Northfield Laboratories Inc. (Nasdaq: NFLD) announced today that it has implemented a number of measures to reduce its cash burn in order to preserve cash for ongoing operations. The Company is also continuing its efforts to seek additional financing.

The Company has eliminated 13 positions at its manufacturing facility in Mount. Prospect, Illinois, and has reduced hours for remaining staff. In addition, the Company is closing the corporate offices and relocating staff to the owned Mount Prospect facility to further reduce operating costs. Following the recent completion of FDA’s Pre-License Inspection of the manufacturing facility, the Company believes these actions can be taken and still maintain the capability to address manufacturing, regulatory and licensing issues. In addition, Northfield has today advised the City of Evanston, Illinois, the Village of Mount Prospect, Illinois and the Illinois Department of Commerce & Economic Opportunity that unless additional funding for operations is obtained, the Company plans to effectuate a “plant closing” under the Illinois Worker Adjustment and Retraining Notification Act (“Illinois WARN”) and applicable regulations, which may result in the termination of employees at its main office and plant facilities in 60 days, or approximately May 5, 2009.

At the end of the second fiscal quarter on November 30, 2008, Northfield had $10.1 million in cash and marketable securities. Based on the implementation of the measures described, Northfield believes it will have sufficient cash to continue operations until April 30, 2009.

Northfield has a target FDA review date of April 30, 2009 for its Biologics License Application for its human hemoglobin-based oxygen carrier, PolyHeme^®.

About Northfield Laboratories

Northfield Laboratories is a leader in developing a hemoglobin-based oxygen-carrying red blood cell substitute. The initial indication we are seeking for our investigational product PolyHeme is the treatment of life-threatening red blood cell loss when an oxygen-carrying fluid is required and red blood cells are not available. PolyHeme is a solution of chemically modified human hemoglobin that requires no cross-matching and is therefore compatible with all blood types. It has an extended shelf life in excess of 12 months.