Nephros to Present at Dutton Associates' ''Recognizing Opportunity'' Health Sciences SmallCap Conference in San Francisco May 31

Dutton Associates' "Recognizing Opportunity" Health Sciences SmallCap Conference

NEW YORK--(BUSINESS WIRE)--May 24, 2006--Nephros, Inc. (AMEX:NEP) will present at Dutton Associates' "Recognizing Opportunity" Health Sciences SmallCap Conference. Nephros, along with a select group of emerging growth healthcare, healthcare services, biotechnology, medical devices, and pharmaceutical companies will update investment professionals on business activities, trends and current developments.

The conference will take place at St. Regis Hotel in San Francisco on Wednesday, May 31 from 7:45 a.m. to 5 p.m. Norman Barta, Nephros CEO, will make a ten-minute presentation in the morning, which will be webcast and available on May 31, 2006 and thereafter on www.jmdutton.com at no charge. In the afternoon, the company will be meeting with smaller groups of investment professionals during two break-out sessions.

"We're very pleased to have this opportunity to address the investment community," said Mr. Barta. "There are now two major studies indicating a measurable reduction in mortality for chronic End Stage Renal Disease patients using hemodiafiltration (HDF) therapy instead of hemodialysis, which is currently the predominant therapy for patients in the U.S. Since we are driving to be the primary provider of on-line HDF therapy in the U.S. for the chronic ESRD patient, I think the time is right for us to highlight these studies and discuss our progress. In addition, we look forward to addressing our exciting diversification into water filtration."

For more conference information and registration, visit www.jmdutton.com.

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. Nephros also markets filtration products complimentary to its core ESRD therapy business. 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 ESRD 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 dialysis related amyloidosis, carpal tunnel syndrome, degenerative bone disease and ultimately, to mortality in the ESRD patient.

Forward Looking Statements
This news release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may include statements regarding the efficacy and intended use of Nephros'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, Nephros claims the protection of the Private Securities Litigation Reform Act of 1995.

Forward-looking 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 control of Nephros. Actual results may differ materially from the expectations contained in the forward-looking statements. Factors that may cause such differences include the risks that: (i) products, including Nephros's Dual Stage Ultrafilter (DSU) water filtration system, that appeared promising to Nephros in research or clinical trials to Nephros may not demonstrate anticipated efficacy, safety or cost savings in subsequent pre-clinical or clinical trials; (ii) Nephros may not obtain appropriate or necessary governmental approvals to achieve its business plan or effectively market its products; (iii) product orders may be cancelled, patients or customers currently using Nephros's products may cease to do so and patients or customers expected to begin using Nephros's products may not; (iv) Nephros's technology and products, including DSU technology, may not be accepted in current or future target markets, which could lead to the failure to achieve market penetration of Nephros's products; (v) Nephros may not be able to sell its ESRD or water filtration products at competitive prices or profitably; (vi) Nephros may not be able to secure or enforce adequate legal protection, including patent protection, for its products; (vii) the reliability, performance and endurance of Nephros' water filtration device and technology including its ability to remove a broad range of bacteria, viral agents and toxic substances, may not be as effective as Nephros believes it to be; and (viii) Nephros' water filtration technology may not achieve anticipated market acceptance including among hospitals, or that such technology may not be suitable for other commercial, industrial or retail opportunities. 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 Securities and Exchange Commission, including Nephros's Annual Report on Form 10-KSB filed with the SEC for the fiscal year ended December 31, 2005. Investors and security holders are urged to read those documents free of charge on the SEC's web site at 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.

About Dutton Associates
Dutton Associates, an international issuer-paid equity research firm, offers independent, fundamental research on over 120 small cap public companies. The company's 29 analysts are primarily CFA charterholders with, on average, over 20 years of experience at the major securities firms, provide research coverage on over 130 companies. For more information, visit www.jmdutton.com.

Contacts
For Nephros, Inc.
Cynthia DeMonte 718-706-5005
cdemonte@demonte.com

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