AVI NeuGene Antisense Drug Increases Effectiveness Of Chemotherapy in Treating Lung Cancer

PORTLAND, Ore. - Jan. 31, 2003 - AVI BioPharma, Inc. (Nasdaq: AVII, AVIIW, AVIIZ) today announced results from a preclinical study in which AVI's NeuGene® antisense drug (AVI-4126) significantly reduced lung cancer growth in a mouse tumor model when given after chemotherapy. The study has been published in the January issue of Anti-Cancer Drugs, 2003, 14(1): 39-47.

Chemotherapy resistance remains a significant obstacle to designing effective lung cancer therapy. Researchers have found that lung cancer frequently correlates with an overexpression of the c-myc oncogene, a gene that helps regulate cell proliferation and differentiation. As a result, AVI scientists have examined the inhibition of the c-myc gene as a way to slow tumor growth.

In the peer-reviewed study, AVI administered AVI-4126 in combination with either cisplatin or taxol, two common chemotherapy drugs. AVI found that when the antisense drug was administered directly following chemotherapy, a dramatic decrease in the tumor growth rate was observed. The observed effect was specific to AVI-4126, which targeted the c-myc gene. When other NeuGene antisense drugs targeting different genes (p21 and Rad51) were used in combination with chemotherapy, no such effect was observed.

"These are very encouraging data, and they support AVI's antisense approach toward cancer," said Gayathri R. Devi, Ph.D., senior scientist for AVI. "In addition, our research continues to show that the c-myc gene is a promising target for cancer therapy, because it is prevalent in a variety of tumor types and appears to be highly correlated with tumor cell proliferation."

About AVI BioPharma

AVI BioPharma develops therapeutic products for the treatment of life-threatening diseases using two technology platforms: NeuGene antisense drugs and cancer immunotherapy. Its lead cancer agent, AVICINE®, a therapeutic cancer vaccine, has completed three Phase II trials in colorectal and pancreatic cancer and is initiating a Phase III pivotal trial in pancreatic cancer, with a supporting study in colorectal cancer. The first application of its NeuGene compounds, Resten-NG™, is designed to treat cancer, cardiovascular restenosis and other cell proliferation disorders by inhibiting the production of a cellular transcription factor, the oncogene c-myc. It is currently in Phase II trials for restenosis and in a Phase I/II trial for cancer. AVI has completed three Phase I NeuGene antisense studies that successfully down-regulated the liver enzyme cytochrome P450 and modified drug metabolism, and a Phase I/II trial in polycystic kidney disease. More information about AVI is available on the Company's Web site at http://www.avibio.com/.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements that are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, the results of research and development efforts, the results of preclinical and clinical testing, the effect of regulation by the FDA and other agencies, the impact of competitive products, product development, commercialization and technological difficulties, and other risks detailed in the Company's Securities and Exchange Commission filings.