Avigen Reports Results for the Three Months Ended March 31, 2005

Alameda, CA, April 28, 2005 -- Avigen, Inc. (Nasdaq: AVGN - News ) today reported financial results for the three months ended March 31, 2005. At March 31, 2005, Avigen had approximately $72 million in cash, cash equivalents, available-for-sale securities and restricted investments. This compares with approximately $76 million at December 31, 2004.

Avigen reported revenue of $9,000 for the three months ended March 31, 2005, compared with $150,000 reported in the first quarter of 2004. The revenue reported in the quarter ended March 31, 2004 included the recognition of $125,000 of the $2.5 million payment received from Bayer in the first quarter of 2003, which was being recognized ratably over five years. In May of 2004, the agreement between Avigen and Bayer to develop a product for the treatment of hemophilia-B was terminated and the remaining $2.0 million of unrecognized revenue was reflected in Avigen's Statement of Operations in the quarter ended June 30, 2004, thereby ending any future revenue recognition from the Bayer payment.

Total operating expenses for the three months ended March 31, 2005 were $5.5 million, thirty percent lower than the $7.9 million reported for the same period in 2004. The decrease was primarily related to Avigen's strategic decision last summer to realign, restructure and reduce staffing in July 2004 as part of the company's move to exclusively focus on product development candidates for the treatment of serious neurological diseases and discontinue the hemophilia-B trial.

For the three months ended March 31, 2005, Avigen reported a net loss of $5.2 million, or $0.25 per share, compared with a net loss for the same period in 2004 of $7.3 million, or $0.36 per share.

About Avigen

Avigen, Inc., based in the San Francisco Bay Area, is committed to developing innovative therapeutics to treat serious disorders, primarily focused on neurological conditions. Avigen recently announced that it will exclusively focus on the development of traditional pharmaceutical products, particularly small molecules and biologics. Additional information can be found at www.avigen.com .

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Click here to view Statement of Operations and Condensed Balance Sheets

Contact:  Michael Coffee
Chief Business Officer
Avigen, Inc.
1301 Harbor Bay Parkway ,  Alameda , CA 94502
Tel: 510-748-7372
Fax: 510-748-7155
Internet: mcoffee@avigen.com

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