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.

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