Nephros, Inc. (OTCQB: NEPH) a commercial stage medical device company that develops and sells high performance liquid purification ultrafilters and an on-line mid-dilution hemodiafiltration system for use with a hemodialysis (HD) machine for the treatment of patients with End Stage Renal Disease (ESRD), today announced that it has entered into definitive agreements to sell 4,059,994 shares of common stock at a purchase price of $0.30 per share to institutional and accredited investors. In connection with the offering, the investors will also receive warrants to purchase up to an aggregate of 4,059,994 shares of common stock with an exercise price of $0.30 per share and are exercisable for a five year term. The transaction is expected to close on or about March 22, 2017, subject to satisfying customary closing conditi ons.

Maxim Group LLC is acting as the sole placement agent for the offering.

About Nephros, Inc.

Nephros is a commercial stage medical device company that develops and sells high performance liquid purification filters, as well as a hemodiafiltration system for the treatment of patients with end stage renal disease. Its filters, which it calls ultrafilters, are used primarily in medical applications. Nephros ultrafilters are used by dialysis centers for the removal of biological contaminants from the water and bicarbonate concentrate feeding hemodialysis devices. Additionally, Nephros ultrafilters are used in hospitals and medical clinics as an aid in infection control by retaining bacteria (e.g., Legionella, Pseudomonas), virus and endotoxin from water used by patients. For more information about Nephros, please visit the company's website at www.nephros.com.