Press Releases

MISSION VIEJO, CA -- (MARKET WIRE) -- 02/13/12 -- Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS) (PINKSHEETS: AOLS)

• $2.2 million in revenue
• Meeting to request exercise of additional contract options scheduled for February 14, 2012

Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS) (PINKSHEETS: AOLS), a biotechnology company leveraging significant government funding to develop a platform of novel compounds in oncology and biodefense, announced today financial results for the three months ended December 31, 2011.

The Company reported a net profit of approximately $2,977,000, or $0.05 per share, which includes a non-cash adjustment of approximately $3,688,000 related to decreases in the fair value of warrants that are included as a component of other income (expenses) in the statement of operations, for the three months ended December 31, 2011, compared to a net loss of $7,620,000, or $0.13 per share, which includes a non-cash charge of approximately $7,202,000 related to increases in the fair value of warrants that are included as a component of other income (expenses) in the statement of operations, for the three months ended December 31, 2010.

"We have completed the first year of our five year contract with BARDA, and our team has delivered key milestones such as developing and validating murine and NHP models for lung acute radiation syndrome, improving our manufacturing processes, enhancing our understanding of the mechanism of action of AEOL 10150 and initiating dose finding studies in mice," stated John L. McManus, President and Chief Executive Officer. "We look forward to BARDA's decision on additional contract options, and hope to initiate large murine and NHP efficacy studies, as well as a Phase 1 study in healthy human volunteers."

Revenue for the three months ended December 31, 2011 was approximately $2,215,000, which compares to zero revenue for the three months ended December 31, 2010. The revenue is from the collaboration with BARDA announced on February 11, 2011.

Research and development expenses increased about $1,880,000 to approximately $2,077,000 for the three months ended December 31, 2011, from approximately $190,000 for the three months ended December 31, 2010. The increase is primarily attributable to work related to the BARDA Contract.

General and administrative expenses increased about $306,000, or 55%, to approximately $856,000 for the three months ended December 31, 2011 from approximately $550,000 for the three months ended December 31, 2010. The increase is primarily attributable to work related to the BARDA Contract.

As of December 31, 2011, the Company had approximately $1,186,000 in cash and cash equivalents and 60,470,718 common shares outstanding.

Aeolus is filing today with the SEC its Quarterly Report on Form 10-Q for the quarter ended December 31, 2011. Aeolus urges its investors to read this quarterly filing as well as its amended Annual Report on Form 10-K/A, also filed with the SEC, for further details concerning the Company. The Quarterly Report on Form 10-Q and the amended Annual Report on Form 10-K/A are also available on the Company's website, at http://www.aeoluspharma.com.

About AEOL 10150

AEOL 10150 is a broad-spectrum catalytic antioxidant specifically designed to neutralize reactive oxygen and nitrogen species. The neutralization of these species reduces oxidative stress, inflammation, and subsequent tissue damage-signaling cascades resulting from radiation exposure. AEOL 10150 could have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation in the treatment of oncology.

AEOL 10150 has already performed well in preclinical and non-clinical studies, was well-tolerated in two human clinical trials, and has demonstrated statistically significant survival efficacy in an acute radiation-induced lung injury model. The Company believes it could have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation, whether from cancer therapy or a nuclear event.

About Aeolus Pharmaceuticals

Aeolus Pharmaceuticals is developing a new class of catalytic antioxidant compounds that protects healthy tissue from the damaging effects of radiation. Its first compound, AEOL 10150, is being developed for oncology indications, where it is used in combination with radiation therapy. It is also being developed, with funding by the US Government, as a medical countermeasure against chemical and radiological weapons, where its initial target indications are as a protective agent against the effects of acute radiation syndrome and delayed effects of acute radiation exposure. Aeolus' strategy is to leverage the substantial investment in toxicology, manufacturing, and preclinical and clinical studies made by US Government agencies in AEOL 10150, including the contract with BARDA valued, with options, at up to $118.4 million, to efficiently develop the compound for use in oncology.

Forward-Looking Statements

The statements in this press release that are not purely statements of historical fact are forward-looking statements. Such statements include, but are not limited to, those relating to Aeolus' product candidates, as well as its proprietary technologies and research programs, the Company's potential initiation of large efficacy studies in mice and NHPs, as well as a phase 1 study in healthy normal volunteers, and the BARDA Contract. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Aeolus' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Important factors that could cause results to differ include risks associated with uncertainties of progress and timing of clinical trials, scientific research and product development activities, difficulties or delays in development, testing, obtaining regulatory approval, the need to obtain funding for pre-clinical and clinical trials and operations, the scope and validity of intellectual property protection for Aeolus' product candidates, proprietary technologies and their uses, and competition from other biopharmaceutical companies, and whether BARDA exercises one or more additional options under the BARDA Contract. Certain of these factors and others are more fully described in Aeolus' filings with the Securities and Exchange Commission, including, but not limited to, Aeolus' amended Annual Report on Form 10-K/A for the year ended September 30, 2010. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

                        AEOLUS PHARMACEUTICALS, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                   (In thousands, except per share data)

                                                December 31,  September 30,
                                                    2011           2011
                                               -------------  -------------
                                                (Unaudited)
                    ASSETS
Current assets:
  Cash and cash equivalents                    $       1,186  $         518
  Accounts receivable                                  1,500          1,677
  Prepaids and other current assets                       56             63
                                               -------------  -------------
    Total current assets                               2,742          2,258

Investment in CPEC LLC                                    32             32
                                               -------------  -------------
    Total assets                               $       2,774  $       2,290
                                               =============  =============

     LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:

  Accounts payable and accrued expenses        $       3,142  $       2,144
                                               -------------  -------------
    Total current liabilities                          3,142          2,144

Warrant liability                                     19,717         23,405
                                               -------------  -------------
    Total liabilities                                 22,859         25,549

Commitments and contingencies (Notes E and H)

Stockholders' deficit:
  Preferred stock, $.01 par value per share,
   10,000,000 shares authorized:
  Series B nonredeemable convertible preferred
   stock, 1,600,000 and 600,000 shares
   authorized as of December 31, 2011 and
   September 30, 2011, respectively; 526,080
   and 526,080 shares issued and outstanding
   as of December 31, 2011 and September 30,
   2011, respectively                                      5              5
  Common stock, $.01 par value per share,
   200,000,000 shares authorized; 60,470,718
   and 60,470,718 shares issued and
   outstanding as of December 31, 2011 and
   September 30, 2011, respectively                      605            605
  Additional paid-in capital                         158,740        158,543
  Accumulated deficit                               (179,435)      (182,412)
                                               -------------  -------------
    Total stockholders' deficit                      (20,085)       (23,259)
                                               -------------  -------------
    Total liabilities and stockholders'
     deficit                                   $       2,774  $       2,290
                                               =============  =============


                        AEOLUS PHARMACEUTICALS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                (Unaudited)
                   (In thousands, except per share data)

                                                      Three Months Ended
                                                         December 31,
                                                   ------------------------
                                                       2011         2010
                                                   -----------  -----------
Revenue:
  Contract revenue                                 $     2,215  $        --

Costs and expenses:
  Research and development                               2,070          190
  General and administrative                               856          550
                                                   -----------  -----------
    Total costs and expenses                             2,926          740
                                                   -----------  -----------
Loss from operations                                      (711)        (740)
Non-cash financing charges and change in fair
 value of warrants (Notes D, E and F)                    3,688       (7,202)

Interest income (expense), net                              --          (15)
Other income (expense), net                                 --          337
                                                   -----------  -----------
Net income (loss)                                  $     2,977  $    (7,620)
                                                   ===========  ===========

Net income (loss) per weighted share attributable
 to common stockholders:
  Basic                                            $      0.05  $     (0.13)
                                                   -----------  -----------
  Diluted                                          $      0.04  $     (0.13)
                                                   ===========  ===========

Weighted average common shares outstanding:
  Basic                                                 60,471       57,026
                                                   -----------  -----------
  Diluted                                               80,006       57,026
                                                   ===========  ===========


                        AEOLUS PHARMACEUTICALS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (Unaudited)
                               (In thousands)

                                                      Three Months Ended
                                                         December 31,
                                                   ------------------------
                                                       2011         2010
                                                   -----------  -----------

Cash flows from operating activities:
  Net income (loss)                                $     2,977  $    (7,620)
  Adjustments to reconcile net income (loss) to
   net cash provided by (used in) operating
   activities:
    Stock-based compensation                               197          187
    Change in fair value of warrants                    (3,688)       6,645
    Noncash exercise of warrants                            --          169
    Noncash interest and warrant costs                      --          382
    Change in assets and liabilities:
      Accounts receivable                                  177           --
      Prepaid and other assets                               7           11
      Accounts payable and accrued expenses                998         (291)
                                                   -----------  -----------
Net cash provided by (used in) operating
 activities                                                668         (517)
                                                   -----------  -----------

Cash flows provided by financing activities:
  Proceeds from issuance of common stock and
   warrants                                                 --        1,000
  Costs related to the issuance of common stock
   and warrants                                             --          (13)
  Proceeds from exercise of warrants                        --           42
                                                   -----------  -----------
Net cash provided by financing activities                   --        1,029
                                                   -----------  -----------

Net increase in cash and cash equivalents                  668          512
Cash and cash equivalents at beginning of period           518        2,355
                                                   -----------  -----------
Cash and cash equivalents at end of period         $     1,186  $     2,867
                                                   ===========  ===========

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Contact:
Russell Skibsted
Sr. Vice President and Chief Financial Officer
Aeolus Pharmaceuticals, Inc.
1-(949) 481-9825

Source: Aeolus Pharmaceuticals

Disclosure under Rule 2.11in respect of recommended cash offerforGlobeOp Financial Services S.A. (“GlobeOp�)byGeo 3 & Co. S.C.A. (“Geo�)(a newly-established partnership indirectly owned byTPG Partners VI-AIV, L.P.)

Disclosure under Rule 2.11 of the City Code on Takeovers and Mergers (the “Code�)

LUXEMBOURG--(BUSINESS WIRE)-- Further to the announcement made by Geo on 1 February 2012 in connection with its recommended cash offer for GlobeOp, pursuant to Rule 2.7 of the Code (the “Offer Announcement�), on 10 February 2012 Geo received additional irrevocable undertakings to accept the Offer from members of GlobeOp’s operational management team as set out below, in respect of their beneficial holdings in GlobeOp amounting to, in aggregate, 15,722 Ordinary Shares, representing approximately 0.015 per cent. of the existing issued share capital of GlobeOp (the “Irrevocables�).1

Geo also entered into deeds of adherence to the Share Exchange Agreement on 10 February 2012 with the members of GlobeOp’s operational management team set out below, whereby they agreed to exchange their Ordinary Shares, as set out against their name below, for securities in Geo 1 S.à.r.l., an indirect holding company of Geo (the “Rollover�).2 Together with the Irrevocables, these arrangements relate to, in aggregate, 423,472 Ordinary Shares, representing approximately 0.40 per cent. of the existing issued share capital of GlobeOp.

Pursuant to the Irrevocables, the relevant members of the operational management team have also agreed to accept the Offer in respect of any Ordinary Shares which are issued to them pursuant to the Share Schemes or otherwise, and have agreed that, except with the prior consent of Geo, they will only exercise any rights to acquire Ordinary Shares, pursuant to Share Schemes or otherwise, upon the Offer becoming or being declared unconditional in all respects by Geo in accordance with the Code.

In aggregate, Geo has now received irrevocable undertakings to accept the Offer, letters of intent and agreements to sell pursuant to the Share Exchange Agreement in respect of a total of 38,982,705 Ordinary Shares, representing approximately 36.75 per cent of the existing issued share capital of GlobeOp. In addition, Geo owns 5.5 million shares of GlobeOp, equivalent to approximately 5.2% of the current issued share capital of GlobeOp.

* These managers have signed Irrevocables in respect of any Ordinary Shares they receive pursuant to the exercise of rights under the GlobeOp Share Option Schemes or otherwise. They have not signed deeds of adherence to the Share Exchange Agreement.

^ With reference to GlobeOp’s issued share capital as at the date hereof of 106,061,040 Ordinary Shares.

Defined terms used in this announcement have the meaning given to them in the Offer Announcement unless otherwise defined herein.

J.P. Morgan Limited, which conducts its UK investment banking activities as J.P. Morgan Cazenove and is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for TPG and Geo and no one else in connection with the recommended cash offer by Geo for the entire issued and to be issued share capital of GlobeOp and this announcement, and will not be responsible to anyone other than TPG and Geo for providing the protections afforded to its clients nor for providing advice in connection with the Offer or any matter referred to herein.

Publication on Website

A copy of this announcement will be made available (subject to certain restrictions relating to persons resident in any jurisdiction where making the announcement available would constitute a violation of the relevant laws and regulations of such jurisdiction or would result in a requirement to comply with any governmental or other consent or any registration, filing or other form which Geo regards as unduly onerous) on http://www.globeop.com/globeop/ab/fi by no later than 12 noon (London time) on 10 February 2012.

1 The Irrevocables cease to be binding if (i) the Offer document is not published within 28 days of 1 February 2012 (or such later date as the Takeover Panel may permit) and (ii) the Offer does not become wholly unconditional.

2 The Rollover is subject only to the Offer becoming or being declared wholly unconditional (or in certain circumstances can be completed immediately prior to the Offer becoming or being declared wholly unconditional).

Enquiries:J.P. Morgan Cazenove (Financial Adviser to TPG and Geo)Barry Weir, +44 (0)20 7742 4000James ThomlinsonorPelham Bell Pottinger (Media enquiries to TPG and Geo)Gavin Davis, +44 (0)20 7861 3159Tristan Peniston-Bird, +44 (0)20 7861 3928

Source: Geo 3 & Co. S.C.A.