Targeted Genetics Advances Its Manufacturing Leadership; Additional Manufacturing Capabilities Reported at Scientific Meeting.

SEATTLE & BALTIMORE -- Targeted Genetics Corporation (Nasdaq:TGEND) is reporting new developments in its portfolio of AAV manufacturing capabilities at the American Society of Gene Therapy (ASGT) 2006 Annual Meeting. One advance, reported yesterday afternoon in a poster, titled "Clearance of Helper Adenovirus by an AAV1 Clinical Vector Manufacturing Process" (Abstract #312), describes a robust method for producing adeno-associated virus type 1 (AAV1) vectors. The other, which will be presented today in a poster, titled "Improving the Stability of Ad-AAV Hybrid Vectors" (Abstract #499), enables another proprietary, scalable AAV manufacturing process that may be applicable to commercial production. E[acute accent]"Targeted Genetics' leadership in designing and manufacturing AAV-based products is a defining core competency for our company, and one that continues to generate new product and revenue opportunities," said H. Stewart Parker, president and chief executive officer at Targeted Genetics. "Our ongoing innovation of proprietary manufacture of AAV vectors of high purity raises industry standard for manufacturing AAV-based products using commercially relevant processes. This strengthens our ability to commercialize novel therapies, enhances our competitive position and establishes us as the partner of choice for companies seeking to access AAV development and manufacturing capabilities." E[acute accent]Abstract #312 describes a process for large-scale manufacturing of vectors with AAV type 1 (AAV1) capsid proteins. AAV1 vectors, and other AAV vectors engineered to produce AAV1 capsid proteins may possess advantageous properties in some clinical settings compared with the AAV2 vectors that have been evaluated in clinical trials to date. The process also enables the effective and robust removal of "helper" viruses used in the production of AAV vectors. The use of multiple separation techniques removes helper virus from the vector preparation and a robust heat inactivation step disables any remaining helper virus without affecting the activity of AAV vectors. This method allows for removal of helper virus in quantities that are significantly greater than the amount of helper virus used in the manufacturing process. E[acute accent]Abstract #499 describes a scaleable adenovirus (Ad)-AAV hybrid process of manufacturing AAV. In this method, a hybrid virus that contains AAV sequences, Ad sequences and a gene of choice is used in the manufacturing process of AAV vectors. Modifications of the AAV construct have been made to improve the stability of the Ad-hybrid virus, making this process more relevant for commercial scale applications.

E[acute accent]About Targeted Genetics

E[acute accent]Targeted Genetics Corporation is a biotechnology company committed to the development and commercialization of innovative, targeted molecular therapies for the prevention and treatment of inflammatory arthritis, HIV/AIDS and other acquired and inherited diseases with significant unmet medical need. Targeted Genetics uses its considerable knowledge and capabilities in the development and manufacturing of gene delivery technologies to advance a diverse product development pipeline. Its product development efforts target inflammatory arthritis, HIV/AIDS, congestive heart failure, Huntington's disease, and hyperlipidemia. To learn more about Targeted Genetics, visit its website at www.targetedgenetics.com.

E[acute accent]Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

E[acute accent]This release contains forward-looking statements regarding our intellectual property, research programs and clinical trials, our product development and our potential development platforms including AAV vectors and other statements about our plans, objectives, intentions and expectations and other statements about our plans, objectives, intentions and expectations. These statements, involve current expectations, forecasts of future events and other statements that are not historical facts. Inaccurate assumptions and known and unknown risks and uncertainties can affect the accuracy of forward-looking statements. Factors that could affect our actual results include, but are not limited to, results of animal research are not necessarily indicative of results in humans, the timing, nature and results of our research, potential development of alternative technologies or more effective products by competitors, our ability to obtain and maintain regulatory or institutional approvals, our ability to obtain, maintain and protect our intellectual property and our ability to raise capital when needed, as well as other risk factors described in Item 1A. Risk Factors in our report on Form 10-K for the year ended December 31, 2005, and updated in Item 1A. Risk Factors in our Form 10-Q for the quarter ended March 31, 2006. You should not rely unduly on these forward-looking statements, which apply only as of the date of this release. We undertake no duty to publicly announce or report revisions to these statements as new information becomes available that may change our expectations.