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Nephros Reports 2010 First Quarter Financial Results
Date:5/13/2010

logical contaminants from water and bicarbonate concentrate used in hemodialysis procedures.  Nephros is investigating a range of commercial, industrial and retail opportunities for its DSU technology.  On March 23, 2010, Nephros announced a product development agreement with STERIS Corporation.

Military Product Development

Nephros has contracted with the Office of Naval Research to develop an advanced water purification system for military field use. Nephros' proprietary dual stage cold sterilization ultrafilter will form the basis of the portable system. Nephros is continuing the development of its dual stage ultra reliable personal water filtration system under support from its U.S. Department of Defense appropriation and has completed initial concept development. Once work on this initial project was completed in August 2009, we were awarded a new $1.8 million research contract from the Office of Naval Research for continued development of a potable dual-stage military water purifying filter.  We have also introduced the DSU to various government agencies as a solution to providing potable water in certain emergency response situations.

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. The Nep
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