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Nephros Reports First Quarter 2013 Financial Results
Date:5/8/2013

ash equivalents of $243,000.

As previously disclosed, Nephros' $3 million rights offering is expected to be completed on May 17, 2013.  In addition, Nephros is currently offering the holders of its 2011 warrants the opportunity to exercise those warrants at a discounted exercise price of $0.30 per share.

Dialysis and Hospital Applications – Ultrafilters

For the first quarter of 2013, Nephros recorded approximately $345,000 of sales related to its water and bicarbonate ultrafiltration products, a 42% increase over the same period in 2012.  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.  The plastic casing of our hospital ultrafilters contains BACTiglas.  BACTiglas releases silver ions at the surface of the plastic casing such that they are imparted to anything that touches it. Silver ions (through chemical bonding with amino acids) result in the killing of the bacteria that remains on the surface of the plastic.  This enables our hospital ultrafilters to be bactericidal to any touch contamination or any growth on the surface of the plastic in addition to their water treatment effect.  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.

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