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Evan Smith, CFA / Erica Pettit
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Nephros, Inc. Receives CE Mark Approval for the OLpr™ MD 190

New Product Designed to Improve Treatment for End-Stage Renal Disease

European Sales to Commence Immediately

NEW YORK – October 14, 2003 – Nephros, Inc, an innovative developer and provider of advanced End Stage Renal Disease (ESRD) therapy technology and products, today announced that it has received CE Marking for its
OLpr™ MD 190, an advanced proprietary filter designed for use in hemodiafiltration (HDF) therapy. Receipt of the CE Marking indicates that the OLpr™ MD 190 meets European medical device standards and allows Nephros to market the OLpr™ MD 190 within the European Union.

The OLpr™ MD 190, an advanced proprietary filter designed for use in HDF therapy, uniquely combines post-dilution and pre-dilution diafiltration into one simple-to-use device. The OLpr™ MD 190 has a unique design that achieves the superior urea clearance of post-dilution hemodiafiltration, while offering unsurpassed clearance of toxins in the middle-molecule range. The OLpr™ MD 190 functions on all current HDF machines, with no special accommodations required.

“We’re pleased to have reached this significant milestone,” said Norman Barta, president and chief executive officer of Nephros. “We’re looking forward to providing nephrologists and their patients in the European Union with the first filter designed specifically for hemodiafiltration. Based on our initial feedback from leading nephrologists, we believe that there will be a strong reception for this innovative, easy-to-use device in light of its potential to improve survival, increase the quality of life, and reduce medical costs for the ESRD patient.”

Nephros expects to commence sales of the OLpr™ MD 190 in Europe in the 4th quarter of 2003. Additionally, Nephros expects to submit data to the Food and Drug Administration (FDA) for clearance in the United States in the 2nd half of 2004.

According to the National Institutes of Health, there were approximately 340,000 ESRD patients in the US in 2002, with more than 1 million patients worldwide. The net growth rate for ESRD is estimated at 7-9 percent per year. HDF is viewed as the most innovative treatment available for ESRD because it combines the diffusion process of hemodialysis with the convection process of hemofiltration to eliminate waste products and excess water. In earlier studies, patients on HDF have experienced improvements in blood pressure and anemia, as much as a 40 percent reduction in carpal tunnel syndrome surgeries (a marker for morbidity) and as much as a 10 percent mortality reduction versus a hemodialysis-based control group.

The CE Marking for the OLpr™ MD 190 was supported by a clinical study performed under the supervision of Dr. Bernard Canaud and Dr. Detlef Krieter in Montpellier, France, evaluating the filter’s safety and efficacy. Through the OLpr™ MD 190, Nephros has developed a proprietary mid-dilution HDF filter that provides higher filtration rates, superior small molecule clearance, and unsurpassed middle molecule clearance when compared to existing pre- or post-dilution HDF treatments, and offers a substantial improvement over conventional high flux hemodialysis in clearing uremic toxins.

About Nephros, Inc.

Nephros, Inc. has developed End Stage Renal Disease (ESRD) therapy products that dramatically improve clinical efficacy. Nephros has brought efficient mid-dilution diafiltration to the ESRD therapy domain with a unique and proprietary fluid management system offering optimized removal of renal toxins across the molecular spectrum. Nephros products also remove a range of harmful substances not effectively removed by existing dialysis methods; addressed specifically are substances that are part of a group known as middle molecules, due to their molecular weight, that contribute to such conditions as carpal tunnel syndrome, dialysis related amyloidosis, and degenerative bone disease in the ESRD patient. For more information, please visit the Company’s website at www.nephros.com.

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