San Diego, CA - Jan. 13, 2004 -TargeGen, Inc., a biopharmaceutical company focusing on treatments for cardiovascular (ischemic) diseases and cancer, announces the successful closing of the Company's second round of financing.

The current financing round was co-lead by incoming new investors William Blair Capital Partners (Chicago) and CDP Capital Technology Ventures (Montreal). Existing TargeGen investors making significant new contributions to the current round include Forward Ventures (San Diego) and Enterprise Partners (La Jolla) with additional participation by China Development Industrial Bank and other investors.

In conjunction with the closing of this round, TargeGen announces the appointments of Dr. Arda Minocherhomjee (WBCP) and Mr. Richard Meadows (CDP Capital) to the Company's Board of Directors. "We are impressed with the breadth and commercial potential of TargeGen's technology platform, the efficiency with which significant results have been achieved thus far and the quality of scientific talent and management associated with TargeGen", stated Dr. Minocherhomjee of William Blair Capital Partners. "TargeGen's unique technology platform in conjunction with the quality and depth of both its scientific, as well as management teams, epitomizes the type of high caliber company CDP Capital is seeking to invest in, in Southern California", asserted Mr. Meadows.

"The current financing climate poses significant challenges for early stage biopharmaceutical companies. We are very pleased and gratified to be able to attract this caliber of new investor interest and to receive the continued support of our existing investors in a fully subscribed 'up' round of financing", stated Peter G. Ulrich, CEO and co-founder of TargeGen. "This financing is expected to allow us to take our first two drug leads into human clinical trials and accelerate our other discovery and development programs."

About TargeGen, Inc.

TargeGen, Inc. is a privately held, vascular biology-focused, biopharmaceutical company based in San Diego, CA. TargeGen is developing novel small molecule therapeutics to treat cancer and ischemic diseases (heart attack, stroke) by targeting certain biochemical processes associated with disease related changes in vascular permeability and vascular proliferation.

William Blair Capital Partners

Since 1982, William Blair Capital Partners ("WBCP") has invested over $800 million in approximately 150 companies throughout the United States. WBCP has invested in companies across a variety of industries. WBCP provides venture capital for early-stage companies, growth equity for fast growing companies and leveraged equity for later-stage recapitalizations and management buyouts. WBCP actively invests in companies in business and consumer services, health care, industrial growth and technology. The WBCP team has over 100 collective years of private equity investing experience. WBCP is the private equity group of William Blair & Company, L.L.C., a leading investment bank in Chicago. WBCP is currently investing out of its seventh fund, a $400 million private equity limited partnership. For additional information visit: www.wbcapitalpartners.com.

About CDP Capital - Technology Ventures CDP Capital - Technology Ventures, a member of CDP Capital, invests in innovative companies with promising leading-edge technologies. It also develops partnerships with venture capital funds in Canada, the United States and Europe. Through its portfolios I and II, CDP Capital - Technology Ventures has invested, in 2002, in about 53 companies and investment funds in biotechnology and life sciences, information technologies and energy technologies. The market value of the total assets under management by CDP Capital - Technology Ventures is almost CA$1 billion (US$0.63 billion). For more information: www.cdpcapital.com/technologyventures.

For additional information, contact:

Peter G. Ulrich, President & CEO
TargeGen, Inc.
9393 Towne Centre Drive
Suite 120
San Diego, CA 92121
Tel 858-678-0760
Fax 858-678-0762
ulrich@targegen.com
http://www.targegen.com