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

was evaluated by approximately 100 U.S. Marines and a Military Assessment Team.  To date, Nephros has shipped approximately 2,000 IWTD's to the U.S. armed forces, equating to approximately $200,000 of sales. In January 2013, the U.S. Army issued a request for proposal (RFP) relating to IWTD's, Nephros submitted its response to this RFP on February 25th.  The U.S. Army may award several, one or no contracts as a result of this solicitation.  The maximum quantity of all contracts combined is not to exceed 450,000 units or $45,000,000 over a 3 year period.  The RFP evaluation period may take up to 6 months before an award is made, if at all.

European Hemodiafiltration

Under the licensing agreement with Bellco, S.r.l., Nephros received the second installment payment of €750,000 in January 2012.  The third and final installment payment of €600,000 was received by Nephros on January 15, 2013.  Beginning on January 1, 2015 until December 31, 2016, Nephros expects to receive royalty payments from Bellco as part of the license agreement.  During the license period, Nephros no longer recognizes sales from the licensed territory, but rather licensing revenue and royalty payments.  For 2012, amortized license revenue from the Bellco agreement was $680,000.

U.S. On-line Mid-dilution Hemodiafiltration

In April 2012, Nephros received FDA 510(k) clearance to market the Company's on-line mid-dilution hemodiafiltration (mid HDF) system in the U.S. for the treatment of patients with chronic renal failure when used with a UF controlled hemodialysis machine that provides ultrapure dialysate in accordance with current AAMI/ANSI/ISO standards. Nephros intends to pursue a limited launch of its HDF system prior to expanding into the broader market. We are currently preparing our HDF system for a scaled market release and expect to have units placed in a select number of dialysis clinics in the second quarter of
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SOURCE Nephros, Inc.
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