North American Scientific Announces Closing of $15.5 Million Private Placement of Common Stock

  
    
  
  
    
      North American Scientific, Inc. (Nasdaq:NASI) announced today the 
      closing on January 18, 2008 of a private placement of shares of its 
      common stock and the concurrent issuance of warrants for the purchase of 
      common stock. The Company has received gross proceeds of $15.5 million 
      from the financing which will be used for continued development of 
      ClearPath™, the Company’s 
      breast brachytherapy device, as well as working capital.
    
    
      Three Arch Partners led the private placement and has invested $10 
      million. CHL Medical Partners invested $3 million and SF Capital 
      Partners invested $2.5 million. Oppenheimer & Co. acted as the sole 
      placement agent for the transaction. The private placement was approved 
      by a committee of the Company’s Board of 
      Directors consisting only of independent directors, and by the holders 
      of a majority of the Company’s outstanding 
      common stock.
    
    
      John B. Rush, President and Chief Executive Officer of North American 
      Scientific, stated, “We are pleased to 
      complete this financing, and we especially appreciate the continued 
      support of Three Arch Partners and SF Capital Partners. We look forward 
      to the success of our ClearPath product and continued sales growth in 
      2008.”
    
    
      The private placement increased the Company’s 
      stockholders’ equity from $753,000, as 
      reported in the Company’s Quarterly Report on 
      Form 10-Q for the quarter ended July 31, 2007, which included the Company’s 
      most recently filed balance sheet, to proforma stockholders’ 
      equity of $14,868,000 assuming estimated closing costs of $1,385,000, 
      and excluding financial results subsequent to July 31, 2007. The 
      proforma stockholders’ equity exceeds the 
      $2.5 million minimum stockholders’ equity 
      requirement for listing on the Nasdaq Capital Market.
    
    
      The investors have been issued 63,008,140 shares of the Company’s 
      common stock at $0.246 per share as well as warrants to purchase 
      3,150,407 shares of common stock at an exercise price of $0.246 per 
      share. The warrants are exercisable beginning 180 days after the date of 
      closing until 7 years after the date of closing.
    
    
      The securities sold in this private placement have not been registered 
      under the Securities Act of 1933, as amended, and may not be offered or 
      sold in the United States in the absence of an effective registration 
      statement or exemption from registration requirements. North American 
      Scientific agreed to file a registration statement after the closing of 
      the transaction for purposes of registering the resale of the shares of 
      common stock issued in the private placement and the shares of common 
      stock issuable upon exercise of the warrants. In connection with this 
      transaction, the investors and the directors and executive officers of 
      the Company have executed lock-up agreements restricting their ability 
      to sell shares of the Company’s common stock 
      for a period of 180 days following the closing.
    
    
      This press release does not constitute an offer to sell or the 
      solicitation of an offer to buy any of the securities nor shall there be 
      any sale of these securities in any state in which such offer, 
      solicitation or sale would be unlawful prior to registration or 
      qualification of the securities under the securities laws of any such 
      state.
    
    
      About North American Scientific
    
    
      North American Scientific is a leader in radiation therapy in the fight 
      against cancer. Its innovative products provide physicians with tools 
      for the treatment of various types of cancers. They include Prospera® 
      brachytherapy seeds and SurTRAK™ needles and 
      strands used primarily in the treatment of prostate cancer. In addition, 
      the Company has been gaining clinical experience with its first 
      generation ClearPath™ multi-channel catheter 
      breast brachytherapy devices in 2007, and intends to launch the second 
      generation devices in 2008. They are the only such devices approved for 
      both high dose and continuous release, or low dose, radiation 
      treatments. The devices are designed to provide flexible, precise dose 
      conformance and an innovative delivery system that is intended to offer 
      the more advanced form of brachytherapy for the treatment of breast 
      cancer. Please visit www.nasmedical.com 
      for more information.
    
    
      Statements included in this release that are not historical facts may 
      be considered forward-looking statements that are subject to a variety 
      of risks and uncertainties. There are a number of important factors that 
      could cause actual results to differ materially from those expressed in 
      any forward-looking statements made by the Company including, but not 
      limited to, the impact of competitive products and pricing, 
      technological changes, changes in relationships with strategic partners 
      and dependence upon strategic partners for the performance of critical 
      activities under collaborative agreements, the ability of the Company to 
      successfully directly market and sell its products, uncertainties 
      relating to patent protection and regulatory approval, the stable supply 
      of appropriate isotopes, research and development estimates, market 
      opportunities, risks associated with strategic opportunities or 
      acquisitions the Company may pursue and the risk factors included in the 
      Company’s filings with the Securities and 
      Exchange Commission. Any forward-looking statements contained in this 
      news release speak only as of the date of this release, and the Company 
      undertakes no obligation to revise or update any forward-looking 
      statements, whether as a result of new information, future results or 
      otherwise.