Nephros Initiates Pivotal U.S. Trial for OLpur H2H Hemodiafiltration Module and OLpur MD 220 Hemodiafilter

Initiates Pivotal U.S. Trial for OLpur H2H Hemodiafiltration Module and OLpur

MD 220 Hemodiafilter

YORK, NY - October 16, 2007

(AMEX:NEP) today announced that the Company has begun the pivotal human

clinical trial for its OLpur H2H Hemodiafiltration Module and OLpur MD 220

Hemodiafilter at the Columbia University Dialysis Center. Dr. Anthony

Valeri, M.D., Associate Professor of Clinical Medicine, Columbia University,

College of Physicians & Surgeons, NY is the site principal

investigator. Dr. Leonard Stern, M.D., FACP, FASN, Associate

Professor of Clinical Medicine at Columbia University, College of Physicians

& Surgeons in New York, will act as Coordinating Principal Investigator

patients will be enrolled and treated at the Bronx Dialysis Center with Dr.

Robert Lynn, M.D., Clinical Associate Professor of Medicine, Albert Einstein

College of Medicine, as the site principal investigator; and at DCI, North

Brunswick, New Jersey, with Dr. Toros Kapoian M.D., FACP, Associate Professor

Medicine, Robert Wood Johnson Medical School, as the site principal

prospective, multi-center, nonrandomized trial will enroll a total of 28

patients for treatment of end-stage renal disease (ESRD) with the Nephros

system. Subjects will receive 4 weeks of standard hemodialysis (HD)

therapy with an approved hemodialysis machine (control period) followed by

weeks of on-line hemodiafiltration (HDF) therapy using their current

hemodialysis machine in combination with the Nephros H2H Module, and the

Nephros MD 220 Hemodiafilter (test period).

primary objective of this study is to verify safety and clinical tolerance

on-line HDF using the Nephros MD 220 Hemodiafilter and the Nephros H2H Module

in conjunction with an approved hemodialysis machine. The secondary

objective of this study is to monitor subject blood chemistries including

beta-2-microglobulin and C-reactive protein. Quality of Life

assessments will be obtained during the fourth week of the control period and

during the final week of the test period.

End-Stage Renal Disease

to the 2007 U.S. Renal Data Survey, the U.S. ESRD patient population is expected

to approach 800,000 by 2020. Independent studies have

of up to 35% in mortality risk using HDF therapy. Additionally,

reductions in drug requirements, lower morbidity and lower infection rates

HDF technology represents a new standard of therapy for ESRD patients. Our

module and MD filter are designed to provide a cost-effective and user-friendly

means for hospitals and clinics to upgrade to mid-dilution HDF therapy without

replacing their current dialysis machines," said Norman J. Barta, Chairman and

CEO of Nephros. The Company believes that, upon approval, its

mid-dilution HDF technology would be the first approved online HDF therapy

OLpur MD 220 Hemodiafilter and OLpur H2H Hemodiafiltration

Nephros OLpur MD Hemodiafilter series received CE Marking in 2003 and is

currently in use in over 50 European clinics. The OLpur H2H

Hemodiafiltration Module is designed to convert the most common types of

hemodialysis machines to HDF therapy.

this year, Nephros received unconditional approval of its Investigational Device

Exemption (IDE) application from the U.S. Food and Drug Administration, allowing

it to proceed to clinical trials of the OLpur MD 220 Hemodiafilter and OLpur

H2H Hemodiafiltration Module. Upon successful completion of the

trial, Nephros plans to seek FDA approval to market both the OLpur H2H Module

and the OLpur MD Hemodiafilter series in the U.S., with a product launch

will be conducting demonstrations of the Company's OLpur H2H Hemodiafiltration

Module and OLpur MD Hemodiafilters at the American Society of

Nephrology (ASN) Renal Week in San Francisco, CA, November 1-5,

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 the

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

filtration failure. With an initial focus on health care, the DSU is in a

pilot-use program at a major U.S. medical center and has been selected for

further development by the U.S. Marine Corps.

information on Nephros please visit the Company's website,

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

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

statements include statements regarding the efficacy and intended use of the

Company's technologies under development, the timelines for bringing such

products to market and the availability of funding sources for continued

development of such 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,

the Company claims the protection of the Private Securities Litigation Reform

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

risks that: (i) Nephros may not be able to satisfy its obligations when

they become due and payable and meet its anticipated cash needs and may not

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

to continue as a going concern; (iii) 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; (iv) products that appeared

promising to Nephros in research or clinical trials may not demonstrate