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Nephros Reports 2010 Second Quarter Financial Results
Date:8/16/2010

ximately $365,000 or $.01 per basic and diluted common share for the second quarter of 2010 versus a net loss of approximately $413,000 or $.01 per basic and diluted common share in the second quarter of 2009. Nephros' net loss decreased $48,000 in the current quarter primarily due to the approximately $228,000 or 38% reduction in loss from operations in the second quarter of 2010 compared to the same period in 2009.  This reduction in loss from operations was offset by a reduction in other income.  Other income of approximately $182,000, resulting from receipt of a tax credit refund, was recognized in the three months ended June 30, 2009 while there was no other income realized for the three months June 30, 2010.

End-Stage Renal Disease (ESRD) Products

Nephros markets its OLpur™ mid-dilution dialyzers in Canada and the European Union under regulatory approval in each of these markets, respectively.  In November 2008, Nephros submitted a 510(k) application for U.S. marketing approval of its OLpur™ H2H™ module and OLpur™ MD 220 filter.  On June 30, 2010, Nephros received a rejection letter from the FDA stating that the Nephros hemodiafiltration system was not substantially equivalent to approved hemodialysis treatments.  Nephros has engaged King & Spalding LLP as regulatory counsel and has scheduled a meeting with the FDA on September 10, 2010 to discuss the issues raised in the FDA's letter as well as the process for moving forward.  Based upon the in-person meeting with the FDA reviewers, the company will determine the appropriate course of action, which could include filing a new 510(k) application or filing an appeal related to the current application.  Nephros believes that, if approved, its technology would be the first FDA-approved on-line HDF therapy available in the U.S.

Water Ultrafiltration Products

In 2009, Nephros received FDA approval to market the D
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SOURCE Nephros, Inc.
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