AVI Biopharma Receives NIH Research Grant to Support Ongoing Antisense Development.

PORTLAND, Ore.--(BW HealthWire)--Nov. 18, 1998--AVI BIOPHARMA ("AVI")(Nasdaq: AVII, AVIIW) today announced that Patrick L. Iversen, Ph.D., Vice President of Research and Development of AVI and Thomas Porter, M.D. of the University of Nebraska Medical Center have been awarded a small business technology transfer grant from The National Institutes of Health (NIH). The initial phase of this grant totals approximately $100,000 to investigate therapeutic applications of imaging microbubbles. AVI recently acquired the microbubble technology from The University of Nebraska Medical Center for site-specific delivery of its antisense compounds, NEUGENES(R).

Microbubbles have been utilized in the clinic as intravenous ultrasound contrast agents for a number of applications including as an approach to measure the extent of injury following a heart attack. The NIH grant will support studies that will include localized organ and vascular delivery of AVI's intravenously injected antisense oligonucleotides through the non-invasive direction of ultrasound. A second aspect of these studies will be to determine the ability of intravenous microbubbles to induce clot microfragmentation of acute coronary thrombus. These studies should provide a strong rationale for continued Phase II research to demonstrate microbubble enhanced delivery in preclinical pig models. The NIH may provide future Phase II grant support of up to one half million dollars.

Denis Burger, Ph.D., President and CEO of AVI BioPharma, stated, "AVI's microbubble technology represents an additional approach for site specific delivery of our gene-targeted drugs for the treatment of coronary disease and cancer. This unique technology allows antisense compounds to be directed to specific sites in the patient by projecting an ultrasound beam to the selected areas. This new delivery technology will complement our existing delivery strategies for antisense compounds and provide us with an extensive repertoire of antisense delivery mechanisms."

AVI BioPharma Inc. is dedicated to the development and commercialization of products for the treatment of life-threatening diseases using three platform technologies: immunotherapy for cancer, gene-targeted drugs and intracellular drug delivery engines. Its lead clinical agent, Avicine(TM), an essentially non-toxic cancer vaccine, will soon enter a Phase III licensing trial in colorectal cancer, a Phase II trial in pancreatic cancer and a Phase II trial in prostate cancer. The Company has also 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 cardiovascular restenosis and cancer. Further, AVI has developed a novel drug delivery technology, called CytoPorter(TM), that may be useful in significantly improving drug uptake while minimizing toxicity for a wide range of FDA approved drugs.

"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.