Nephros Appoints James S. Scibetta to Board of Directors

Appoints James S. Scibetta to Board of Directors

YORK, NY - November 20, 2007 - Nephros, Inc.

(AMEX: NEP), a medical device company focused on developing

advanced filtration products for ESRD therapy and water purification, announced

today that Mr. James S. Scibetta was appointed on November 16, 2007 to serve

its Board of Directors. Mr. Scibetta is a highly-respected healthcare

industry executive with more than 19 years of experience in corporate

pleased to welcome such an experienced healthcare industry executive to our

Board of Directors," said Norman J. Barta, Chairman and Chief Executive Officer

of Nephros. "Jim brings to Nephros substantial industry knowledge and

management experience. As we continue our transition and drive our development

and marketing programs forward, Jim's experience and proven track record in

corporate strategy will be a valuable asset to the Company's

Scibetta was most recently Chief Financial Officer of Bioenvision, Inc. from

December 2006 until its acquisition by Genzyme, Inc. (Nasdaq: GENZ) in October

2007. From September 2001 to November 2006, Mr. Scibetta was

Executive Vice President & CFO of Merrimack Pharmaceuticals, Inc., a

biopharmaceutical company focused on discovery and development of novel

therapies for autoimmune disease and cancer, and he was a member of the Board

Directors of Merrimack from April 1998 to March 2004. Mr. Scibetta

formerly served as a senior investment banker at Shattuck Hammond Partners,

from 1997 to 2001 and PaineWebber Inc. from 1988 to 1997, providing capital

acquisition, M&A and strategic advisory services to healthcare

Scibetta is currently a member of the Board of Directors and Audit Committee

Chairman of Labopharm, Inc. (Nasdaq:DDSS, TSX:DDS), an international specialty

pharmaceutical company focused on improving existing drugs by incorporating

proprietary, advanced controlled-release technologies.

honored to join Nephros' Board of Directors," said Mr. Scibetta. "I look forward

to working actively with the entire Nephros management team as they move the

Company's products forward and advance the Company's strategic business

Scibetta holds a B.S. in Physics from Wake Forest University, and an M.B.A.

Finance from the University of Michigan. He completed executive education

studies in the Harvard Business School Leadership & Strategy in

Pharmaceuticals and Biotechnology program.

September 27, 2007, Nephros received a warning letter from the American Stock

Exchange ("the AMEX") stating that the staff of the Amex Listing Qualifications

Department has determined that Nephros was not in compliance with Section

121B(2)(c) of the Amex Company Guide, requiring that at least 50% of the

directors of the Board of Directors of Nephros are independent

directors. Pursuant to the warning letter, the AMEX allowed Nephros

until December 26, 2007 to regain compliance with the independence

result of the appointment of Mr. Scibetta as an independent Director to Nephros'

Board, the Company believes that it now fulfills the requirements of Section

121B(2)(c) of the Amex Company Guide.

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. The Nephros HDF system is designed

remove a range of harmful substances more effectively, and more

cost-effectively, 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 products are sold and distributed

throughout Europe and are currently being used in over fifty clinics in

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

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

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

filter out many viruses and parasites. The DSU proprietary design provides

dual-stage filtration which reduces the risk of filtration failure. With an

initial focus on health care, the DSU is in a pilot-use program at a major

medical center and has been selected for further development by the U.S. Marine

information on Nephros please visit the Company's website,

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

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

include statements regarding the efficacy and intended use of the

under development, the timelines for bringing such products to market and the

availability of funding sources for continued development of such products

other statements that are not historical facts, including statements which

be preceded by the words "intends," "may," "will," "plans," "expects,"

"anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes,"

"potential" or similar words. For such statements, the Company 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 Company's 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 to satisfy its obligations when they become due and

payable and meet its anticipated cash needs and may not be able to obtain

funding if and when needed or on terms favorable to it in order to continue

operations or fund its clinical trials; (ii) Nephros may not be able to continue

as a going concern; (iii) Nephros may be unable to show progress consistent

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; (iv) products that appeared promising to Nephros in research

or clinical trials may not demonstrate anticipated efficacy, safety or cost

savings in subsequent pre-clinical or clinical trials; (v) Nephros may not

obtain appropriate or necessary governmental approvals to achieve its business

plan or effectively market its products; (vi) Nephros may encounter

unanticipated internal control deficiencies or weaknesses or ineffective

disclosure controls and procedures; (vii) HDF therapy may not be accepted in

United States and/or Nephros' technology and products may not be accepted in

current or future target markets, which could lead to failure to achieve market

penetration of Nephros' products; (viii) Nephros may not be able to sell its

ESRD therapy or water filtration products at competitive prices or profitably;

(ix) Nephros may not be able to secure or enforce adequate legal protection,

including patent protection, for its products; (x) FDA approval relating to

Nephros' OLpur HD190 filter may not facilitate or have any effect on the