AVANIR Pharmaceuticals Announces Exercise of Over-Allotment Option by Underwriter

SAN DIEGO--(BUSINESS WIRE)--June 10, 2004--AVANIR Pharmaceuticals (AMEX:AVN) today announced that the underwriter of its recently announced public offering has exercised its option to purchase an additional 2,952,756 shares of common stock from AVANIR at the public offering price of $1.27 per share to cover over-allotments. Including the over-allotment shares, 22,637,796 shares have been sold through the public offering, resulting in gross proceeds to the company of approximately $28,750,000.

Lazard Freres & Co. LLC acted as sole underwriter of the offering. Copies of the final prospectus may be obtained from the offices of Lazard Freres & Co. LLC, 30 Rockefeller Plaza, New York, NY 10020.

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 a drug discovery and development company focused on the development of treatments for chronic diseases. Further information about AVANIR can be found at www.avanir.com.

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.

CONTACT: AVANIR Pharmaceuticals
Patrice Saxon, Investor Relations, 858-622-5202
psaxon@avanir.com

SOURCE: AVANIR Pharmaceuticals