San Diego, CA – January 5, 2007 - TargeGen, Inc., a biopharmaceutical company developing small molecule kinase inhibitor drugs, today announced that TG101348, an internally discovered, oral, potent, selective inhibitor of Jak2, has been designated as a lead drug for clinical development for the potential treatment of certain myeloprolifertive diseases believed to be caused by a specific mutation (V617F) of Jak2. These include the diseases polycythemia vera, essential thrombocythemia (ET) and myelofibrosis with myeloid metaplasia (MMM). Currently, there are no approved specific therapies for these life-threatening diseases, which are characterized by overproduction of mature functional blood cells. Over 90% of PV cases are believed to be caused by the Jak2V617F mutation, as are over 50% cases of MM and ET. In PV, the body overproduces red blood cells and this may result in hemorrhage, thrombotic events (stroke), enlargement of the spleen and other life-threatening complications. Myeloproliferative diseases affect an estimated 100,000 – 200,000 patients.

Pre-clinical studies conducted to date with TG101348 in conjunction with leading academic research laboratories have shown that the compound, orally administered, reduces mortality in a dose-dependant manner and selectively inhibits Jak2V61F expressing cells. Pending the successful outcome of further pre-clinical testing, TargeGen plans to submit an IND to FDA and initiate human clinical trials with TG101348 in early 2008. “There is an enormous unmet need for safe and effective specific therapies for PV and other myeloproliferative diseases. Based on our pre-clinical data, we are excited and optimistic that TG101348 has the potential to be among the first new drugs to offer a meaningful treatment option for this patient population” stated Peter G. Ulrich, President, CEO and Co-Founder of TargeGen.

In addition to the pre-clinical compound TG101348, TargeGen currently has two other internally discovered drugs in human clinical trials. These include TG100-115, which is being evaluated in heart attack patients, and TG100801, a topically applied (eye drop) potential therapy for macular degeneration and other eye diseases. TG100801 is currently in Phase I clinical trials.

About TargeGen, Inc.

TargeGen, Inc. is a privately held biopharmaceutical company based in San Diego, CA. Key investors include Forward Ventures, Enterprise Partners, Chicago Growth Partners/William Blair Capital Partners, Vantage Point Venture Partners/CDP Capital Technology Ventures, BB BIOTECH, Hambrecht & Quist Capital Mgmt, Pappas Ventures and other investors.

For additional information, contact:

Sue Gordon
TargeGen, Inc.
9380 Judicial Drive
San Diego, CA 92121
Tel 858-678-0760
Fax 858-678-0762
http://www.targegen.com