AVANIR Pharmaceuticals Added to 2005 Russell Indices

AVANIR Pharmaceuticals (AMEX: AVN) today announced that
the Company has been added to the Russell 3000(R), Russell 2000(R) and
the newly created Russell Microcap(TM) Index. AVANIR was added to the
indices as part of Frank Russell Company's annual reconstitution of
U.S. equity indexes. The index membership, which was announced July 1,
2005, will remain in effect for one year.
   Since 1984, the annual reconstitution of the Russell indexes
captures the 3,000 largest U.S. stocks, ranking them by total market
capitalization to create the Russell 3000. The largest 1,000 companies
in the ranking comprise the Russell 1000 Index while the remaining
2,000 companies become the widely used Russell 2000 Index.
   Russell indexes are used by managers for index funds and as
benchmarks for both passive and active investment strategies.
According to the Frank Russell Company, more than $360 billion is
invested in index funds based on Russell's indexes and an additional
$850 billion is benchmarked to them. Investment managers who oversee
these funds purchase shares of member stocks according to that
company's weighting in the particular index.
   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
recently submitted to the FDA the last modules of a "rolling" new drug
application for Neurodex(TM) for the treatment of pseudobulbar affect.
Additionally, AVANIR has initiated a double-blind, placebo-controlled,
multicenter, Phase III clinical trial of Neurodex in patients with
diabetic neuropathic pain. 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.
   Statements in this press release 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 that
are subject to certain risks and uncertainties that could cause actual
results to differ materially from the future results expressed or
implied by such statements. There can be no assurance that AVANIR's
new drug application for Neurodex(TM) will be accepted for filing by
the FDA, that Neurodex will receive regulatory approval, or that even
if such regulatory approval is received, that AVANIR will be able to
market Neurodex successfully. Final review decisions made by the FDA
and other regulatory agencies concerning clinical trial results are
often unpredictable and outside the influence and/or control of the
company. Risks and uncertainties also include the risks set forth in
AVANIR's most recent Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q and from time-to-time in other publicly
available information regarding the Company. Copies of this
information are available from AVANIR upon request. AVANIR disclaims
any intent or obligation to update these forward-looking statements.