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Nephros Rights Offering Registration Statement Declared Effective
Date:1/31/2011

the number of units each such stockholder subscribed for under the basic subscription privilege.

The subscription rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on February 28, 2011, unless Nephros extends the subscription period in its sole discretion, but in no event by more than 60 days from the date of the prospectus contained in the registration statement.

Nephros expects to mail, in the next few days, the final prospectus and other items necessary for exercising the rights to stockholders as of the close of business on the record date.  The prospectus will contain a description of the rights offering and other information.  Stockholders are urged to read the prospectus carefully when available.  Morrow & Co., LLC is the information agent for the rights offering. Stockholders may direct questions regarding the rights offering or requests for additional copies of the prospectus or other offering materials to Morrow & Co., LLC at (800) 414-4313, 407 West Avenue, Stamford, Connecticut 06902.  The rights and the underlying units have not been registered or qualified for offer or sale to stockholders of record in any jurisdiction outside the United States.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state.  The securities may only be offered by means of a prospectus, copies of which may be obtained (when available) free of charge at the website maintained by the SEC at www.sec.gov or by contacting the information agent for the rights offering at (800) 414-4313.  The prospectus will contain important information about the rights offering, and the company's stockholders are u
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SOURCE Nephros, Inc.
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