AVI BioPharma Scientists Recommend Development of Telomerase-Inhibiting Compound as Anti-Cancer Therapeutic.

Health/Medical Writers

PORTLAND, Ore.--(BUSINESS WIRE)--June 7, 2000

Compound adds to inventory of AVI-licensed technologies that show

potential in cancer and other life-threatening diseases.

Scientists at AVI BioPharma, Inc. (Nasdaq:AVII) (Nasdaq:AVIIW) (Nasdaq:AVIIZ) and the University of Nebraska Medical Center have demonstrated the cancer therapeutic promise of a telomere-inhibiting compound licensed by AVI.

The study results demonstrate that the compound, called TAG-6, will reach therapeutic levels without causing severe side effects. AVI senior vice president of Research and Development Patrick Iversen, Ph.D., and colleagues report on the findings in the April/May issue of the Journal of Hematotherapy and Stem Cell Research.

The study was designed to analyze the action of TAG-6 within an animal model and observe any adverse reactions. The results showed scientists achieved favorable drug concentration levels with no toxicity, demonstrating promise as an alternative to traditional chemotherapy, which often causes multiple adverse reactions.

"These pharmacokinetic data suggest a favorable therapeutic margin of safety," Iversen said. "They also demonstrated a practical dose interval and established that the compounds can be administered transdermally, without toxicity. This means the compound shows potential as an easily administered, economical cancer therapeutic."

Denis R. Burger, Ph.D., CEO of AVI, said, "This study is another example of our commitment to advancing our research initiatives. These promising results suggest that with further development, we will have another weapon in the war against cancer."

Although TAG-6 is a shortened form of an oligonucleotide, it is not considered an antisense compound, but acts as a telomere-mimic with anti-cancer effects.

Chromosome ends, or telomeres, are typically regulated by the enzyme telomerase. In cancer, increased telomerase activity, which occurs in approximately 85 percent of all cancers, prevents the normal shortening of the telomeres. As a telomere mimic, TAG-6 stops telomerase activity, thereby halting cancer-linked activity.

The Journal of Hematotherapy and Stem Cell Research is a peer-reviewed bimonthly journal covering developments in the rapidly expanding area of ex vivo manipulation of cells of the hematopoietic system for therapeutic purposes. More information about the publication is available at www.liebertpub.com.

AVI BioPharma develops therapeutic products for the treatment of life-threatening diseases using two technology platforms: cancer immunotherapy and gene-targeted drugs. Its lead clinical agent, AVICINE(TM), a therapeutic cancer vaccine, is undergoing a Phase II trial in pancreatic cancer, and will soon enter a Phase III pivotal trial in colorectal cancer and a Phase II trial in prostate cancer. The first application of its NEUGENE(R) compounds, Resten-NG(TM), 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 has completed Phase I trials for restenosis. More information about AVI is available on the Company's website 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 pre-clinical 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.