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Investor and Media Contact:
Director, Communications
Targeted Genetics Corporation
TARGETED GENETICS COMPLETES $5.0 MILLION
PUBLIC OFFERING OF COMMON STOCK
WA March 14, 2006 Targeted Genetics Corporation (NASDAQ: TGEN) today announced that it
has completed a public offering of approximately 12.8 million shares of its common stock at a price
of $0.39 per share to institutional investors, for gross proceeds of approximately $5 million. The
shares were offered under the Company s shelf registration statement.
The Company began 2006 with $14.2 million in cash and cash equivalents. On January 24, 2006, the
Company restructured operations to reduce expenses and extend the current cash horizon, reducing
its estimated cash burn to a range of $13 to $16 million.
This financing, combined with the $9 million in funding expected from our current partners and
contracts, positions us for growth and success in 2006 and beyond, said H. Stewart Parker,
President and CEO of Targeted Genetics. We have intensified our focus on the clinical advance of
our inflammatory arthritis program and this financing will enable us to achieve a number of
important clinical and business development milestones in 2006.
Targeted Genetics Focus in 2006:
| To pursue aggressive development of our inflammatory arthritis program: We continue to be excited about early human data generated in the advancement of tgAAC94 as a therapy to treat inflammatory arthritis, and intend to focus our resources on further clinical advancement of this program. | |||
| To deliver on current partnered opportunities: Our product development collaborations focused on HIV/AIDS, congestive heart failure, and Huntington s disease continue to progress, and will generate important clinical and preclinical data in 2006. These collaborations serve to further validate the broad applicability of AAV in multiple disease settings, and provide important revenue to the company. They also allow us to monetize our earlier investment in AAV scale up, manufacturing, and product development. | |||
| To pursue additional product opportunities: We intend to seek additional product |
The Company plans to use the net proceeds of approximately $4.8 million for working capital and
other general corporate purposes. The Company directly placed the shares with institutional
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 and other acquired and inherited diseases with significant unmet medical
need. The Company uses its considerable knowledge and capabilities in the development and
manufacturing of gene delivery technologies to advance a diverse product development pipeline. The
Company s product development efforts target inflammatory arthritis, AIDS prophylaxis, congestive
heart failure, Huntington s disease and hyperlipidemia. To learn more about Targeted Genetics,
visit the Company s website at www.targetedgenetics.com.
Harbor Statement under the Private Securities Litigation Reform Act
This release contains forward-looking statements regarding Targeted Genetics expected use of these
proceeds, Targeted Genetics business strategy, Targeted Genetics product development and clinical
trials, Targeted Genetics liquidity, revenues from partners and contracts, and ability to meet its
ongoing financial obligations and other statements about Targeted Genetics 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 Targeted Genetics actual results include, but are not limited to, the risk that
Targeted Genetics revenues or expense do not meet its current expectations, that its clinical
trials and product development do not proceed as expected, the possibility that Targeted Genetics
decides to use the proceeds from the offering for purposes other than those described above, as
well as other risk factors described in the section entitled Factors Affecting Our Operating
Results, Our Business and Our Stock Price in Targeted Genetics quarterly report on Form 10-Q for
the quarter ended September 30, 2005. You should not rely unduly on these forward-looking
statements, which apply only as of the date of this release. Targeted Genetics undertakes no duty
to publicly announce or report revisions to these statements as new information becomes available
that may change its expectations.