Investor and Media Contact: Stacie D. Byars Director, Communications Targeted Genetics 206.521.7392 TARGETED GENETICS REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS Seattle, WA

Investor and Media Contact:

Director, Communications

TARGETED GENETICS REPORTS FIRST QUARTER 2005 FINANCIAL RESULTS

Seattle, WA April 26, 2004 Targeted Genetics Corporation (NASDAQ: TGEN) today announced its

financial results for the first quarter of 2005. As previously announced, the Company will hold a

conference call with analysts at 10:00 AM EDT today. The call will be broadcast live and can be

accessed, along with replay information, at www.targetedgenetics.com.

For the first quarter of 2005, the Company reported a net loss of $4.7 million, or $0.05 per common

share, compared to a net loss of $4.9 million, or $0.07 per common share, for the first quarter of

2004. Revenue for the first quarter of 2005 was $2.0 million, compared to $1.3 million for the

same quarter in the prior year. Revenue in 2005 and 2004 consists primarily of development revenue

earned under the HIV/AIDS vaccine collaboration with the International AIDS Vaccine Initiative

We are focused on advancing our clinical programs as well as leveraging value from our development

infrastructure, and we have made significant progress on both already this year, said H. Stewart

Parker, president and chief executive officer of Targeted Genetics. Specifically, we continue to

accrue patients in our Phase I inflammatory arthritis trial with the goal of providing data

mid-year. In our HIV/AIDS vaccine program, we released preliminary data of the ongoing Phase I

trial in Europe demonstrating a well-tolerated safety profile and have extended this study to

include India. Pending regulatory approvals, we plan to further expand this trial to evaluate the

safety and immunogenicity of the vaccine after a second dose. We also completed our Phase II study

in cystic fibrosis, however were disappointed the data revealed that we did not meet the primary

endpoint and have discontinued the program. Finally, we entered into two important collaborations,

adding preclinical programs to our pipeline in congestive heart failure and Huntington s disease,

and are now moving these robust development programs forward.

Operating expenses were $6.6 million for the first quarter of 2005, compared to $6.2 million the

first quarter of 2004. Research and development expenses increased to $4.5 million for the three

months ended March 31, 2005, from $4.2 million for the same period of 2004. General and

expenses for the first quarter of 2005 were $1.9 million, compared to $1.8 million for the same

After adjustments were made due to the discontinuation of the cystic fibrosis program, and

including funding from the new collaborations this quarter, we reduced our operating cash

requirements for 2005 by approximately $2.5 million, or to a range of $20 to $22 million, said

Todd Simpson, Vice President Finance and Administration, Chief Financial Officer.

First quarter highlights include:

About Targeted Genetics

Targeted Genetics Corporation develops gene-based products for preventing and treating acquired and

inherited diseases. The Company has clinical product development programs, targeting AIDS

prophylaxis and inflammatory arthritis. The Company also has a promising pipeline of product

candidates focused on hyperlipidemia, congestive heart failure and Huntington s disease that are

being developed under collaboration agreements with others, and a broad platform of gene delivery

technologies for application in nucleic acid-based drug development. For more information 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 research programs, clinical trials,

our product development and our potential to leverage our development platforms and other

statements about our plans, objectives, intentions and expectations. In particular, the statements

regarding the Company s operating cash requirements, pipeline and potential application of research

to any future product candidates are forward-looking statements. 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, delay or failure in developing a product candidate, 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 related to any of our research or product

candidates, and our ability to raise capital when needed, as well as other risk factors described

in the section entitled Factors Affecting Our Operating Results, Our Business and Our Stock Price

in our Annual Report on Form 10-K for the year ended December 31, 2004. 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.

TARGETED GENETICS CORPORATION

(in thousands, except per share information)

TARGETED GENETICS CORPORATION