Targeted Genetics Announces $5.0 Million Public Offering of Common Stock

The shares were offered through a prospectus supplement under theCompany's shelf registration statement previously filed with theSecurities and Exchange Commission, which was declared effective onJuly 7, 2004.

If the closing occurs as expected, the gross proceeds would be$4,988,728. The Company estimates net proceeds from the financing tobe approximately $4.8 million after deducting the estimated costsassociated with the offering. The Company plans to use the netproceeds of this financing for working capital and other generalcorporate purposes.

This press release shall not constitute an offer to sell nor thesolicitation of an offer to buy, nor shall there be any sales of thesesecurities in any jurisdiction in which such an offer, solicitation orsale would be unlawful prior to registration or qualification underthe securities laws of any such jurisdiction.

Safe Harbor Statement under the Private Securities Litigation

Reform Act of 1995:

This release contains forward-looking statements regarding theamount of proceeds expected to be received from the offering, theexpected timing of the closing of the offering, Targeted Genetics'expected use of these proceeds and other statements about TargetedGenetics' plans, objectives, intentions and expectations. Thesestatements involve current expectations, forecasts of future eventsand other statements that are not historical facts. Inaccurateassumptions and known and unknown risks and uncertainties can affectthe accuracy of forward-looking statements. Factors that could affectTargeted Genetics' actual results include, but are not limited to, therisk that the offering is not consummated, the possibility thatTargeted Genetics decides to use the proceeds from the offering forpurposes other than those described above, as well as other riskfactors described in the section entitled "Factors Affecting OurOperating Results, Our Business and Our Stock Price" in TargetedGenetics' quarterly report on Form 10-Q for the quarter endedSeptember 30, 2005. You should not rely unduly on theseforward-looking statements, which apply only as of the date of thisrelease. Targeted Genetics undertakes no duty to publicly announce orreport revisions to these statements as new information becomesavailable that may change its expectations.