Press Release

PORTLAND, Ore.--(BUSINESS WIRE)--July 10, 2007--AVI BioPharma, Inc. (Nasdaq:AVII) announced today that its partner Cook Medical has completed target patient enrollment and released six-month follow-up data from a Phase II clinical trial known as APPRAISAL. The trial, currently being held in Germany, was designed to study the effect of the NEUGENE(R) antisense drug Resten-MP(TM), when used in conjunction with the placement of one or more bare metal stents, in the prevention of cardiovascular restenosis, the narrowing of an artery following a cardiac procedure such as angioplasty.

"We are pleased with the progress our partner Cook Medical has made with our NEUGENE in this trial," said K. Michael Forrest, interim chief executive officer of AVI. "We look forward to continuing our collaboration with Cook Medical as they work to commercialize our technology in the cardiology market."

    Cook's release may be viewed on AVI's website at www.avibio.com.

    About AVI BioPharma

AVI BioPharma develops therapeutic products for the treatment of life-threatening diseases using third-generation NEUGENE antisense drugs and ESPRIT exon skipping technology. AVI's lead NEUGENE antisense compound is designed to target cell proliferation disorders, including cardiovascular restenosis. In addition to targeting specific genes in the body, AVI's antiviral program uses NEUGENE antisense compounds to combat disease by targeting single-stranded RNA viruses, including West Nile virus, hepatitis C virus, dengue virus, Ebola virus and influenza A virus. AVI's NEUGENE-based ESPRIT technology will initially be applied to potential treatments for Duchenne muscular dystrophy. More information about AVI is available on the company's Web site at http://www.avibio.com.

About Cook Medical

Cook Medical was the first company to introduce interventional devices in the United States. Today, the company participates in all global markets, integrating device design, biopharma, gene and cell therapy and biotech to enhance patient safety and improve clinical outcomes. Cook won the prestigious Medical Device Manufacturer of the Year for 2006 from Medical Device and Diagnostic Industry magazine. For more information, visit www.cookmedical.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 preclinical 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.

    CONTACT: AVI BioPharma, Inc.
             Michael Hubbard, 503-227-0554
             hubbard@avibio.com
             or
             Lippert/Heilshorn & Associates Inc.
             AVI Investor Contacts
             Jody Cain, 310-691-7100
             jcain@lhai.com
             or
             Brandi Floberg, 310-691-7100
             bfloberg@lhai.com
             or
             Waggener Edstrom Worldwide Healthcare Practice
             AVI Press Contact
             Jenny Moede, 503-443-7000
             jmoede@waggeneredstrom.com

    SOURCE: AVI BioPharma, Inc.