AVANIR Announces $16 Million Common Stock Offering

AVANIR Pharmaceuticals (AMEX: AVN) today announced it
has obtained commitments to purchase $16.15 million of its common
stock in a registered-direct offering. Under the terms of the
transaction, AVANIR will sell approximately 6.1 million shares of
Class A common stock to a select group of institutional investors at a
price of $2.65 per share, which represents no discount to the closing
market price of the stock on October 17, 2005. Xmark Funds, Federated
Kaufmann, Jennison Associates LLC and OrbiMed Advisors LLC
participated in the transaction.
   The shares are being offered directly by AVANIR pursuant to an
effective shelf registration statement previously filed with the
Securities and Exchange Commission. AVANIR did not use a placement
agent on this transaction and therefore the company will receive the
full proceeds of the offering upon closing.
   The public offering is being made only by means of a prospectus
and prospectus supplement. Copies of the prospectus and prospectus
supplement relating to the offering may be obtained from AVANIR
Pharmaceuticals, 11388 Sorrento Valley Road, San Diego, CA.
   This press release does not and shall not constitute an offer to
sell or the solicitation of an offer to buy any of the securities, nor
shall there be any sale of the securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any state.
   AVANIR Pharmaceuticals, based in San Diego, is focused on
developing and commercializing novel therapeutic products for the
treatment of chronic diseases.
   The information contained in this press release, including any
forward-looking statements contained herein, should be reviewed in
conjunction with the company's most recent Annual Report on Form 10-K
and other publicly available information regarding the company. Copies
of such information are available from the company upon request. Such
publicly available information sets forth many risks and uncertainties
related to the company's business and technology. Forward-looking
statements often contain such words like "estimate," "anticipate,"
"believe," "plan" or "expect." The Company disclaims any intent or
obligation to update these forward-looking statements.