Journal of Virology Publication Highlights Antiviral Activity Of AVI BioPharma’s NeuGene Antisense Compound

PORTLAND, Ore. — May 20, 2004 — AVI BioPharma, Inc. (Nasdaq: AVII), today announced publication of positive preclinical data relating to its NeuGene® antisense compound in the June issue of the Journal of Virology.

The study, conducted in cooperation with The Scripps Research Institute (TSRI), evaluated the ability of AVI’s NeuGene agent to inhibit replication of the mouse hepatitis virus (MHV). MHV is a member of the coronavirus family, Coronaviridae, which includes the virus that causes severe acute respiratory syndrome (SARS), as well as many viruses associated with the common cold.

"This paper describes a truly rigorous analysis of how AVI’s NeuGene antisense compounds block viral replication in cell culture," said Patrick L. Iversen, Ph.D., senior vice president of research and development at AVI. "These results suggest that our NeuGene antisense compound has therapeutic potential for the control of coronavirus infection. Our preclinical work in MHV provides additional preparation for our expanded antiviral program."

The paper, titled "Antisense Morpholino-Oligomers Directed against the 5’ End of the Genome Inhibit Coronavirus Proliferation and Growth," describes research evaluating the inhibition of MHV using several NeuGene compounds in cell culture. This study tested several NeuGene compounds to determine the sequence-specific antiviral efficacy against MHV. The best NeuGene antisense compounds were delivered to more than 80% of cells in culture and were found to inhibit virus titers by tenfold to a hundredfold in a sequence-specific and dose-responsive manner.

About AVI BioPharma

AVI BioPharma develops therapeutic products for the treatment of life-threatening diseases using two technology platforms: third-generation NeuGene antisense drugs and cancer immunotherapy. AVI’s lead NeuGene antisense compound is designed to target cell proliferation disorders, including cardiovascular restenosis, cancer and polycystic kidney disease. In addition to targeting specific genes in the body, AVI’s antiviral program uses NeuGene antisense compounds to target single-stranded RNA viruses, including West Nile virus, SARS coronavirus, calicivirus and hepatitis C. AVI’s second technology, Avicine®, is a therapeutic cancer vaccine with late-stage trials planned for the treatment of pancreatic cancer. 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.