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Nephros Reports 2012 Fourth Quarter and Full Year Financial Results
Date:3/4/2013

ffective July 1, 2011 and $1,300,000 on February 4, 2013 under a bridge loan and security agreement with Lambda Investors LLC.

Dialysis and Hospital Applications – Ultrafilters

For 2012, Nephros recorded approximately $1,010,000 of sales related to its water and bicarbonate ultrafiltration products, a 63% increase over the prior year.  We believe that more stringent standards for dialysis water purity from the Association for the Advancement of Medical Instruments (AAMI), bundling of dialysis reimbursement payments, and the Affordable Care Act initiatives which relate hospital reimbursement rates to infection control compliance can provide positive momentum for increased adoption of Nephros ultrafiltration products.  Following the execution of the Medica license and supply agreement, we are now offering a full range of point-of-use filters for hospital infection control, including SafeSpout and SafeShower filters, worldwide.  In February 2013, Nephros and Chem-Aqua, Inc. announced that the companies signed a non-exclusive distributor agreement for Chem-Aqua to distribute Nephros's innovative ultrafilters in North America.

Military Applications – Ultrafilters

In response to a Special Notice Announcement from the U.S. Army, Nephros submitted its Individual Water Treatment Device (IWTD) device containing the Nephros proprietary ultrafilter technology for consideration as part of a standard issue personal hydration pack for soldiers in the field.  Nephros has been informed by the Military Government Review Agency that its IWTD has been validated to meet the military's NSF P248 standard as a microbiological water treatment device for military operations.  In April 2012, Nephros presented its IWTD as part of the Experimental Forward Operating Base demonstration and assessment event at Camp Lejeune in North Carolina.  The IWTD
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