Targeted Genetics receives delisting notification from NASDAQ Stock Market

Targeted Genetics Corporation (NASDAQ:TGEN) (the “Company”) today announced that it has received a written notice from the staff of The NASDAQ Stock Market (“NASDAQ”) informing the Company that trading of the Company’s common stock would be suspended prior to the open of business on Thursday, January 21, 2010, and that NASDAQ would initiate procedures to delist the Company’s common stock.

The Company had notified NASDAQ on January 13, 2010 of its decision not to pursue a reverse stock split as a means to regain compliance with the $1.00 share price required for continued listing under Listing Rule 5550(a)(2). The Company does not intend to appeal NASDAQ’s determination.

As previously announced, following the delisting of the Company’s common stock, the Company anticipates that its common stock will be quoted on the Pink Sheets, a centralized electronic quotation service for over-the-counter securities. However, the Company can give no assurance that trading in its stock will continue on the Pink Sheets or on any other securities exchange or quotation medium.