On September 30, 2009, AVI BioPharma, Inc. (the "Company") entered into a contract amendment to its contract HDTRA 1-07-C-0010 with the U.S. Defense Threat Reduction Agency ("DTRA") to support additional tasks for the continued development of DTRA's programs with the Transformational Medical Technologies Initiative ("TMTI"). Under this amendment, DTRA has expanded the scope and value of the contract to include the funding of additional research and development relating to the Company's Junín virus drug candidate. There is an additional cost modification of $11.5 million, thus increasing the contract amount to $45.4 million.

The following exhibit is being furnished (not filed) herewith:

99.1    Press release, dated October 5, 2009, entitled "AVI BioPharma Receives
        Expanded Contract from U.S. Department of Defense to Develop its Drug
        Candidate for the Treatment of Junín Virus Infection"