AVI BioPharma and Lorus Therapeutics Form Dynamic Antisense Research Collaboration.

Health/Medical Writers and Business Editors

PORTLAND, Ore.--(BW HealthWire)--July 11, 2000

Companies team up to develop novel drug treatments for cancer and

infectious diseases.

AVI BioPharma, Inc. (Nasdaq:AVII)(Nasdaq:AVIIW)(Nasdaq:AVIIZ) announced today that it has entered into a five-year agreement with Lorus Therapeutics Inc. (TSE:LOR)(OTCBB:LORFF) of Toronto, Canada, to evaluate and co-develop antisense drug therapies for cancer and infectious diseases.

Under the terms of the agreement, each company will retain an ownership interest in any jointly developed compound, and drugs discovered together may also be developed independently with royalty payments to the other party.

The scientific collaboration will capitalize on the companies' complementary technologies and allows AVI and Lorus to identify new drug candidates to treat cancer and infectious diseases through the sharing of intellectual property, patented technologies and expertise.

AVI will contribute its NEUGENE(R)-based antisense backbone, noted for enhanced potency, specificity, stability and low toxicity characteristics. For its part, Lorus will make available a series of its proprietary cancer and infectious disease targets and will spearhead the collaborative research program by performing molecular, cell and animal biology experiments.

"We are enthusiastic about this joint initiative as both AVI and Lorus are recognized leaders in the area of antisense technology," said Denis Burger Ph.D., Chairman and Chief Executive Officer of AVI. "This research collaboration is exciting because it combines the unique expertise within AVI and Lorus to provide new opportunities for developing novel drug therapies."

"This alliance between Lorus and AVI combines leading antisense platforms to generate numerous drug candidates. The collaboration emphasizes Lorus' ongoing commitment to secure opportunities that strengthen its product pipeline and create additional value for the shareholders," said Philippe G. Lacaille, Chairman and Chief Executive Officer of Lorus.

AVI entered into this agreement through Lorus' wholly owned subsidiary, GeneSense Technologies Inc., whose lead antisense compounds include GTI-2040 and GTI-2501. AVI's lead antisense drugs are Oncomyc-NG(TM) and Resten-NG(TM). Oncomyc-NG, GTI-2040, and GTI-2501 have demonstrated significant anti-tumor activity with different cancers in pre-clinical or early clinical testing. Resten-NG has recently entered Phase II clinical trials for cardiovascular restenosis.

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), is in 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. AVI has begun clinical trials of Resten-NG in cardiovascular restenosis, the first application of its novel third-generation NEUGENE antisense technology. 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. More information about AVI is available on the Company's website at http://www.avibio.com.

Lorus is a biopharmaceutical company focused on the research and development of cancer therapies. Lorus' goal is to capitalize on its research, pre-clinical, clinical and regulatory expertise by developing new drug candidates that can be used, either alone, or in combination, to successfully manage cancer. Through its own discovery efforts and an active acquisition and in-licensing program, Lorus is building a portfolio of promising anti-cancer drugs. Late-stage clinical developments and marketing will be done in cooperation with strategic pharmaceutical partners. Founded in 1986, Lorus Therapeutics Inc. is a public company listed on the Toronto Stock Exchange under the symbol LOR, and on the NASDAQ OTC BB exchange under the symbol LORFF. Lorus Therapeutics Inc.'s press releases are available on the Company's website at http://www.lorusthera.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.