AVANIR Amends Terms of Existing Warrant; Warrant to Expire if Not Exercised by July 26, 2005

AVANIR Pharmaceuticals (AMEX:AVN) today announced that
the holder of its existing Class G warrant has until July 26, 2005 to
exercise the warrant for 757,050 shares of Class A common stock. On
May 27th, 2005, AVANIR filed a registration statement with the
Securities and Exchange Commission to register for resale the
underlying common shares issuable upon the exercise of the Class G
warrant. AVANIR will receive $1,097,722 if the holder timely exercises
its rights to purchase all of the shares underlying the warrants. In
exchange for granting these registration rights, AVANIR and the
warrant holder agreed to increase the warrant exercise price from
$1.37 to $1.45 per share.
   AVANIR Pharmaceuticals is a pharmaceutical company focused on
developing and commercializing novel therapeutic products for the
treatment of chronic diseases. AVANIR's product candidates address
therapeutic markets that include central nervous system and
cardiovascular disorders, inflammation, and infectious disease. AVANIR
expects to submit the final module of its rolling new drug application
to the U.S. Food and Drug Administration for its lead product
candidate, Neurodex(TM), in mid-2005. Recently, AVANIR partnered its
preclinical research and development program for inflammatory disease
with Novartis. The Company's first commercialized product, Abreva(R),
is marketed in North America by GlaxoSmithKline Consumer Healthcare
and is the leading over-the-counter product for the treatment of cold
sores. Further information about AVANIR can be found at
www.avanir.com.

   Except for the historical information presented herein, matters
discussed in this press release contain forward-looking statements
that are subject to certain risks and uncertainties that could cause
actual results to differ materially from any future results,
performance or achievements expressed or implied by such statements.
Statements that are not historical facts, including statements that
are preceded by, followed by, or that include such words like
"estimate," "anticipate," "believe," "intend," "plan," or "expect" or
similar statements are forward-looking statements. Forward looking
statements include, but are not limited to, risks associates with the
timing of the Company's new drug application for Neurodex, regulatory
decisions by the FDA for the Company's drug candidates, milestones and
royalties earned from licensees, and results of clinical trials or
product development efforts, as well as risks described in the
Company's most recent Annual Report on Form 10-K and in subsequent
quarterly reports on Form 10-Q and from time-to-time in other publicly
available information regarding the Company. Copies of such
information are available from AVANIR upon request. Such publicly
available information sets forth many risks and uncertainties related
to AVANIR's business and technology. The company disclaims any intent
or obligation to update these forward-looking statements.