Napo Pharmaceuticals

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Napo Subs and Take Up of Funds Announcement

South San Francisco, California, October 22, 2007 -

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

Confirmation of subscriptions monies received and take up of Indicated Funds.

Napo Pharmaceuticals, Inc. ("Napo" or the "Company") announced on 28 September 2007 that it proposed to raise approximately GBP 2.0 million (approximately USD 4.0 million), gross of expenses, by way of a placing and subscription of new Common Shares.

The Company confirms that it has received the full amount of the monies payable under the subscriptions which total USD 2.3 million (approximately GBP 1.1 million).

In addition to the placing and subscription, the prospectus confirmed that the Company had received indications from certain potential investors of their interest in investing in Common Shares in advance of the annual meeting ("Indicated Funds") but who had not signed subscription agreements. As at the date of this announcement, the Company has not received any Indicated Funds.

The Annual Meeting to approve, inter alia, the disapplication of preemption rights on the shares to be issued pursuant to the placing and subscription will be held today at 10.00 a.m. PDT (6pm BST).

It is expected that admission to trading of the placing and subscription shares will occur and dealings will commence on Wednesday 24 October 2007.

For more information please contact:

Napo Pharmaceuticals, Inc.
Lisa Conte, Chief Executive Officer
(001) + 650 616 1902

Charles Thompson, Chief Financial Officer
(001) + 650 616 1903

Buchanan Communications
020 7466 5000
Tim Anderson, Mary-Jane Johnson

Nomura Code Securities Limited
020 7776 1205
Clare Terlouw

About Napo Pharmaceuticals, Inc.

The shares of Napo Pharmaceuticals, Inc. (the "Shares") have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Shares may not be offered or sold in the United States, or to, or for the account or benefit of, U.S. persons as such term is defined in Regulation S under the Securities Act except (1) in a transaction meeting the requirements of Regulation S under the Securities Act, (2) pursuant to an effective registration statement under the Securities Act, or (3) pursuant to an available exemption from the registration requirements of the Securities Act, in each case in accordance with all applicable securities laws, including applicable state securities laws of the United States.