NPS Pharmaceuticals Announces $50 Million Convertible Note Sale



    
    Proceeds to Be Used to Retire 3% Convertible Debt Notes Due June 2008
    

    PARSIPPANY, N.J., Aug. 7 /CNW/ -- NPS Pharmaceuticals, Inc. (Nasdaq:  
NPSP) announced today that it has issued $50 million of convertible notes due
2014 through a private placement offering to funds managed by Visium Asset
Management, LLC ("Visium").  These notes will be convertible into NPS common
stock at a conversion price of $5.44 per share (reflecting a premium of 30%,
relative to the five-day volume-weighted average price for NPS common stock
between July 31 and August 6, 2007), and will bear interest at a rate of 5.75%
per annum.  NPS plans to use proceeds from the sale to retire a portion of its
outstanding 3% convertible notes due June 2008.
    NPS chief financial officer Gerard Michel stated: "NPS will use these
funds and the $50 million in proceeds generated from our recently announced
transaction with Drug Royalty to retire approximately half of the 3%
convertible debt due June 2008."
    The notes and common stock issuable upon conversion of the notes have not
been registered under the Securities Act of 1933, as amended, or applicable
state securities laws, and unless so registered, may not be offered or sold in
the United States, except pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended, and
applicable state securities laws. Pursuant to the notes, Visium is prohibited
from converting any portion of the notes that would allow them to beneficially
own in excess of 9.99% of the outstanding number of NPS common stock.
    
    About NPS Pharmaceuticals
    
    NPS discovers and develops small molecules and recombinant proteins as
drugs, primarily for the treatment of metabolic, bone and mineral, and central
nervous system disorders.  The company has drug candidates in various stages
of clinical development.  Additional information is available on the company's
website, http://www.npsp.com.
    
     Cautionary Statement For The Purpose Of The "Safe Harbor" Provisions
           Of The Private Securities Litigation Reform Act of 1995
    
    Note: Statements made in this press release, which are not historical in
nature, constitute forward-looking statements for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995. Such
statements include those regarding our 5.75% convertible notes.  These
statements are based on management's current expectations and beliefs and are
subject to a number of factors and uncertainties that could cause actual
results to differ materially from those described in the forward-looking
statements. Such risks and uncertainties include: we may not have sufficient
revenue from operations to repay our convertible notes in accordance with our
expectations or at all; we may never develop additional products that generate
revenues; and the FDA may delay approval or may not approve any of our product
candidates.  All information in this press release is as of August 7, 2007,
and we undertake no duty to update this information. A more complete
description of these risks can be found in our filings with the Securities and
Exchange Commission, including our Current Report on Form 10-Q for the
quarter-ended June 30, 2007 and our Annual Report on Form 10-K for the year
ended December 31, 2006.




For further information:

For further information: Gail Brophy of NPS Pharmaceuticals, Inc., 
+1-973-658-8504 Web Site: http://www.npsp.com

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NPS PHARMACEUTICALS, INC.

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