Noble Financial Initiates Equity Research Analyst Coverage on Aeolus

MISSION VIEJO, CA--(Marketwire - May 26, 2011) - Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS) today announced that Noble Financial Group initiated equity research coverage on the Company with a "Buy" recommendation and a 12-month price target of $3.30 per share. The new report, issued this week, was authored by Nathan Cali, Senior Research Analyst, Biotechnology and Specialty Pharmaceuticals.

To request a copy of the report, please contact Nathan Cali. His contact information can be found at http://www.aeoluspharma.com/Investors/Analysts.

Neither Aeolus Pharmaceuticals, Inc., nor any of its affiliates, endorse, confirm or adopt the contents of the Noble Financial equity research report nor accept any responsibility for its accuracy, which is the sole responsibility of its author. Aeolus undertakes no obligation to revise or update this Report to reflect events or circumstances after its issuance or otherwise. The reader should review all disclaimers contained in this Report. Aeolus is subject to significant risks, and a discussion of such risks can be found by reviewing Aeolus' SEC filings including Annual and Quarterly Reports as filed on Form 10-K and Form 10-Q respectively.

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 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. 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' 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.