AspenBio Pharma, Inc. Streamlines Its Governance Structure

CASTLE ROCK, CO--(Marketwire - October 12, 2010) - AspenBio Pharma, Inc. (NASDAQ: APPY), today reported that the Company’s Board of Directors has restructured AspenBio Pharma’s governance to strategically focus the Company’s resources in the most cost-effective manner, while retaining the experience and industry knowledge of its Board members.

Effective as of October 7, 2010, Ambassador Gail Schoettler, who has served on the Board of AspenBio Pharma since August 2001 was appointed as non-executive Chair of the Board. Daryl J. Faulkner, who has served as the Company’s Executive Chairman since January 2009 and had previously served as its Chief Executive Officer and President from February 2009 to March 2010 will continue to serve as a Director. Gregory S. Pusey, Aspen’s Vice President of Investor Relations will continue to serve on the Board but the role of Vice Chairman, which he previously held, was eliminated. All other current Board members will continue to serve under the title of “Director” moving forward. Given that Mr. Faulkner is no longer serving as an officer of the Company, he and the Company agreed to terminate his employment agreement, effective with this change.

Steve Lundy, Chief Executive Officer and President of AspenBio Pharma stated, “The Company thanks Daryl Faulkner for his tireless leadership over the past 22 months. We look forward to continuing to work with him as a member of our Board of Directors. In addition, I’d like to welcome Gail Schoettler to her new role as Chair. Gail’s strong leadership background positions her very well for this role.”

The Company continues to advance its AppyScore product development activities focusing on the cassette test and instrument platform. As part of the Company’s ongoing strategic review of its product development programs in human and animal health, several cost reduction initiatives have been adopted which have reduced monthly expenses, including reductions in employee and professional advisor expenses.

About AspenBio Pharma, Inc.
AspenBio Pharma, Inc. (NASDAQ: APPY) is developing and commercializing innovative products that address unmet diagnostic and therapeutic needs. The company’s lead product candidate, AppyScore, is a novel blood-based diagnostic test that aids in the evaluation of patients suspected of having acute appendicitis, but are at a low risk and helps address the difficult challenge of properly diagnosing appendicitis in the hospital emergency department setting. 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 (“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 ability to successfully complete the clinical trial activities required for FDA submission, obtain FDA approval for, cost effectively manufacture 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.