Aytu BioPharma Announces Launch of Public Offering ENGLEWOOD, CO

Aytu BioPharma Announces Launch of Public Offering

CO, August 8, 2022 - Aytu BioPharma, Inc. (the "Company" or "Aytu") (Nasdaq: AYTU), a pharmaceutical

company focused on developing and commercializing novel therapeutics, today announced the launch of an underwritten public offering of

shares of its common stock or, in lieu of common stock to certain investors that so choose, pre-funded warrants to purchase shares of

its common stock, and accompanying warrants to purchase its common stock (the "Offering"). All of the securities in the Offering

will be sold by Aytu. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the

Offering may be completed or as to the actual size or terms of the Offering.

intends to use the net proceeds from the Offering for advancing the development of its pipeline assets, including for advancing the PREVEnt

Trial evaluating AR101 for the treatment of vascular Ehlers-Danlos Syndrome (VEDS), for growth of the company's commercial business,

and for working capital and general corporate purposes.

Cantor and Canaccord

Genuity are acting as the joint bookrunners for the Offering.

will be made only by means of a prospectus supplement and accompanying prospectus forming part of a shelf registration statement on Form S-3

(File No. 333-259862) that was declared effective by the Securities and Exchange Commission (the "SEC") on October 7,

2021. Copies of the prospectus supplement and the accompanying prospectus relating to and describing this Offering may be obtained, when

available, by contacting Cantor Fitzgerald & Co., Attention: Capital Markets, 499 Park Avenue,

4th Floor, New York, NY 10022, or by email at prospectus@cantor.com or by contacting Canaccord Genuity

LLC, Attention: Syndicate Department, 99 High Street, Suite 1200, Boston, MA 02110 or by email at prospectus@cgf.com. These

documents may also be obtained for free on the SEC's website located at http://www.sec.gov.

does not constitute an offer to sell or the solicitation of an offer to buy any securities in the Offering. There shall not be any sale

of these securities in any state or jurisdiction in which such offering, sale or solicitation would be unlawful prior to registration

or qualification under the securities laws of any such state or jurisdiction.

About Aytu BioPharma, Inc.

is a pharmaceutical company with a portfolio of commercial prescription therapeutics and consumer health products, and a growing therapeutics

pipeline focused on treating rare, pediatric-onset disorders. The company's prescription products include Adzenys XR-ODT (amphetamine)

extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) and Cotempla XR-ODT (methylphenidate)

extended-release orally disintegrating tablets (see Full Prescribing Information, including Boxed WARNING) for the treatment of attention

deficit hyperactivity disorder (ADHD), as well as Karbinal ER (carbinoxamine maleate), an extended-release carbinoxamine (antihistamine)

suspension indicated to treat numerous allergic conditions, and Poly-Vi-Flor and Tri-Vi-Flor , two complementary fluoride-based

prescription vitamin product lines containing combinations of fluoride and vitamins in various formulations for infants and children

with fluoride deficiency. Aytu is also building a therapeutic pipeline, which includes AR101 (enzastaurin), a PKC inhibitor in

development for the treatment of vascular Ehlers-Danlos Syndrome (VEDS). VEDS is a rare genetic disease typically diagnosed in childhood

resulting in high morbidity and a significantly shortened lifespan, and for which there are no currently approved treatments. AR101 has

received Orphan Drug designation from the U.S. Food and Drug Administration and the European Medicines Agency. Aytu is also researching

and advancing the development of the Healight ultraviolet light A (UVA) endotracheal catheter, a patented, investigational medical device

with potential application in the treatment of severe, difficult-to-treat respiratory infections.

Safe Harbor Statement Under the

Private Securities Litigation Reform Act of 1995

contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation

Reform Act of 1995. In some cases, you can identify these statements by forward-looking words such as "anticipates," "believes,"

"continue," "estimates," "expects," "intends," "may," "might," "plans,"

"predicts," "projects," "should," "targets," "will," or the negative of these terms

and other similar terminology. Forward-looking statements in this press release include, but are not limited to, statements regarding

the anticipated closing of the Offering and the expected uses of the proceeds from the Offering. Completion of the Offering is subject

to numerous factors, many of which are beyond Aytu's control, including, without limitation, market conditions, failure of customary

closing conditions and the risk factors and other matters set forth in the prospectus supplement and accompanying prospectus included

in the registration statement and the documents incorporated by reference therein. You are cautioned not to place undue reliance on any

forward-looking statements made by Aytu's management, which are based only on information currently available to it when, and speak only

as of the date, such statement is made. Aytu does not assume any obligation to publicly provide revisions or updates to any forward-looking

statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise

Chief Financial Officer