LAGUNA NIGUEL, Calif., Sept. 1 /PRNewswire-FirstCall/ -- Aeolus Pharmaceuticals, Inc. (OTC Bulletin Board: AOLS.OB), the developer of a new class of catalytic antioxidant compounds for diseases and disorders of the central nervous system, respiratory system, autoimmune system, and oncology, today announced that the Company has completed the closure of its prior headquarters in Research Triangle Park, North Carolina, and has transferred all operations to Southern California. The Company is in the process of securing additional office space in San Diego California, anticipated to be completed within the fourth calendar quarter of this year, and is, and will continue, utilizing the offices of McManus & Co. for all 'back-office' operational functions.

The consolidation of operations and relocation to Southern California was driven with an eye towards cost savings. 'Our discovery and research-based development has been completed over a 10-year period, resulting in the synthesis of 200 catalytic antioxidant compounds, all having the same chemical core structure, and all being covered by composition of matter patent claims, with AEOL 10150 being the first of these compounds to enter human clinical studies. We therefore do not require expensive laboratory space, nor a large employee base, or the allied overhead costs associated therewith. Indeed, our commitment to our shareholders is to primarily focus our finances on the area that leads to a return on investment - product development. No investor ever made money based on a marble lobby, cavernous executive offices, or mini- empires within a company, but instead on a diligent and dedicated focus to product development,' noted Richard P. Burgoon, Jr., chief executive officer of Aeolus.

'California is the birthplace of biotechnology, and San Diego is one of the largest biotechnology hubs in the Nation,' further noted Mr. Burgoon. 'With the exception of Dr. Brian Day, our Chief Science Officer who is an Associate Professor at the National Jewish Medical and Research Center, Denver Colorado, our management team is located in Southern California, as well as our regulatory consultants, Merchant Taylor International Inc., and our legal counsel, the law firm of Paul Hastings Janofsky & Walker LLP. In addition, having access to San Diego-based BIOCOM, one of the most proactive and focused trade associations in our industry, provides Aeolus with additional benefits for us to utilize, which is extremely important for a publicly-traded, semi- virtual organization such as Aeolus. We hope to positively contribute to the successful tradition of our industry in San Diego as we continue our focus on the development of our proprietary catalytic antioxidant compounds.'

About Aeolus Pharmaceuticals

Aeolus is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. AEOL 10150 is a small molecule catalytic antioxidant that has shown the ability to scavenge a broad range of reactive oxygen species. As a catalytic antioxidant, AEOL 10150 mimics and thereby amplifies the body's natural enzymatic systems for eliminating these damaging compounds. Because oxygen-derived free radicals are believed to have an important role in the pathogenesis of many diseases, Aeolus' catalytic antioxidants are believed to have a broad range of potential therapeutic uses. The Aeolus Pipeline Initiative, begun in the third calendar quarter of this year, is an internal development initiative focused on advancing, in addition to AEOL 10150, several of the most promising catalytic antioxidant compounds from Aeolus' proprietary library of 200 compounds. The initial therapeutic focus areas for the Aeolus Pipeline Initiative are: Parkinson's disease; Autoimmune disorders (arthritis and ulcerative colitis); Chronic Obstructive Lung Disease; Biodefense/Radioprotection; Tumor Suppression/Bone Marrow Transplantation; and Stroke. These therapeutic focus areas were selected based upon preliminary data developed using Aeolus catalytic antioxidant compounds.

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. 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. 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' Quarterly Report on Form 10-Q for the quarter ended June 30, 2005 . Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

SOURCE Aeolus Pharmaceuticals, Inc.