TARGETED GENETICS ANNOUNCES $19.5

GENETICS ANNOUNCES $19.5 MILLION PRIVATE PLACEMENT OF COMMON STOCK

WA, Jun 22, 2007 (MARKET WIRE via COMTEX News Network) -- Targeted Genetics

Corporation (NASDAQ: TGEN) today announced that it has entered into definitive

agreements with institutional and other accredited investors with respect to

private placement of 6.7 million shares of its common stock at a purchase price

of $2.905 per share for expected gross proceeds of approximately $19.5 million,

before payment of placement agent commissions and offering expenses. Investors

also will receive warrants to purchase 6.7 million shares of common stock at

exercise price of $3.25 per share. Rodman & Renshaw, LLC served as the

placement agent for this transaction. The closing of the offering is subject

customary closing conditions, including approval of an additional listing

application by the NASDAQ Stock Market.

pleased to announce a significant financing with institutional investors,"

H. Stewart Parker, president and chief executive officer. "We believe that

the net proceeds from this private placement, we can maintain our current

planned development activities and achieve significant progress in the

accomplishment of our clinical milestones."

Genetics estimates that net proceeds from the financing will be approximately

$17.8 million after deducting the estimated costs associated with the

transaction. Targeted Genetics plans to use the net proceeds of this financing

for working capital.

securities offered in this placement have not been registered under the

Securities Act of 1933, as amended, or state securities laws, and cannot be

offered or sold in the United States absent registration with the Securities

Exchange Commission (SEC) or an applicable exemption from the registration

requirements. As part of the transaction, Targeted Genetics has agreed to file

registration statement with the SEC covering the resale of the shares of common

stock to be issued in the offering, including the shares of common stock

issuable upon exercise of the warrants. This news release is neither an offer

sell nor a solicitation of an offer to buy any of the securities discussed

Genetics Corporation is a biotechnology company committed to the development

innovative targeted molecular therapies for the prevention and treatment of

acquired and inherited diseases with significant unmet medical need. Targeted

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

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

decrease or silence gene function. Targeted Genetics' current product

development efforts target inflammatory arthritis, AIDS prophylaxis, congestive

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

visit Targeted Genetics' website at www.targetedgenetics.com.

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

release contains forward-looking statements regarding whether the offering

close, the amount of proceeds expected to be received from the offering, the

expected timing of the closing of the offering, Targeted Genetics' expected

of these proceeds 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 our actual results include, but are not limited to, the risk

that the offering is not consummated, the possibility that Targeted Genetics

decides to use the proceeds from the financing for purposes other than those

described above, as well as other risk factors described in "Part I, Item 1A.

Risk Factors" in our most recent annual report on Form 10-K or "Part II, Item

1A. Risk Factors" in our most recent quarterly report on Form 10-Q filed with

the Securities and Exchange Commission. You should not rely unduly on these

forward-looking statements, which apply only as of the date of this release.

undertake no duty to publicly announce or report revisions to these statements

as new information becomes available that may change our expectations.