also includes research geared toward improving membrane performance, improving device durability, developing larger squad-lev
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SOURCE Nephros, Inc.
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