Napo Pharmaceuticals

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Appointment of Jim Nash as Chief Operating Officer

South San Francisco, California, January 12, 2007 - Napo Pharmaceuticals, Inc., (LSE: NAPL), which focuses on the development and commercialization of proprietary pharmaceuticals for the global marketplace in collaboration with local partners, is pleased to announce today that James Nash, age 56, has joined the Company as its Chief Operating Officer (COO). Mr. Nash has almost 30 years of experience with pharmaceutical and biotechnology companies including Chiron Corporation, Millenium Pharmaceuticals and Monsanto/Searle. Most recently, Mr. Nash worked at Watson Pharmaceuticals as Executive Vice President, Technical Operations where he was responsible for manufacturing, quality and sourcing, managing seven manufacturing locations worldwide.

Mr. Nash's responsibilities at Napo will include overall development and commercial operations, in addition to all phases of manufacturing and supply, within the Company as Napo prepares for regulatory and marketing approval of its first product in 2008.

"I am very enthusiastic to be able to announce Jim's appointment as COO of Napo," said Lisa A. Conte, CEO of Napo. "His extensive experience is an extremely valuable addition to the Napo team as we prepare to launch our first product for global availability in the near future. Jim has successfully executed all phases of technical operations and worked with supply sources in India and other Asian countries. We look forward to his leadership in developing our low cost commercial manufacturing capability in conjunction with Glenmark Pharmaceuticals and evolving Napo's culture as globalisation continues to shape the pharmaceutical industry of the future."

Commenting on this announcement, James A. Nash added: "I am very happy to be joining Napo to help build a truly global pharmaceutical company. I'm confident that I can lead the operations while helping to shape the future strategic vision for Napo."

For more information please contact:

Napo Pharmaceuticals, Inc.
Lisa Conte, Chief Executive Officer
+1 (650) 616-1902

Charles Thompson, Chief Financial Officer
+1 (650) 616-1903

Buchanan Communications
+ 44 (0)20 7466 5000
Tim Anderson, Mary-Jane Johnson

Nomura Code Securities Limited
+44 (0)20 7776 1204
Juliet Thompson

About Napo
Napo Pharmaceuticals Inc., focuses on the development and commercialization of proprietary pharmaceuticals for the global marketplace in collaboration with local partners. Napo was founded in November 2001, and is based in California, USA with a subsidiary in Mumbai, India. Napo's late-stage proprietary gastro-intestinal compound, crofelemer, is in various stages of clinical development for four distinct product indications, including a late-stage Phase 3 program:

• CRO-HIV for AIDS diarrhea, Phase 3
• CRO-IBS for diarrhea irritable bowel syndrome (D-IBS), Phase 2
• CRO-ID for acute infectious diarrhea (including cholera), Phase 2
• CRO-PED for pediatric diarrhea, Phase 1

The FDA has granted fast-track status to CRO-IBS and CRO-HIV. Crofelemer, a proprietary patented agent, is extracted from Croton lechleri, a medicinal plant which can be sustainably harvested from several countries in South America. Napo also plans to develop an early clinical stage product, NP-500, for the treatment of insulin resistant diseases of Type II diabetes and metabolic syndrome (Syndrome X; pre-diabetic syndrome). Napo also has a plant library of approximately 2,300 medicinal plants from tropical regions and Napo has entered its first screening relationship associated with this collection. Currently, products are based on the chemical and biological diversity derived from plants with medicinal properties, but future products may be in-licensed from other sources. Napo has partnerships with Trine Pharmaceuticals, Inc. of the United States of America; Glenmark Pharmaceuticals Limited of India; and AsiaPharm Group Ltd. of China. For more information please visit www.napopharma.com

About Crofelemer

Crofelemer, a proprietary patented agent, is extracted from Croton lechleri, a medicinal plant which can be sustainably harvested from several countries in South America. Crofelemer is in various stages of clinical development for four distinct product indications, one in Phase 3, two in Phase 2 and one in Phase 1. These products have been tested in trials involving approximately 1500 patients in double-blind placebo-controlled, mostly published trials of AIDS diarrhea, diarrhea-predominant IBS, and acute infectious diarrhea. The products are generally well tolerated and have shown significant anti-diarrheal activities and improvement in gastrointestinal symptoms. Crofelemer produces several effects when administered orally providing for activity in several disease indications. Crofelemer's anti-secretory mechanism reduces excess fluid secreted into the gastro-intestinal tract, while its anti-inflammatory and analgesic activity may provide the rationale for its significant benefit in abdominal pain. Crofelemer acts locally in the intestines, with limited systemic exposure.