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

cations – Ultrafilters

In response to a Special Notice Announcement from the U.S. Army, Nephros submitted its Individual Water Purification Device (IWPD) 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 IWPD has been validated to meet the military's NSF P248 standard as a microbiological water treatment device for military operations.  The IWPD was evaluated by approximately 100 U.S. Marines and a Military Assessment Team.  To date, Nephros has shipped approximately 2,000 IWPDs 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 IWPDs; Nephros submitted its response to this RFP on February 25, 2013.  On March 29, 2013, we received notification from the U.S. Army that the Government has completed the initial evaluation of our proposal and found Nephros to be within the competitive range to commence negotiations.  We also received a request for 180 of our IWPDs to be used as test assets during the Limited User Evaluation phase of the source selection.  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.  We can provide no assurances that our RFP proposal will be accepted or that we will sell any products to the U.S. Army or U.S. Marines.

European Hemodiafiltration

Under the licensing agreement with Bellco, S.r.l., Nephros received the third and final installment payment of €600,000 on January 15, 2013.  Beginning on January 1, 2015 until December 31, 2016, Nephros will receive
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