Jan 18, 2006

Nephros Announces First Order From Major U.S. Hospital For Proprietary Water Filtration System

The Nephros Dual Stage Ultrafilter incorporates the company's unique and proprietary dual stage filter architecture.

Nephros, Inc. announced its first purchase order from a major hospital in New York City for its new proprietary water filtration device. The hospital has placed an initial order for Nephros' new Dual Stage Ultrafilter (DSU), a water filtration system that will be used initially in the hospital's patient showers. The Nephros DSU represents a new and complimentary product line to Nephros' existing End Stage Renal Disease therapy business.

The Nephros DSU incorporates the company's unique and proprietary dual stage filter architecture. The Nephros DSU is designed to remove a broad range of bacteria, viral agents and toxic substances, including salmonella, hepatitis, HIV, Ebola virus, ricin toxin, legionella, fungi and E-coli. Nephros believes the DSU removes these harmful substances more effectively than other water filters currently available.

"This is an exciting diversification for us, and marks an important starting point for Nephros in further developing and marketing our unique new water filtration technology," said Norman Barta, Nephros CEO. "Our research and development work on the OLpur H2H and MD filter technologies for End Stage Renal Disease therapy provided us with the foundations for a proprietary multi-stage water filter that is cost effective, extremely reliable and long-lasting.

“Water contamination is a critical and ongoing issue; the recent Katrina and Wilma storms drove that point home all too clearly. We believe the Nephros DSU can offer a robust solution to a broad range of contaminated water problems. Hospitals are particularly stringent in their water quality requirements; transplant patients and other individuals whose immune systems are compromised can face a substantial infection risk in drinking or bathing with standard tap water that would generally not present a danger to individuals with normal immune function. With over 5,000 registered hospitals in the U.S. alone, we believe the hospital shower and faucet market can offer us a valuable opportunity as a first step in water filtration."

Nephros is investigating a range of commercial, industrial and retail opportunities for its DSU technology.