Investor and Media Contact: Stacie D. Byars WeissComm Partners for Targeted Genetics 415.946.1072 sdbyars@wcpglobal.com TARGETED GENETICS REPORTS FIRST QUARTER 2008 FINANCIAL RESULTS -- Conference Call Today at 10:30 a.m

GENETICS REPORTS FIRST QUARTER 2008 FINANCIAL RESULTS

Conference Call Today at 10:30 a.m. ET --

2008 - Targeted Genetics Corporation (NASDAQ: TGEN) today announced its

financial results for the first quarter ended March 31, 2008. The Company

hold a conference call with analysts and investors to discuss its financial

business results at 10:30 a.m. ET today.

first quarter of 2008, the Company reported a net loss of $3.4 million, or

per common share, compared to net loss of $3.8 million or $0.30 per common

for the first quarter of 2007. Per share results for 2007 reflect the issuance

of 2.2 million shares in January 2007 and 6.7 million shares in June

for the first quarter of 2008 was $2.5 million, compared to $1.7 million

same quarter in 2007. Revenue for the first quarter 2008 consists primarily

research and development revenue earned under the Company's NIAID-funded

subcontract to develop adeno-associated viral (AAV)-based HIV/AIDS vaccines

under the Company's heart failure collaboration with Celladon

and development expenses for the first quarter of 2008 were $3.9 million

compared to $3.7 million in the first quarter of 2007. The higher first quarter

2008 research and development expenses reflect higher outside services costs

the Company's NIAID-funded subcontract. This increase was partially offset by

lower clinical trial costs for the inflammatory arthritis program as it is

reaching the end of a Phase I/II clinical trial.

and administrative expenses for the first quarter of 2008 were $1.9 million

compared to $1.6 million for the first quarter of 2007. The increase was

primarily related to higher patent prosecution and issuance activities.

Company's cash balance was $12.9 million at March 31, 2008, as compared to $16.4

million at December 31, 2007.

an exciting quarter for us and our academic collaborators, with two key data

publications that further fleshed out the potential of gene therapy and of

interference technology in diseases with no currently available treatments.

Robin Ali's team at University College of London showed proof of concept in a

rare eye disease using AAV delivery of a gene sequence that improved visual

function in one patient, and Dr. Beverly Davidson's team at University of Iowa

developed a generally applicable approach to addressing the toxicity problem

common to delivery of small interfering RNA to the brain, which is a nice

forward in researching this treatment method in Huntington's disease," said H.

Stewart Parker, president and chief executive officer of Targeted Genetics.

are working closely with both of these scientific teams to move their research

programs forward, and anticipate announcing data from our own Phase 1/2 trial

tgAAC94 for the treatment of inflammatory arthritis at several conferences

Quarter 2008 Highlights

Call and Webcast Information

Company will host a conference call reviewing financial results, its product

development portfolio and other business developments today beginning at

a.m. Eastern Time / 7:30 a.m. Pacific Time. You may access the live webcast

the "Events" section found on the homepage of the Company's website at

www.targetedgenetics.com or via telephone at 800.257.7063 (domestic) or

303.262.2125 (international).

replay will be available for approximately 30 days at www.targetedgenetics.com;

telephone replay will be available following Wednesday's call at approximately

10:30 a.m. PT through 11:59 p.m. PT, Saturday, June 7, 2008, by calling

800.405.2236 (domestic) or 303.590.3000 (international); pass code

Genetics Corporation is a biotechnology company committed to the development

innovative targeted molecular therapies for the prevention and treatment

acquired and inherited diseases with significant unmet medical need. Targeted

Genetics' proprietary Adeno-Associated Virus (AAV) technology platform allows it

to deliver genes that encode proteins to increase gene function or RNAi to

decrease or silence gene function. Targeted Genetics' product development

efforts target inflammatory arthritis, AIDS prophylaxis, congestive heart

failure and Huntington's disease. To learn more about Targeted Genetics,

Targeted Genetics' website at www.targetedgenetics.com.

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

release contains forward-looking statements regarding the Company's

business strategy and product development, including statements regarding

data collected in the Company's product development programs and other

about the Company's 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

unknown risks and uncertainties can affect the accuracy of forward-looking

statements. Factors that could affect actual future events or results include,

but are not limited to, payments

anticipated by the Company under product development collaborations and

contracts, the Company's actual expenses,

Company's ability to raise capital when needed, the timing, nature and results

of the Company's clinical trials, potential development of alternative

technologies or more effective products by competitors, the Company's ability

obtain and maintain regulatory or institutional

approvals, the Company's ability to maintain its listing on the NASDAQ Capital

Market and the Company's ability to obtain, maintain and protect its

intellectual property, as well as other risk factors described in "Item 1A.

Factors" in the Company's most recent quarterly report on Form 10-Q for the

period ended March 31, 2008 to be filed with the SEC. You should not rely

on these forward-looking statements, which apply only as of the date of this

release. The Company undertakes no duty to publicly announce or report revisions

to these statements as new information becomes available that may change

Company's expectations.

GENETICS CORPORATION

thousands, except per share information)

GENETICS CORPORATION