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Targeted Genetics Highlights Inflammatory Arthritis Program and Robust AAV Product Development Platform at the American Society of Gene Therapy Annual Meeting.

SEATTLE -- Presentations Include Preliminary Data from an Ongoing Phase I/II Trial of tgAAC94 in Patients with Inflammatory Arthritis and 13 Additional Abstracts

Targeted Genetics Corporation (Nasdaq:TGEND) and its academic and corporate collaborators will report data in 14 presentations at the 9th Annual Meeting of the American Society of Gene Therapy (ASGT). The meeting will take place June 1 - June 5 in Baltimore, Maryland. Two presentations will discuss preliminary safety and efficacy data from an ongoing Phase I/II clinical trial of tgAAC94 in patients with inflammatory arthritis, and two additional presentations will describe other advances in the company's inflammatory disease program. Research conducted by Dr. John Engelhardt, Ph.D., Director of the Center for Gene Therapy, and Professor, Department of Anatomy and Cell Biology, at the University of Iowa, and funded by Targeted Genetics, will be featured as one of the "Top Five Abstracts" at the Presidential Symposium on June 3rd (Abstract # 807). Additional presentations will focus on advances in AAV manufacturing, basic and applied AAV biology and Targeted Genetics' collaborations in the areas of Huntington's disease and congestive heart failure.

"As a company committed to developing cutting-edge therapies for diseases with significant unmet medical need, we recognize the importance of advancing both the science and the commercial potential of AAV-based therapies," said H. Stewart Parker, president and chief executive officer of Targeted Genetics. "These presentations at ASGT reflect our success in both of these endeavors. We are making significant progress in our product development programs in the areas of inflammatory disease, Huntington's disease and congestive heart failure, while also enhancing our manufacturing capabilities. Our commercial activities are built on a solid foundation of AAV biology, and we are pleased to share the advances that we and our collaborators have made in this area with the gene therapy community."

Presentations relevant to Targeted Genetics' product development programs are:

Preliminary Phase I/II data from an ongoing trial of tgAAC94 in patients with inflammatory arthritis:

Workshop 225:

Musculo-Skeletal: Gene Expression and Immunology of Musculoskeletal Gene Therapy "Clinical Development of an AAV Vector Expressing the TNF Receptor: Fc Fusion Gene in Inflammatory Arthritis." Oral presentation -- Thursday, June 1.

Abstract #1092

"Clinical Studies of Intra-Articular Administration of a Recombinant Adeno-Associated Vector Contain a TNF-alpha Antagonist Gene in Inflammatory Arthritis." Oral Presentation -- Sunday, June 4.

Inflammatory arthritis preclinical data:

Abstract #578

"Suppression of Inflammation Following Intramuscular Administration of Pseudotyped AAV-TNFR:Fc Vectors in a Rat Model of Arthritis." Poster Presentation -- Friday, June 2.

Abstract #983

"Repeat Intra-Articular Administration of AAV2 Vectors to Rat Joints." Poster Presentation -- Saturday, June 3.

AAV Manufacturing:

Abstract #312

"Clearance of Helper Adenovirus by an AAV1 Clinical Vector Manufacturing Process." Poster Presentation -- Thursday, June 1.

Abstract #499

"Improving the Stability of Ad-AAV Hybrid Vectors." Poster Presentation -- Friday, June 2.

Huntington's Disease:

Abstract #414

"Non-Allele Specific RNA Interference in the CAG140 Knock-In Mouse Model of Huntington's Disease." Oral Presentation -- Friday, June 2.

Congestive Heart Failure:

Abstract #557

"A Study of AAV2/1/SERCA2a Delivered Via the V-Focus Cardiac Delivery System in an Ovine Pacing Model of Heart Failure." Poster Presentation -- Friday, June 2.

AAV Biology:

Abstract #1

"Species Choice for Animal Modeling Cystic Fibrosis and Gene Therapy in the Airway." Oral presentation -- Thursday, June 1.

Abstract #10

"Adeno-Associated Virus Type-1 Vectors Transduce Human Polarized Airway Epithelia without Polarity Preference." Oral Presentation -- Thursday, June 1.

Abstract #106

"rAAV2 Traffics through Both the Late and Recycling Endosomes in a Dose-Dependent Fashion." Poster Presentation -- Thursday, June 1.

Abstract #118

"In Vivo Tracking of Long Term Gene Expression of AAV1 Using Fluorescence Imaging System." Poster Presentation -- Thursday, June 1.

Abstract #492

"Biodistribution and Integration Assessment of AAV1 gag-PR-RT((delta)RnaseH) after Intramuscular Administration in Rabbits." Poster Presentation -- Friday, June 2.

Abstract #807

"NADPH-Dependent Endosomal ROS is Critical for rAAV Capsid Processing During Infection." Oral Presentation -- Saturday, June 3.

For more information about the 9th Annual Meeting of the American Society of Gene Therapy, please refer to www.asgt.org.

About Targeted Genetics

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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This release contains forward-looking statements regarding our potential development platforms including AAV vectors, the data to be collected in our clinical trials, the establishment or determination of efficacy endpoints from the data collected in our clinical trials, the timely and complete accrual of patients in the our clinical trials, our ability to commercialize any of our products in clinical trials, our ability to produce our product candidates at large scale commercial production 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 recruit and enroll suitable trial participants, 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.
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