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Targeted Genetics Reports Inflammatory Arthritis Clinical Data at,European Rheumatology Conference

BARCELONA, SPAIN and SEATTLE, WA -- (MARKET WIRE) -- June 14, 2007 -- Targeted Genetics Corporation (NASDAQ: TGEN) today is reporting data from the dose escalation arm of the ongoing Phase I/II clinical study of tgAAC94 in patients with inflammatory arthritis. Philip J. Mease, M.D., clinical professor at the University of Washington School of Medicine, chief of rheumatology clinical research at the Swedish Medical Center, practicing physician with Seattle Rheumatology Associates and the lead investigator on the trial is presenting the data in a poster session today at the Annual European Congress of Rheumatology EULAR 2007 in Barcelona, Spain (Abstract THU0185). These data also were reported earlier this month at the 10th Annual Meeting of the American Society of Gene Therapy.

Interim aggregate data on the primary and secondary end-points were presented from the first 61 subjects in the dose escalation portion (cohorts 1 to 3) of the Phase I/II clinical trial of tgAAC94 in patients with inflammatory arthritis. Completion of enrollment and initial dosing of all subjects in the second segment (cohorts 4 to 6) of this trial was announced recently. tgAAC94 is an investigational therapeutic designed to inhibit the activity of tumor necrosis factor-alpha (TNF-alpha), a key mediator of inflammation. The Phase I/II study is designed to assess the safety and potential effect of different doses of tgAAC94 administered directly to affected joints of subjects with inflammatory arthritis with or without concurrent use of systemic TNF antagonist therapies.

"Despite progress in recent years in treating inflammatory arthritis, many patients have disease that remains refractory to current therapy including systemic TNF antagonists," said Dr. Mease. "These data suggest that tgAAC94 may provide clinical benefit to these patients, even in those who are being treated with TNF antagonists. Confirmation of these data in
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