Napo Pharmaceuticals

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Block Listing of Shares

South San Francisco, California, December 1, 2006 - Napo Pharmaceuticals, Inc., (LSE: NAPL), which focuses on the development and commercialization of proprietary pharmaceuticals for the global marketplace in collaboration with local partners, announces that an application has been made to London Stock Exchange plc and the UK Listing Authority for the block listing of 3,800,000 ordinary shares of US$0.0001 each. These shares may be issued pursuant to the exercise of options by current and former employees and directors under the Company's 2001 and 2006 Equity Incentive Plans. The ordinary shares will rank pari passu with the existing ordinary shares in the capital of the Company.

For more information please contact:

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

Charles Thompson, Chief Financial Officer
+1 (650) 616-1902

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