Nephros, Inc. Completes $1.25 Million Private Placement

RIVER EDGE, N.J., July 30 /PRNewswire-FirstCall/ -- Nephros, Inc. (OTC
Bulletin Board: NEPH), a medical device company developing and marketing
filtration products for therapeutic applications, infection control, and water
purification, today reported that it has completed a private placement of
shares of its common stock and warrants to purchase additional common stock
for aggregate proceeds of approximately $1.25 million.

"Nephros is pleased to have completed this financing, which was led by
existing shareholders and represents what we believe is modest dilution of the
company's current shareholder base," said Ernest Elgin, Chief Executive
Officer. "These funds strengthen the company's balance sheet and provide
working capital as we launch the company's recently FDA approved Dual Stage
Ultrafilters and prepare to launch the company's OLpur MD220 Dialyzers and H2H
Hemodiafiltration Module when approved in the U.S."

The securities sold in the 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 absent registration under such act and applicable state
securities laws or an applicable exemption from those registration
requirements. Nephros has agreed to file a registration statement covering the
resale of the shares issued in the private placement, including the shares
issuable upon exercise of the warrants. 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 jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such jurisdiction.

About Nephros, Inc.

Nephros, Inc., headquartered in River Edge, New Jersey, is a medical device
company developing and marketing filtration products for therapeutic
applications, infection control, and water purification.

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.
ESRD is a disease state characterized by the irreversible loss of kidney
function. 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." These molecules have been found to contribute to such conditions
as dialysis-related amyloidosis, carpal tunnel syndrome, degenerative bone
disease and, ultimately, mortality in the ESRD patient. Nephros ESRD products
are sold and distributed throughout Europe and are currently being used in
over fifty clinics in Europe.

The Nephros Dual Stage Ultra-filter (DSU) is the basis for Nephros's line of
water filtration products. The patented dual stage cold sterilization
ultrafilter has the capability to filter out bacteria and, due to its
exceptional filtration levels, filter out many viruses, parasites and
biotoxins. Sale of the DSU has begun at several major U.S. medical centers for
infection control and has been selected for further development by the U.S.
Marine Corps for purification of drinking water by soldiers in the field.

For more information on Nephros, please visit its website at
http://www.nephros.com/.

Forward-Looking Statements

Statements in this news release that are not historical facts constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "PSLRA"). Such statements may be preceded
by words such as "may," "plans," "expects," "believes," "hopes," "potential"
or similar words. For such statements, Nephros claims the protection of the
PSLRA.

Forward-looking statements are not guarantees of future performance, are based
on assumptions and are subject to various known and unknown risks and
uncertainties, many of which are beyond Nephros' control. Actual results may
differ materially from the expectations contained in the forward-looking
statements. Factors that may cause such differences include the risks that
Nephros may not be able: (i) to obtain additional funding when needed or on
favorable terms; (ii) to continue as a going concern; (iii) to obtain
appropriate or necessary governmental approvals to achieve its business plan
or effectively market its products; (iv) to have its technologies and products
accepted in current or future target markets; (v) to demonstrate in
pre-clinical or clinical trials the anticipated efficacy, safety or cost
savings of products that appeared promising to Nephros in research or clinical
trials; or (vi) to secure or enforce adequate legal protection, including
patent protection, for its products. More detailed information about Nephros
and the risk factors that may affect the realization of forward-looking
statements is set forth in Nephros' filings with the SEC, including Nephros'
Annual Report on Form 10-K for the fiscal year ended December 31, 2008.
Investors and security holders are encouraged to read these documents on the
SEC's website at http://www.sec.gov/. Nephros does not undertake to publicly
update or revise its forward-looking statements as a result of new
information, future events or otherwise.

SOURCE Nephros, Inc.

Eileen Sukumaran, eileen@nephros.com, +1-201-343-5202