AVI BioPharma Announces Publication of SARS NeuGene Antisense Studies in the Journal of Virology

PORTLAND, Ore. — July 19, 2005 — AVI BioPharma, Inc. (Nasdaq: AVII), today announced the publication of an article describing preclinical studies in which its NeuGene® antisense compounds were used to inhibit infection by the severe acute respiratory syndrome coronavirus (SARS-CoV). These studies were conducted at The Scripps Research Institute (TSRI) in La Jolla, Calif. The article was published in the August 2005 Journal of Virology and will be available online at http://jvi.asm.org/current.dtl.

“This is one of the most comprehensive evaluations of a NeuGene antisense antiviral drug ever published,” said Patrick L. Iversen, Ph.D., senior vice president of research and development at AVI. “These data emphasize the robust antiviral potential of our antisense drugs, which demonstrates again that our NeuGene antisense agents are highly promising as therapies to treat not only SARS coronavirus, but also a variety of other viruses.”

The experiments outlined in the paper demonstrate that SARS-CoV develops resistance to NeuGene antisense only after multiple mutations in the viral genome, showing that the NeuGene agent is less susceptible to viral escape than small molecule drugs. Further, the fact that the resistant mutations occurred only at the NeuGene binding site verifies the antisense mechanism of action.

SARS-CoV is a potent pathogen of humans with the potential for rapid global spread. The NeuGene antiviral agent for SARS-CoV reduced virus-induced cell death and diminished viral spread. Further, the antiviral effects were observed when the compound was administered at any point in time before maximal viral growth. These observations confirm the powerful therapeutic potential against SARS-CoV infection.

About AVI BioPharma

AVI BioPharma develops therapeutic products for the treatment of life-threatening diseases using third-generation NeuGene antisense drugs. 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 combat disease by targeting single-stranded RNA viruses, including West Nile virus, hepatitis C virus, dengue virus and Ebola virus. More information about AVI is available on the company’s Web site at 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.