Crofelemer

A proprietary gastro-intestinal compound in clinical development for four distinct product indications

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Notification of Transactions of Directors, Persons Discharging Managerial Responsibility or Connected Persons

South San Francisco, California, November 19, 2007 - The Company provides below details of changes in the interests of Directors, Persons Discharging Managerial Responsibility or Connected Persons in the Ordinary Shares of Napo Pharmaceuticals, Inc.

On November 14, 2007, the following persons were granted options over an aggregate of 2,729,000 Ordinary Shares in the Company in the Napo Pharmaceuticals, Inc. 2006 Equity Incentive Plan

Name Role Number of Shares under Option Exercise Price (Pence) Vesting
Lisa A. Conte Chief Executive Officer 757,000 68 pence 36 months from date of grant
Pravin Chaturvedi, Ph.D. President and Chief Scientific Officer 400,000 68 pence 36 months from date of grant
Steven R. King, Ph.D. Vice-President 235,000 68 pence 36 months from date of grant
Charles Thompson Vice-President and Chief Financial Officer 137,000 68 pence 36 months from date of grant
Sir William Young Non-Executive Director 300,000 68 pence

75,000 immediate vesting, 225,000

24 months from date of grant

Jack Van Hulst Non-Executive Director 300,000 68 pence

75,000 immediate vesting, 225,000

24 months from date of grant

Dr. Gregory Stock Non-Executive Director 300,000 68 pence

75,000 immediate vesting, 225,000

24 months from date of grant

Thomas Van Dyck Non-Executive Director 300,000 68 pence

75,000 immediate vesting, 225,000

24 months from date of grant

In addition, the following persons were granted, outside of the company's equity incentive plans, and aggregate of 1,050,000 restricted stock awards which expire at the end of 24 months from the date of grant if the vesting conditions are met. The awards are conditional upon certain criteria being met including at 250 per cent. increase in value of Napo Commom Stock from its price at the time of the grants (68 pence). The grants were made on November 14, 2007.

Name Role Number of Restricted Shares Grant Price (Pence) Vesting
Lisa A. Conte Chief Executive Officer 300,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Pravin Chaturvedi, Ph.D. President and Chief Scientific Officer 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Steven R. King, Ph.D. Vice-President 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Charles Thompson Vice-President and Chief Financial Officer 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
M. Scott Harris, M.D. Vice-President and Chief Medical Officer 25,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Merfyn Williams, Ph.D. Vice-President Regulatory 25,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Sir William Young Non-Executive Director 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Jack Van Hulst Non-Executive Director 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Dr. Gregory Stock Non-Executive Director 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant
Thomas Van Dyck Non-Executive Director 100,000 68 pence Within 24 months from date of grant subject to terms of restricted stock grant

This notification relates to a transaction notified in accordance with Disclosure Rule 3.1.4R

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.