Nephros Common Stock Now Quoted in Pink Sheets

Nephros Common Stock Now Quoted in Pink

January 26, 2009 --- Nephros, Inc. (Pink Sheets: NEPH),

a medical device company developing and marketing filtration products for

therapeutic applications, infection control, and water purification, today announced that its common stock

is now quoted in the Pink Sheets under the symbol "NEPH." The

Company also announced that its common stock has been suspended from trading on

the NYSE Alternext US LLC (formerly, the American Stock Exchange or

"AMEX") pending its delisting by

AMEX due to noncompliance with certain continued listing

As previously announced, the Company has

identified a market maker who has agreed to apply for the quotation of the

Company's common stock on the OTC Bulletin Board. The Company

is working with the market maker to have the quotation on the OTC

Bulletin Board effective as soon as possible, but the process, if

successful, could take up to several weeks.

Nephros, Inc., headquartered in

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 Ultrafilter (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. The DSU is in pilot-use programs 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/.

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'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: (i) have its common

stock quoted on the OTC Bulletin Board; (ii) to obtain funding if and when

needed or on favorable terms; (iii) to continue as a going concern; (iv) 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; (v) to obtain appropriate or necessary governmental approvals

to achieve its business plan or effectively market its products; (vi) to have

its technologies and products accepted in current or future target markets; or

(viii) 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's filings with the SEC, including Nephros's Annual Report

on Form 10-KSB filed with the SEC for the fiscal year ended December 31, 2007,

and Nephros's Quarterly Report on Form 10-Q for the periods ended September 30,

2008. Investors and security holders are urged to read these documents free of

charge 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.

Contact: Gerald J. Kochanski, CFO at

201. 343. 5202 ext 102.