POWER OF ATTORNEY

     Know all by these presents, that the undersigned hereby authorizes Peter M.
Strumph, Daron Evans, and David M. Tanen of Nile Therapeutics, Inc. ("Nile"), to
execute for and on behalf of the undersigned, in the undersigned's capacity as a
Section  16  reporting  person  of Nile,  Forms  3, 4 and 5, and any  amendments
thereto,  and cause such form(s) to be filed with the United  States  Securities
and Exchange  Commission  and The NASDAQ Stock Market.  The  undersigned  hereby
grants to each such  attorney-in-fact full power and authority to do and perform
any and every act and thing  whatsoever  requisite,  necessary,  or proper to be
done in the exercise of any of the rights and powers herein granted, as fully to
all  intents  and  purposes  as the  undersigned  might or  could do  personally
present,  with full power of  substitution or revocation,  hereby  ratifying and
confirming  all that  each  such  attorney-in-fact,  or such  attorney's-in-fact
substitute or  substitutes,  shall  lawfully do or cause to be done by virtue of
this power of attorney and the rights and powers herein granted. The undersigned
acknowledges that the foregoing  attorneys-in-fact,  in serving in such capacity
at the request of the undersigned,  are not assuming,  nor is Nile assuming, any
of  the  undersigned's  responsibilities  to  comply  with  Section  16  of  the
Securities Exchange Act of 1934, as amended or the rules promulgated thereunder.

     This Power of  Attorney  shall  remain in full  force and effect  until the
undersigned  is no longer  required to file Forms 3, 4 and 5 with respect to the
undersigned's  holdings  of, and  transactions  in,  securities  issued by Nile,
unless earlier revoked by the  undersigned in a signed writing  delivered to the
foregoing attorneys-in-fact.

     IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be
executed as of this 29th day of May, 2008.

/s/ Gregory W. Schafer
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Gregory W. Schafer