American Stock Exchange Will Continue Nephros's Listing

Stock Exchange Will Continue Nephros's Listing

YORK -November 20, 2006 - Nephros, Inc. (AMEX:NEP)

announced that the staff of the American Stock Exchange (AMEX) has reviewed

Company's plan of compliance to meet the AMEX's continued listing standards and

will continue the Company's listing while the Company seeks to regain compliance

with the continued listing standards during the period ending January 17, 2008.

During the plan period, the Company must continue to provide the AMEX staff

updates regarding initiatives set forth in its plan of compliance. The Company

will be subject to periodic review by the AMEX staff during the plan period.

the Company is not in compliance with the continued listing standards at January

17, 2008 or the Company does not make progress consistent with the plan during

the plan period, then the AMEX may initiate immediate delisting

Company has received notices from AMEX that it is not in compliance with certain

conditions of the continued listing standards of Section 1003 of the AMEX

Company Guide. Specifically, AMEX noted the Company's failure to comply with

Section 1003(a)(i) of the AMEX Company Guide relating to shareholders' equity of

less than $2,000,000 and losses from continuing operations and/or net losses

two out of its three most recent fiscal years; Section 1003(a)(ii) of the AMEX

Company Guide relating to shareholders' equity of less than $4,000,000 and

losses from continuing operations and/or net losses in three out of its four

most recent fiscal years; and Section 1003(a)(iii) of the AMEX Company Guide

relating to shareholders' equity of less than $6,000,000 and losses from

continuing operations and/or net losses in its five most recent fiscal

Inc., headquartered in New York, is a medical device company developing and

marketing products 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

the irreversible loss of kidney function. Nephros believes that its products,

particularly its Mid-Dilution Hemodiafiltration therapy, are designed to

a range of harmful substances more effectively, and more cost-effectively,

existing ESRD treatment methods; particularly with respect to substances

collectively as "middle molecules," due to their molecular weight, that have

been found to contribute to such conditions as dialysis related amyloidosis,

carpal tunnel syndrome, degenerative bone disease and ultimately, to mortality

in the ESRD patient.

also markets a line of water filtration products, the Dual Stage Ultrafilter

(DSU). The Company's patented dual stage cold sterilization ultrafilter has the

capability to filter out bacteria and, due to its exceptional filtration

filter out many viruses and parasites. The Company considers the DSU a

significant breakthrough in providing affordable and reliable water filtration.

The DSU is based on Nephros's proprietary water filtration technology originally

designed for medical use in its H2H machine, and is a complimentary product

to the Company's main focus, the End Stage Renal Disease therapy

information on Nephros please visit the Company's website, www.nephros.com.

release contains certain "forward-looking statements" within the meaning of the

Private Securities Litigation Reform Act of 1995, as amended. Such statements

may include statements regarding the efficacy and intended use of Nephros's

technologies under development, the timelines for bringing such products to

market and the availability of funding sources for continued development of

products and other statements that are not historical facts, including

statements which may be preceded by the words "intends," "may," "will," "plans,"

"expects," "anticipates," "projects," "predicts," "estimates," "aims,"

"believes," "hopes," "potential" or similar words. For such statements, Nephros

claims the protection of the Private Securities Litigation Reform Act of 1995.

statements are not guarantees of future performance, are based on certain

assumptions and are subject to various known and unknown risks and

uncertainties, many of which are beyond the control of Nephros. Actual results

may differ materially from the expectations contained in the forward-looking

statements. Factors that may cause such differences include the risks that:

products that appeared promising to Nephros in research or clinical trials

not demonstrate anticipated efficacy, safety or cost savings in subsequent

pre-clinical or clinical trials; (ii) Nephros may not obtain appropriate or

necessary governmental approvals to achieve its business plan or effectively

market its products; (iii) product orders may be cancelled, patients currently

using Nephros's products may cease to do so and patients expected to begin using

Nephros's products may not; (iv) Nephros's technology and products may not be

accepted in current or future target markets, which could lead to the failure

achieve market penetration of Nephros's products; (v) Nephros may not be able to

sell its ESRD or water filtration products at competitive prices or profitably;

(vi) Nephros may not be able to satisfy its debt obligations when they become

due and payable; (vii) Nephros may not be able to build key relationships with

physicians, clinical groups and government agencies, pursue or increase sales

opportunities in Europe or elsewhere, or be the first to introduce

hemodiafiltration therapy in the United States; (viii) Nephros may not be able

to secure or enforce adequate legal protection, including patent protection,

its products; and (ix) Nephros

may be unable to show progress consistent with its plan of compliance to meet

the American Stock Exchange's continued listing standards or may be otherwise

unable to timely regain compliance with the AMEX listing standards.

detailed information about Nephros and the risk factors that may affect the

realization of forward-looking statements is set forth in Nephros's filings with

the Securities and Exchange Commission, including Nephros's Annual Report on

Form 10-KSB filed with the SEC for the fiscal year ended December 31, 2005

its Quarterly Report on Form 10-QSB filed with the SEC for the fiscal quarter

ended September 30, 2006. Investors and security holders are urged to read

documents free of charge on the SEC's web site at 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.