AVI Biopharma Announces First Quarter 1998 Financial Results.

PORTLAND, Ore.--(BW HealthWire)--May 5, 1998--AVI BIOPHARMA ("AVI")(Nasdaq: AVII, AVIIW), formerly known as AntiVirals, today reported results for the three months ended March 31, 1998. For the first quarter 1998, the company reported a net loss of $1,424,858 or $0.13 per share, compared to a net loss of $592,696, or $0.07 per share in 1997. AVI reported research contract revenue in the first quarter 1998 of $5,650.

Operating expenses increased from $621,751 in the first quarter of 1997 to $1,601,229 in 1998. This increase is attributable primarily to the pre-clinical testing of the company's technologies and includes increases in research and development staffing and expenses associated with outside collaborations, such as the development of large scale manufacturing capabilities in accordance with FDA guidelines. In the first quarter of 1998, research and development expenses increased to $1,294,264 from $451,723 for the first quarter of 1997.

Commenting on the company's activities during the first quarter, Dr. Denis Burger, President and CEO of AVI BioPharma stated, "During the first quarter of 1998, AVI achieved two important milestones. In January, we initiated manufacturing contracts for the synthesis of our proprietary antisense compounds under the FDA's cGMP regulations, a significant step toward the filing of Investigational New Drug applications for our NEUGENE(R) technology. AVI also progressed with its acquisition of ImmunoTherapy Corporation (ITC), which is expected to close in June 1998. The first quarter of 1998 also marked the completion of Phase II studies of ITC's CTP-37 vaccine for the treatment of metastatic colorectal cancer. We are very encouraged by the preliminary results of the multicenter study, which confirmed the safety of the vaccine and its ability to produce antibodies against hCG."

"Looking ahead," Dr. Burger continued, "as we continue to advance our clinical programs, we are also focused on establishing meaningful corporate partnerships that will assist our products through the development process to commercialization."

AVI BioPharma, formerly known as AntiVirals Inc., is dedicated to the development and commercialization of products for the treatment of life-threatening diseases. In the antisense field, the company has developed a patented class of gene targeted drugs, called NEUGENES(R), which may be useful in the treatment of a wide range of human diseases including cancer and restenosis, a cardiovascular disease. The company has also developed a drug delivery technology, called CYTOPORTER(tm), which may be useful in improving delivery of many FDA-approved drugs, drugs in development, and antisense compounds.

"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. -0-

                            ANTIVIRALS INC.
                     (A Development Stage Company)
                       STATEMENTS OF OPERATIONS

                                             Three Months Ended
                                                   March 31,
                                           1998              1997

Revenues, from grant and
 research contracts                  $      5,650      $       --
Operating expenses:
Research and development                1,294,264           451,723
General and administrative                306,965           170,028
                                     ------------      ------------
                                        1,601,229           621,751
Other income:
   Interest income, net                   170,721            29,055
Net loss                             $ (1,424,858)     $   (592,696)
                                     ============      ============
Net loss per share                   $      (0.13)     $      (0.07)
                                     ============      ============
Shares used in per
 share calculations                    11,147,840         8,233,548
                                     ============      ============

                       BALANCE SHEET HIGHLIGHTS

                                          March 31,     December 31,
                                             1998           1997
                                         -----------     -----------
Cash and cash equivalents                $15,790,550     $17,638,936
Total current assets                      16,339,810      17,657,978
Total assets                              17,526,343      18,782,214
Total current liabilities                    481,436         464,452
Total shareholders' equity               $17,044,907     $18,317,762

CONTACT: Denis R. Burger, Ph.D.

President & CEO

Alan P. Timmins

COO & CFO 

[phone]