Northfield Laboratories Inc. Signs Purchase Agreement for Manufacturing Facility

Northfield Laboratories Inc. (Nasdaq: NFLD) announced today thatit signed an agreement with First Industrial, L.P., to purchase thebuilding Northfield currently occupies as lessee in Mt. Prospect, ILfor $6.7 million. The transaction is scheduled to close in late June,subject to customary terms and conditions.

This 106,000 square foot property will be used for Northfield'sfirst planned commercial facility for the manufacture of PolyHeme(R),the Company's human hemoglobin-based oxygen carrier, as well as tohouse laboratory, quality, and administrative personnel. Engineeringand size optimization activities for the space are already underway,as previously announced. It is expected that the facility will becapable of producing approximately 100,000 units or more ofPolyHeme(R) annually. The Company has indicated that the major capitalexpenditure associated with this expansion will not occur untiltopline data from the current trauma trial has been analyzed andreported, sometime in the Fall.

"Purchasing the building where we will manufacture PolyHeme(R) isa major step toward realizing our commercialization plans," saidSteven A. Gould, M.D., Chairman and Chief Executive Officer. "Owningthe space allows us the autonomy and flexibility we need to meet theanticipated market demand for a product that has the potential tosustain lives that otherwise might be lost."

Clinical Trial Update

The Company also announced that enrollment is nearing completionin its pivotal Phase III trauma study. Approximately 700 patients ofthe planned total of 720 have been enrolled at Level I trauma centersacross the United States.

"Reaching the 700 patient mark is a tribute to the dedication andcommitment of the investigators, their institutions and the EMSproviders participating in this complex and groundbreaking study,"said Gould. "We look forward to completion and to reporting on thetrial results," he added.

Analyst and Institutional Investor Meeting

Northfield will be hosting an analyst and institutional investorevent in New York on August 8, 2006. This year's event is entitledDelivering Trauma Care Today and Tomorrow. Several distinguishedexperts will speak on issues including access to trauma care and EMSsystems, recently the subject of a series of reports prepared by theNational Academy of Sciences' Institute of Medicine. As with lastyear's event, this forum will be available to all shareholders vialive webcast. Details will be available approximately one week priorto the date.

About Northfield Laboratories

Northfield Laboratories Inc. is a leader in developing anoxygen-carrying resuscitative fluid for the treatment of urgent, largevolume blood loss in trauma and resultant surgical settings.PolyHeme(R) is a solution of chemically modified human hemoglobin thatrequires no cross matching and is therefore compatible with all bloodtypes. It has a shelf life in excess of 12 months. Enrollment iscurrently underway in a pivotal Phase III trial of PolyHeme(R)beginning in the pre-hospital setting. For further information, visitwww.northfieldlabs.com.

This press release may contain forward-looking statementsconcerning, among other things, Northfield's future business plans andstrategies and clinical and regulatory developments affecting ourPolyHeme(R) red blood cell substitute product. These forward-lookingstatements are identified by the use of such terms as "intends,""expects," "plans," "estimates," "anticipates," "should," "believes"and similar terms. These forward-looking statements involve inherentrisks and uncertainties. Our actual results may therefore differmaterially from those predicted by the forward-looking statementsbecause of various factors and possible events, including our abilityto obtain FDA approval to market PolyHeme commercially, theavailability of capital to finance our clinical trials and ongoingbusiness operations, our ability to obtain adequate supplies of rawmaterials and to manufacture PolyHeme in commercial quantities, ourability to market PolyHeme successfully, the possibility thatcompetitors will develop products that will render PolyHeme obsoleteor non-competitive, our ability to protect our intellectual propertyrights, the outcome of certain governmental inquires and purportedclass action lawsuits as described in our most recently filedquarterly report on Form 10-Q, the possibility that we may be subjectto product liability claims and other legal actions, our dependency ona limited number of key personnel, the uncertainty of third partyreimbursement for our product and other risks and uncertaintiesdescribed from time to time in our periodic reports filed with theSecurities and Exchange Commission, including our most recently filedquarterly report on Form 10-Q and annual report on Form 10-K. Theseforward-looking statements speak only as of the date of this pressrelease. We do not undertake any obligation to update or publiclyrelease any revisions to forward-looking statements to reflect events,circumstances or changes in expectations after the time such statementis made. All subsequent written and oral forward-looking statementsattributable to Northfield or any person acting on our behalf arequalified by this cautionary statement.