Exhibit 99.1

                           (TARGETED GENETICS LOGO)(R)

INVESTOR AND MEDIA CONTACT:

Stacie D. Byars
Director, Communications
Targeted Genetics Corporation
(206) 521-7392

                   TARGETED GENETICS RESTRUCTURES BIOGEN DEBT

SEATTLE, WA -- September 1, 2005 -- Targeted Genetics Corporation (Nasdaq: TGEN)
announced that it has entered into an agreement with Biogen Idec, Inc. (Nasdaq:
BIIB) to restructure the repayment of debt that was due over the next year
totaling approximately $10.7 million. Under the amended Funding Agreement and
related promissory notes, Targeted Genetics paid $2.5 million of the outstanding
debt on September 1, 2005 and agreed to make additional payments of
approximately $3.1 million in August 2007 and $2.5 million in each of August
2008 and August 2009.

"The successful renegotiation of this debt with Biogen Idec provides us a more
manageable debt structure and is clearly an important component of our overall
long-term financing strategy," said H. Stewart Parker, President and Chief
Executive Officer. "We are managing our cash position carefully and continue to
look for ways to leverage value from our capabilities to build additional
financial resources."

As part of the restructuring agreement, Targeted Genetics has agreed to apply
one-third of certain up-front or milestone payments received from potential
corporate collaborations to repayment of the outstanding debt, first to the
payment of any accrued and unpaid interest on the principal being repaid, and
second to the payment of outstanding principal in reverse order of maturity. In
addition, Targeted Genetics granted Biogen Idec a right of co-sale in certain
equity financings approved by Targeted Genetics' board of directors before
November 30, 2005 and Biogen Idec agreed not to sell any of its shares of common
stock until the earlier of November 30, 2005 and the completion of such a sale.
Biogen Idec also agreed to enter into an additional lock-up agreement if
Targeted Genetics completes an equity financing before November 30, 2005.

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 and other acquired and
inherited diseases with significant unmet medical need. We use our considerable
knowledge and capabilities in the development and


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manufacturing of gene delivery technologies to advance a diverse product
development pipeline. Our product development efforts target inflammatory
arthritis, AIDS, congestive heart failure, Huntington's disease, and
hyperlipidemia. To learn more about Targeted Genetics, visit our 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 business
strategy, our product development, ability to raise capital or complete an
equity financing, our ability to meet our obligations under the funding
agreement and outstanding promissory notes and other statements about our plans,
objectives, intentions and expectations. In particular, the statements regarding
the Company's future plans are forward-looking statements. 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 timing, nature and results of our clinical trials, potential development of
alternative technologies or more effective products by competitors, 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 the section
entitled "Factors Affecting Our Operating Results, Our Business and Our Stock
Price" in our Quarterly Report on Form 10-Q for the period ended June 30, 2005.
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.

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