North American Scientific Announces Extension of Loan Agreements to February 1, 2008

  
    
  
  
    
      North American Scientific, Inc. (Nasdaq:NASI) today announced that on 
      December 18, 2007, North American Scientific, Inc., a Delaware 
      corporation, and its wholly-owned subsidiary, North American Scientific, 
      Inc., a California corporation (collectively, the “Company”), 
      entered into an Eighth Amendment and Forbearance to the Loan and 
      Security Agreement with Silicon Valley Bank (the “Bank”). 
      The amendment includes: (i) an extension of the maturity date of the 
      loan agreement to the earlier of February 1, 2008 or the date the 
      Company completes its private placement, which is described in the 
      Company’s Current Report on Form 8-K, filed 
      with the Securities and Exchange Commission on December 13, 2007, (ii) a 
      forbearance by the Bank from exercising its rights and remedies against 
      the Company, until such time as the Bank determines in its discretion to 
      cease such forbearance, due to the defaults under the Loan Agreement 
      resulting from the Company failing to comply with the tangible net worth 
      covenant in the Loan Agreement as of July 31, 2007, August 31, 2007, 
      September 30, 2007 and October 31, 2007 and (iii) a consent from the 
      Bank to allow the Company to repay its outstanding loan from Mr. John A. 
      Friede in the amount of $250,000.
    
    
      In connection with the amendment to the loan agreement with the Bank, 
      the Company granted a warrant to the Bank to purchase that number of 
      shares of the Company’s Common Stock as shall 
      be equal to $50,000 divided by the warrant price, which is equal to the 
      lower of (i) the closing price of the Company’s 
      common stock on the date the Company’s Board 
      of Directors approves the issuance of this warrant or (ii) the closing 
      price of the Company’s common stock on date 
      the warrant is issued, subject to adjustment as provided in 
      such warrant. The warrant will expire in five years unless previously 
      exercised.
    
    
      On December 20, 2007, the Company executed a Third Amendment to the Loan 
      Agreement with Agility Capital, LLC (“Agility”). 
      The amendment includes (i) an extension of the maturity date of the loan 
      agreement to February 1, 2008, (ii) a loan modification and extension 
      fee of $20,000, paid by the Company upon the execution of the amendment, 
      and (iii) a consent from Agility to allow the Company to repay its 
      outstanding loan from Mr. John A. Friede in the amount of $250,000.
    
    
      In connection with the amendment to the loan agreement with Agility, the 
      Company granted a warrant to Agility to purchase that number of shares 
      of the Company’s Common Stock as shall be 
      equal to $200,000 divided by the warrant price, which is equal to the 
      lowest of (i) the closing price of Company’s 
      Common Stock the day before the issue date of the warrant, as published 
      in The Wall Street Journal on the issue date, or (ii) the average 
      closing price of the Company’s Common Stock 
      for the 30 days before the issue date, or (iii) the price at which 
      Company next issues its Common Stock, subject to adjustment as provided 
      in the warrant. The warrant will expire in seven years unless previously 
      exercised.
    
    
      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.