AspenBio Pharma Closes $18.2 Million Private Placement of Common Stock

    CASTLE ROCK, Colo., Dec. 24 /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, has
 closed a previously announced equity financing with a group of existing and
 new investors. $18.2 million in gross proceeds were generated from the sale
 of approximately 2.5 million shares of the company's common stock.
 
     Net proceeds to AspenBio totaled approximately $17.1 million and will
 be used to fund research and development, product development, FDA approval
 related activities, working capital, and general corporate purposes.
 Oppenheimer & Co. Inc., acted as placement agent for the transaction.
 
     Richard Donnelly, CEO and president, commented, "We are fortunate to
 finalize this offering during a very challenging period in the financial
 markets. This funding will support AspenBio's continued product development
 and near term FDA approval goals, like approval of our breakthrough blood
 screen test for appendicitis. As we recently announced, as a result of our
 official pre-IDE response from FDA, we are now following the preferred FDA
 510k clearance pathway. The funds will also support a number of other
 exciting initiatives in 2008 designed to enhance shareholder value."
 
     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: 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, 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.