TGEND Targeted Genetics Corp

Targeted Genetics Corporation (Nasdaq:TGEND) reported new data from studies designed to enhance the company's ability to develop novel therapeutic products for the treatment of inflammatory arthritis. The data, presented in two abstracts at the American Society of Gene Therapy (ASGT) 2006 Annual Meeting, demonstrate that adeno-associated virus type 2 (AAV2), the delivery vector used in the company's clinical development candidate tgAAC94 supports sustained transgene expression for at least one year following a single intra-articular administration (abstract #983), and abstract #578 describes the potent anti-inflammatory activity achieved using an AAV vector based on an alternate serotype, AAV1. These studies provide important information that may be used to optimize the safety and efficacy of AAV-based therapeutic products for the treatment of inflammatory arthritis and, potentially, other diseases. "As reported this week at ASGT, we are seeing early but promising results in our Phase I/II trial of tgAAC94, our lead anti-inflammatory product candidate, administered directly to joints," said H. Stewart Parker, president and chief executive officer of Targeted Genetics. "Preclinical data also presented this week demonstrate that a single administration of AAV-TNFR:Fc results in expression of TNFR:Fc for more than a year. This suggests that tgAAC94 may require infrequent administration and thus enable patient-friendly dosing schedules." Ms. Parker further comments, "These studies are important because AAV-1 based vectors deliver genes into muscle cells very efficiently resulting in the muscle cells secreting proteins produced from those genes into the blood stream. Thus, intramuscular administration of AAV vectors may provide a new paradigm for systemic therapy for inflammatory arthritis and other chronic diseases that are currently treated with therapeutic protein products. This approach complements our efforts to develop tgAAC94 as a locally administered anti-inflammatory therapy and also opens the door to developing a number of next-generation versions of currently approved protein therapies." About tgAAC94 tgAAC94 is being developed as a potential supplement to systemic anti-TNF-alpha protein therapy for use in patients with inflammatory arthritis who have one or more joints that do not respond to systemic protein therapy. The product candidate uses Targeted Genetics' recombinant AAV (rAAV) vector technology to deliver a DNA sequence that encodes a soluble form of the TNF-alpha receptor (TNFR:Fc). Soluble TNFR inhibits the immune stimulating activity of TNF-alpha. Direct injection of tgAAC94 into affected joints leads to the localized production of soluble TNFR within joint cells, reducing the activity of TNF-alpha within the joint and, potentially, leading to a decrease in the signs and symptoms of inflammatory disease and inhibition of joint destruction. The Company's rAAV technology platform is used to deliver genes and is based on AAV, a naturally occurring virus that has not been associated with any disease in humans. 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, HIV/AIDS and other acquired and inherited diseases with significant unmet medical need. Targeted Genetics uses its considerable knowledge and capabilities in the development and manufacturing of gene delivery technologies to advance a diverse product development pipeline. Its product development efforts target inflammatory arthritis, HIV/AIDS, congestive heart failure, Huntington's disease, and hyperlipidemia. To learn more 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 potential development platforms, our ability to commercialize any of our products in clinical trials, including tgAAC94, our ability to produce our products at large scale commercial production and other statements about our 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, 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 recruit and enroll suitable trial participants, our ability to obtain and maintain regulatory or institutional approvals, our ability to obtain, maintain and protect our intellectual property and our ability to raise capital when needed, as well as other risk factors described in Item 1A. Risk Factors in our report on Form 10-K for the year ended December 31, 2005 and updated in Item 1A. Risk Factors in our Form 10-Q for the quarter ended March 31, 2006. 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.