Contact:
Evan Smith, CFA / Erica Pettit
(212) 896-1251 / (212) 896-1248
esmith@kcsa.com / epettit@kcsa.com

Nephros, Inc. Announces pricing of Initial Public Offering of it's Common Stock

NEW YORK, September 22, 2004 -- Nephros, Inc. announced the pricing of its initial public offering of 2,100,000 shares of its common stock at $6.00 per share, before underwriting discounts and commissions. Nephros has granted the underwriters an option to purchase up to an additional 315,000 shares to cover any over-allotments. All shares are being offered by Nephros.

The shares began trading yesterday on the American Stock Exchange under the symbol “NEP.”

The Shemano Group acted as the lead underwriter of the offering, with National Securities Corporation acting as co-manager of the offering.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. This communication 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 state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the final prospectus relating to the offering may be obtained by contacting The Shemano Group, 601 California Street, Suite 1150, San Francisco, CA 94108, by phone at 415-274-3200 or fax at 415-274-3238.

About Nephros, Inc.

Nephros, 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 by the irreversible loss of kidney function. Nephros believes that its products are designed to remove a range of harmful substances more effectively, and more cost-effectively, than existing treatment methods; particularly with respect to substances known collectively as "middle molecules", due to their molecular weight, that have been found to contribute to such conditions as carpal tunnel syndrome, dialysis related amyloidosis and degenerative bone disease in the ESRD patient.

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