Napo Pharmaceuticals

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Napo Confirms Satisfaction of Conditions of Conditional Private Placement of Common Shares

South San Francisco, California, 15 May, 2007- Napo Pharmaceuticals, Inc., (LSE: NAPL) which focuses on the development and commercialisation of proprietary pharmaceuticals for the global marketplace in collaboration with local partners, announces that, further to the conditional subscription for common shares announced on 8 January 2007, the Company will be issuing 170,482 common shares ("the Placing Shares") at 94.5p per share (the "Placing Price") to raise approximately £151,380 (approximately $300,000).

On 8 January 2007, Napo announced that it had entered into subscription agreements with investors in connection with a two tranche placing of up to 3,513,741 new common shares at the Placing Price. The first tranche, of 3,026,643 common shares at the Placing Price, was issued on 8 January 2007.

The second tranche of 170,482 common shares are being issued pursuant to an agreement by investors to subscribe for up to 487,098 common shares at the Placing Price upon certain arrangements being entered into between the Company and these investors.

Upon Admission of this second tranche of common shares the Company's issued share capital will increase to 47,142,278 common shares, including 8,118 common shares at the Placing Price that will be issued to the Company's US placement adviser in connection with the second tranche of Placing Shares.

The Placing Shares and the shares to be issued to advisers represent approximately 0.36 per cent of the Company's current total issued common shares following Admission.

Application will be made for 170,482 shares (comprising 162,364 Placing Shares and 8,118 shares to be issued to the Company's US placement adviser in connection with the placing) to be admitted to the Official List and to trading on the London Stock Exchange's market for listed securities and it is expected that Admission will become effective and dealings will commence at 08.00am on 17 May 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.

Napo Pharmaceuticals Inc., focuses on the development and commercialisation 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 paediatric 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. Experimental studies have shown that crofelemer inhibits chloride secretion across the CFTR transporter in various animal models of diarrhea, including cholera toxin treatment. Napo also plans to develop a 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 into screening relationships 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.