AVANIR Implements One-for-Four Reverse Stock Split and New Stock Ticker Symbol

The previously announced one-for-four reverse split by
AVANIR Pharmaceuticals (AMEX:AVN) of its common stock has become
effective, with post-split trading expected to begin under a new
ticker symbol when the market opens for trading tomorrow, January 18,
2006. Following the effectiveness of the reverse split, the stock will
trade under the new ticker symbol "AVN.R."
   The Company's shareholders authorized the Board of Directors to
effect a reverse stock split at the annual meeting of shareholders
held on March 17, 2005. Pursuant to the shareholder authorization,
AVANIR's Board of Directors approved the implementation of the
one-for-four reverse split on January 5, 2006. The reverse split is
intended to provide a share count that is more consistent with the
Company's size, potential economics and total market capitalization.
   Immediately prior to the reverse split, AVANIR had 123.2 million
shares of common stock issued and outstanding. Immediately following
the reverse split, there were approximately 30.8 million shares of
common stock issued and outstanding.
   AVANIR Pharmaceuticals is 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 diseases. AVANIR previously
announced positive results in the second of two required Phase III
clinical trials of Neurodex(TM), an investigational new drug for the
treatment of pseudobulbar affect. Additionally, AVANIR has initiated a
Phase III clinical trial for Neurodex as a potential treatment in
patients with diabetic neuropathic pain, a second indication for
Neurodex. AVANIR has active collaborations with two international
pharmaceutical companies: Novartis International Pharmaceutical Ltd.
for the treatment of inflammatory disease and AstraZeneca for the
treatment of cardiovascular disease. 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 as
"estimate," "anticipate," "believe," "plan" or "expect" or similar
statements are forward-looking statements. Risks and uncertainties for
AVANIR Pharmaceuticals include risks associated with the reverse stock
split, the regulatory approval of Neurodex and the successful
commercialization of Neurodex, if approved by the FDA, as well as
risks described in AVANIR's most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q and from time-to-time in other publicly
available information regarding the company. Risks relating to the
reverse stock split are set forth in these filings and in the
Company's definitive proxy statement on Schedule 14A, filed with the
SEC on December 27, 2005. 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 obligations to update
these forward-looking statements.