Nephros

The Nephros Dual Stage Ultrafilter DSU is the basis for the Nephros line of water filtration products, which includes the MSU and SSU ultrafilters.

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For more information about Nephros, please visit the company's website at www.nephros.com.

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Nephros' DSU ultrafilters are being evaluated at several major U.S. medical centers for infection control.

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Nephros ultrafilter technology has also been selected for further development by the U.S. Marine Corps for purification of drinking water by soldiers in the field.

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The Nephros hemodiafiltration (HDF) system is designed to improve the quality of life for the End-Stage Renal Disease (ESRD) patient while addressing the critical financial and clinical needs of the care provider.

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As of June 30, 2011, Nephros had cash and cash equivalents in the amount of

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Nephros recognized net product revenues of approximately $809,000 in the corresponding period of 2010, a decrease of $172,000 or 21%.

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The Nephros DSU, MSU, and SSU are FDA cleared for the filtration of biological contaminants from water and bicarbonate concentrate used in hemodialysis procedures.

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Nephros' net loss increased $237,000 or 65% in the current year's second quarter primarily due to the reduction in revenue and increase in operating expenses in the second quarter of 2011 compared to the second quarter in 2010.

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The Nephros HDF system removes a range of harmful substances more effectively, and with greater capacity, than existing ESRD treatment methods, particularly with respect to substances known collectively as "middle molecules."

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