AVANIR Receives Nasdaq Staff Determination Letter

Up to 360 Days to Regain Compliance under Nasdaq Marketplace Rules
ALISO VIEJO, Calif.--(Business Wire)--
AVANIR Pharmaceuticals (NASDAQ: AVNR) today announced that it has
received a Staff Determination Letter from Nasdaq notifying the
Company that it is not in compliance with the $1.00 minimum bid price
requirement for continued listing on the Nasdaq Global Market pursuant
to Marketplace Rule 4450(a)(5). This notification, which was received
in a Staff Determination letter dated August 13, 2008, is a standard
communication when the bid price of a Nasdaq-listed company closes
below the minimum $1.00 per share requirement for 30 consecutive
business days. The Staff Determination letter has no effect at this
time on the listing of AVANIR Pharmaceuticals' common stock on the
Nasdaq Global Market and the Company is expected to continue to trade
on the Nasdaq Global Market under the symbol AVNR for at least the
next six months.

The letter states that, in accordance with Marketplace Rule
4450(e)(2), the Company will be afforded 180 calendar days, by
February 9, 2009, to regain compliance by having the bid price of its
common stock close at $1.00 per share or more for a minimum of 10
consecutive business days.

If the Company does not regain compliance with Marketplace Rule
4450(a)(5) by February 9, 2009, Nasdaq will provide written
notification that the Company's common stock may be delisted. At that
time, the Company may appeal Nasdaq's decision to a Listing
Qualifications Panel pursuant to the Marketplace Rule 4800 Series.
Alternatively, the Company may consider applying to transfer the
listing of its common stock to The Nasdaq Capital Market if it
satisfies the requirements for initial inclusion set forth in
Marketplace Rule 4310(c), other than the $1.00 minimum bid price
requirement of Marketplace Rule 4310(c)(4). If such an application
were approved, the Company would be afforded the remainder of a second
180-day compliance period, or until about August 9, 2009, to regain
compliance with the $1.00 minimum closing bid price requirement while
its common stock trades on The Nasdaq Capital Market.

About AVANIR

AVANIR Pharmaceuticals is focused on acquiring, developing, and
commercializing novel therapeutic products for the treatment of
chronic diseases. AVANIR's products and product candidates address
therapeutic markets that include the central nervous system,
inflammation, and infectious diseases. AVANIR's lead product
candidate, Zenvia, is being developed for the treatment of
pseudobulbar affect (PBA) and is the subject of an approvable letter
from the U.S. Food and Drug Administration (FDA) for that indication.
The Company has initiated a confirmatory Phase III study under a
Special Protocol Assessment (SPA) agreement with the FDA utilizing a
new lower quinidine dose formulation of Zenvia intended to address
safety concerns raised in the Agency's approvable letter for Zenvia in
the treatment of PBA. Additionally, in April 2007 AVANIR announced
meeting all primary endpoints in a Phase III clinical trial with
Zenvia in patients with diabetic peripheral neuropathic (DPN) pain. In
May 2008 the Company released top-line results of a formal
pharmacokinetic (PK) study that identified alternative lower-dose
quinidine formulations of Zenvia for DPN pain intended to deliver
similar efficacy and improved safety/tolerability versus the
formulations previously tested for this indication. AVANIR has
licensed its MIF inhibitor program to Novartis International
Pharmaceuticals Ltd. and has sold its anthrax monoclonal antibody
program to Emergent BioSolutions. 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 and further information about pseudobulbar
affect can be found at www.PBAinfo.org.

Forward Looking Statements

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," "intend," "anticipate," "believe,"
"plan," "goal," "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 the Company's securities will remain listed on the
Nasdaq Global Market or that they will qualify for listing on the
Nasdaq Capital Market or any other securities exchange. There can also
be no assurance that the Company will meet development milestones in
the coming year, that the results of these milestones will be positive
or that even if the results are positive, that such events will have a
positive impact on the Company's stock price. Risks and uncertainties
affecting the Company's financial condition and operations 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 to update these forward-looking
statements.

To be included on AVANIR's e-mail alert list; click on the link
below or visit AVANIR's website:

http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0

AVANIR Investor Contacts
Eric Benevich or Brenna Mullen, 949-389-6700
ir@avanir.com

Copyright Business Wire 2008