AspenBio Pharma Announces $18 Million Private Placement of Common Stock

    CASTLE ROCK, Colo., Dec. 20 /PRNewswire-FirstCall/ -- AspenBio Pharma,
 Inc. (Nasdaq:   APPY) an emerging bio-pharmaceutical company dedicated to the
 development of novel drugs and diagnostics for animals and humans, today
 announced that it has entered into securities purchase agreements in
 connection with a private placement with a group of existing and new
 investors. Under the terms of the agreement, AspenBio will receive
 approximately $18 million in gross proceeds from the sale of approximately
 2.5 million shares of its common stock.
 
     Subject to the satisfaction of customary closing conditions, the
 transaction is expected to close on or about December 24, 2007. Net
 proceeds from the transaction will be used to fund research and
 development, product development, FDA approval related activities, working
 capital and general corporate purposes.
 
     The shares of AspenBio's common stock issued in connection with the
 private placement have not been registered under the Securities Act of
 1933, as amended (the "Securities Act"). Accordingly, these securities may
 not be offered or sold in the United States except pursuant to an effective
 registration statement or an applicable exemption from the registration
 requirements of the Securities Act. AspenBio has agreed to file within 30
 days after the closing one or more registration statements covering the
 resale of the common stock. This press release shall not constitute an
 offer to sell or the solicitation of an offer to buy AspenBio's common
 stock.
 
     About AspenBio Pharma, Inc.
 
     AspenBio Pharma is an emerging bio-pharmaceutical company dedicated to
 the discovery; development, manufacture, and marketing of novel proprietary
 products, including those that enhance the reproductive efficiency of
 animals and that have large worldwide market potential. The company was
 originally formed to produce purified proteins for diagnostic applications
 and has become a leading supplier of human hormones to many of the nation's
 largest medical diagnostic companies and research institutions. The company
 has successfully leveraged this foundational science and technology
 expertise to rapidly develop an enviable late-stage pipeline of several
 novel reproduction hormone analogs for wide-ranging therapeutic use
 initially in bovine and equine species. AspenBio Pharma continues to
 advance the development and testing of its two first-generation blood-based
 human diagnostic tests designed to rapidly help diagnose or rule out
 appendicitis in patients complaining of abdominal pain. For more
 information, please visit: http://www.aspenbiopharma.com.
 
     Forward Looking Statements
 
     This news release includes "forward looking statements" of AspenBio
 Pharma, Inc. ("APPY") as defined by the Securities and Exchange Commission
 (the "SEC"). All statements, other than statements of historical fact,
 included in the press release that address activities, events or
 developments that APPY believes or anticipates will or may occur in the
 future are forward-looking statements. These statements are based on
 certain assumptions made based on experience, expected future developments
 and other factors APPY believes are appropriate in the circumstances. Such
 statements are subject to a number of assumptions, risks and uncertainties,
 many of which are beyond the control of APPY. Investors are cautioned that
 any such statements are not guarantees of future performance. Actual
 results or developments may differ materially from those projected in the
 forward-looking statements as a result of many factors, including
 statements regarding the private placement, the expected closing of the
 private placement and the ability to successfully complete the development
 of, obtain FDA approval for and generate revenues from the appendicitis
 test and other new products, execute agreements required to successfully
 advance the company's objectives, retain the scientific management team to
 advance the products, overcome adverse changes in market conditions and the
 regulatory environment, fluctuations in sales volumes, obtain and enforce
 intellectual property rights, and realization of intangible assets.
 Furthermore, APPY does not intend (and is not obligated) to update publicly
 any forward-looking statements. The contents of this news release should be
 considered in conjunction with the warnings and cautionary statements
 contained in APPY's recent filings with the SEC.
 
 

      For more information contact:
      AspenBio Pharma, Inc.
      Gregory Pusey, Chairman
      Tel 303-722-4008
 
      Investor Relations:
      Liolios Group, Inc.
      Scott Liolios or Ron Both
      Tel 949-574-3860
 
 

SOURCE AspenBio Pharma, Inc.