North American Scientific Announces Closing of $15.5 Million Private Placement of...

North American Scientific Announces Closing of $15.5 Million Private Placement of Common Stock

CHATSWORTH, Calif.--(Business Wire)--North American Scientific, Inc. (Nasdaq:NASI) announced today the
closing on January 18, 2008 of a private placement of shares of its
common stock and the concurrent issuance of warrants for the purchase
of common stock. The Company has received gross proceeds of $15.5
million from the financing which will be used for continued
development of ClearPath(TM), the Company's breast brachytherapy
device, as well as working capital.

Three Arch Partners led the private placement and has invested $10
million. CHL Medical Partners invested $3 million and SF Capital
Partners invested $2.5 million. Oppenheimer & Co. acted as the sole
placement agent for the transaction. The private placement was
approved by a committee of the Company's Board of Directors consisting
only of independent directors, and by the holders of a majority of the
Company's outstanding common stock.

John B. Rush, President and Chief Executive Officer of North
American Scientific, stated, "We are pleased to complete this
financing, and we especially appreciate the continued support of Three
Arch Partners and SF Capital Partners. We look forward to the success
of our ClearPath product and continued sales growth in 2008."

The private placement increased the Company's stockholders' equity
from $753,000, as reported in the Company's Quarterly Report on Form
10-Q for the quarter ended July 31, 2007, which included the Company's
most recently filed balance sheet, to proforma stockholders' equity of
$14,868,000 assuming estimated closing costs of $1,385,000, and
excluding financial results subsequent to July 31, 2007. The proforma
stockholders' equity exceeds the $2.5 million minimum stockholders'
equity requirement for listing on the Nasdaq Capital Market.

The investors have been issued 63,008,140 shares of the Company's
common stock at $0.246 per share as well as warrants to purchase
3,150,407 shares of common stock at an exercise price of $0.246 per
share. The warrants are exercisable beginning 180 days after the date
of closing until 7 years after the date of closing.

The securities sold in this private placement have not been
registered under the Securities Act of 1933, as amended, and may not
be offered or sold in the United States in the absence of an effective
registration statement or exemption from registration requirements.
North American Scientific agreed to file a registration statement
after the closing of the transaction for purposes of registering the
resale of the shares of common stock issued in the private placement
and the shares of common stock issuable upon exercise of the warrants.
In connection with this transaction, the investors and the directors
and executive officers of the Company have executed lock-up agreements
restricting their ability to sell shares of the Company's common stock
for a period of 180 days following the closing.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of the securities nor shall there
be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification of the securities under the securities laws of any such
state.

About North American Scientific

North American Scientific is a leader in radiation therapy in the
fight against cancer. Its innovative products provide physicians with
tools for the treatment of various types of cancers. They include
Prospera(R) brachytherapy seeds and SurTRAK(TM) needles and strands
used primarily in the treatment of prostate cancer. In addition, the
Company has been gaining clinical experience with its first generation
ClearPath(TM) multi-channel catheter breast brachytherapy devices in
2007, and intends to launch the second generation devices in 2008.
They are the only such devices approved for both high dose and
continuous release, or low dose, radiation treatments. The devices are
designed to provide flexible, precise dose conformance and an
innovative delivery system that is intended to offer the more advanced
form of brachytherapy for the treatment of breast cancer. Please visit
www.nasmedical.com for more information.

Statements included in this release that are not historical facts
may be considered forward-looking statements that are subject to a
variety of risks and uncertainties. There are a number of important
factors that could cause actual results to differ materially from
those expressed in any forward-looking statements made by the Company
including, but not limited to, the impact of competitive products and
pricing, technological changes, changes in relationships with
strategic partners and dependence upon strategic partners for the
performance of critical activities under collaborative agreements, the
ability of the Company to successfully directly market and sell its
products, uncertainties relating to patent protection and regulatory
approval, the stable supply of appropriate isotopes, research and
development estimates, market opportunities, risks associated with
strategic opportunities or acquisitions the Company may pursue and the
risk factors included in the Company's filings with the Securities and
Exchange Commission. Any forward-looking statements contained in this
news release speak only as of the date of this release, and the
Company undertakes no obligation to revise or update any
forward-looking statements, whether as a result of new information,
future results or otherwise.

North American Scientific, Inc.
Jim Klingler, CFO, 818-734-8600
IR@nasmedical.com
or
Investor:
Doug Sherk
dsherk@evcgroup.com
Jennifer Beugelmans
jbeugelmans@evcgroup.com
415-896-6820
or
Media:
Steve DiMattia, 646-277-0786
sdimattia@evcgroup.com

Copyright Business Wire 2008