AntiVirals Reports Fiscal 1997 Second Quarter Results.

PORTLAND, Ore.--(BW HealthWire)--August 6, 1997--ANTIVIRALS INC. (Nasdaq NM: AVII, AVIIW) today reported fiscal 1997 second quarter results for the period ended June 30, 1997.

For the second quarter ended June 30, 1997, the company's net loss was $1,265,395 or $0.13 per share on 9,387,998 shares outstanding, compared with a net loss of $581,725 or $0.07 per share on 8,085,263 shares, for the second quarter 1996.

The net loss for the six month period ending June 30, 1997 was $1,858,091 or $0.20 per share on 9,085,566 shares outstanding, compared with a net loss of $835,972 or $0.11 per share on 7,760,112 shares for the same period in 1996.

Research and development expenses in the second quarter of 1997 increased to $921,930 from $442,581 in 1996. For the six months ended June 30 1997, research and development increased to $1,373,653 compared to $792,146 from the comparable period in 1996.

Operating expenses increased to $1,332,042 in the second quarter of 1997 from $589,425 in the second quarter of 1996 and to $1,953,793 for the six months ended 1997 from $1,014,311 for the comparable period in 1996. These increases resulted principally from the addition of research and development staff and expenses associated with outside collaborations, regulatory affairs and pre-clinical testing of the company's technologies.

Commenting on the company's financial results and activities for the first half of the year, Dr. Denis Burger, Chief Executive Officer of AntiVirals Inc., stated, "In the first half of 1997, we completed our initial public offering and continued to fuel our R&D efforts. Our financial results for the second quarter 1997 continue to be in line with our expectations. Entering our fiscal 1997 third quarter, we plan to continue aggressively pursuing the development of both our antisense and drug delivery technologies."

AntiVirals Inc. is a pioneer company in the field of gene- inactivating technology referred to as antisense and has developed a patented class of NEU-GENE antisense compounds which may be useful in the treatment of a wide range of human diseases. The first application of the company's NEU-GENE antisense technology is designed to treat restenosis, a cardiovascular disease. The company has also developed new drug delivery technology, called CYTOPORTER, which may be useful with many FDA-approved drugs as well as with its antisense compounds. The company's first planned drug delivery products combine its CYTOPORTER delivery engine with two FDA-approved drugs, cyclosporin and paclitaxel (Taxol), to enhance delivery and reduce side effects associated with these drugs.

The information contained herein was obtained from the management of AntiVirals Inc. and other sources deemed to be reliable. This does not constitute the solicitation of the purchase or sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by the company as its investor relations firm. -0-

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

                                 Three Months Ended      Six Months Ended
                                       June 30,              June 30,
                                   1997      1996         1997         1996


Revenues,  from  grant and
 research contracts            $  3,754   $    --   $    3,754    $      --

Operating expenses:
 Research and development       921,830   442,581    1,373,653      792,146
  General and administrative    410,112   146,844      580,140      222,165
                              1,332,042   589,425    1,953,793    1,014,311

Other income:
 Interest income:              62,893       7,700       91,948       81,589
  Realized gain on sale of
   short-term  investments         --          --           --       96,750
                               62,893       7,700       91,948      178,339

Net loss                  $(1,265,395) $ (581,725) $(1,858,091)  $ (835,972)

Net loss  per  share      $     (0.13) $    (0.07) $     (0.20)  $    (0.11)

Shares used in per share
 calculations               9,387,998   8,085,263    9,085,566    7,760,112
-0-

                         BALANCE SHEET HIGHLIGHTS

                                June 30,             December 31,
                                  1997                   1996
Cash and cash equivalents   $ 17,555,893           $    3,011,229
Total current assets          17,584,911                3,069,484
Total assets                  18,537,513                4,248,899
Total current liabilities        893,351                  330,807
Total shareholders' equity  $ 14,522,197           $      796,127
-0-

CONTACT: Denis R. Burger, Ph.D.

Chief Executive Officer

Alan P. Timmins

Chief Financial Officer

[phone]

or

INVESTOR RELATIONS CONTACT:

Evan D. Smith, CFA

[e-mail]

Olga Fleming

[e-mail]

Lippert/Heilshorn & Associates, Inc.

[phone]