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Napo Pharmaceuticals Receives Biotech Humanitarian Award Nomination

South San Francisco, California, April 30, 2009 - Napo Pharmaceuticals, Inc., ("Napo") is proud to announce that the Company is participating as a nominee in the first annual Biotech Humanitarian Award.

BIO, the Biotech Industry Organization, comprising membership of over 1200 biotechnology companies, created the Biotech Humanitarian Award to recognize and help raise the profile of those working in biotech in the pursuit of new ways to heal, fuel and feed the world.

In 2001, Napo established an innovative business model to ensure sustainable access to its novel drugs for all countries and populations, no matter their circumstances. Napo is achieving that through its partnerships and alliances with crofelemer, its late-stage gastro-intestinal product. Napo has established development and commercial license agreements for the indications of chronic diarrhea in people living with HIV/AIDS ("CRO-HIV"), adult acute infectious diarrhea ("CRO-ID") and pediatric diarrhea ("CRO-PED") with Glenmark Pharmaceuticals, Ltd. in over 140 emerging and developing countries outside North America, Japan, China and the EU ("ROW"); AsiaPharm Group for the same indications in China; and, Salix Pharmaceuticals, Inc. for the same indications in North America, Japan and most EU countries, in addition to irritable bowel syndrome, worldwide.

Napo has also established an alliance with Direct Relief International to provide a pediatric formulation of crofelemer, (once approved by the FDA and subject to local registration) for disaster and resource constrained areas. Napo is working with socially responsible investors and its collaboration partners to accelerate the development of crofelemer for pediatric populations. The impact of diarrhea in children is very severe. It is estimated that 4 billion episodes of acute diarrhea occur among children under five in developing countries, resulting in two to three million deaths per annum. Research has demonstrated lasting, long-term morbidity due to persistent diarrhea in young children, including effects on growth, fitness, and cognitive function. Chronic diarrhea is a persistent problem in children born with HIV infection, and dehydration is the cause of death for most of the young patients. Untreated chronic diarrhea can also interfere with the body's ability to absorb the drugs used to treat HIV infection, particularly anti-retroviral therapy.

Crofelemer, is in various stages of clinical development for four distinct product indications, including a late-stage Phase 3 program:

- CRO-HIV for HIV-related diarrhea, Phase 3 (under a Special Protocol Assessment)
- CRO-IBS for diarrhea-predominant 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.

Glenmark anticipates regulatory approvals in its territories starting in 2010 and expects a peak sales opportunity of $80 million in ROW markets alone in HIV-related diarrhea indication. Salix anticipates a filing with the US FDA in 2010 for CRO-HIV, and has stated it believes the CRO-HIV market to be a $300 million opportunity.

Lisa Conte, CEO of Napo, commented, "Napo is thrilled to be recognized with this nomination. Through dedication to 'innovation without boundaries,' we've been able to create and maintain our mission to bring crofelemer to the valuable markets of the west simultaneous with addressing the dramatic need in resource-constrained populations, especially those under 5 years of age. We thank our collaborators, shareholders, and stakeholders for their vision and commitment to demonstrate that by including 80% of the world's population previously excluded from novel drug access, we can strive to achieve not only substantial benefits in mortality and morbidity on a global scale, yet also enhance the financial return to those who invest in risk-based drug development. That's sustainability."

The 2009 Biotech Humanitarian award recipient will be recognized at the 2009 BIO International Convention in Atlanta, GA on May 20, 2009. www.iambiotech.org

About Napo Pharmaceuticals, Inc.

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. Crofelemer is a first-in-class anti-secretory agent. Napo holds the exclusive worldwide rights to novel small molecule potential second generation anti-secretory agents, which have been licensed by Napo from the University of California regents.

Napo is developing an early clinical stage/ready for Phase 2 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 the company has entered two screening relationship associated with this collection.

For more information please visit www.napopharma.com.