As previously announced, the Company was not in compliance with the NASDAQ Listing Rules which required that the Company evidence shareholders ™ equity of at least $2.5 million and a minimum closing bid price of $1.00 per share. On September 28, 2009, NASDAQ granted the Company ™s request to remain listed on the NASDAQ Capital Market, subject to regaining compliance with NASDAQ listing requirements by evidencing shareholders' equity of $2.5 million on or before January 19, 2010 and achieving a closing bid price of $1.00 or more for a minimum of 10 consecutive trading days on or before February 8, 2010, as well as maintaining compliance with all other requirements for continued listing on the NASDAQ Capital Market. In addition, the Company was obligated to inform the NASDAQ Hearings Panel if the Company elected not to pursue a reverse stock split as a means, if necessary, to enable the Company to regain compliance with the $1.00 share price requirement. While the Company achieved compliance with the shareholders ™ equity requirements as of September 30, 2009, it has not regained compliance with the minimum closing bid price requirement.

Currently, the Company has six full-time-equivalent employees. The Company plans to continue to reduce its personnel costs, including the shift to part time status of its CEO and CFO and part time utilization of a number of other professionals dependent on expertise needed by the Company for different matters. The Company estimates it finished 2009 with cash and cash equivalents of approximately $4.5 million.

During 2009 we generated significant cash resources and eliminated significant liabilities through a number of transactions while at the same time significantly reducing our expenses, said B.G. Susan Robinson, President and Chief Executive Officer of Targeted Genetics Corporation. We will continue these aggressive efforts to conserve resources and embrace opportunity with the goal of capturing the most value for our shareholders.

Source: Targeted Genetics Corporation