Exhibit 99.1

                           [LOGO OF TARGETED GENETICS]

CONTACT:

Targeted Genetics Corporation
Courtney Self
(206) 521-7392

              TARGETED GENETICS REDUCES LONG-TERM CASH OBLIGATIONS
                     THROUGH CONVERSION OF DEBT INTO EQUITY

SEATTLE, WA -- September 30, 2003 -- Targeted Genetics announced today that it
has converted all of its outstanding convertible debt into equity under a
collaborative agreement established in 1999 with Elan Corporation, plc and its
affiliates (Elan). Targeted Genetics converted approximately $9.4 million in
outstanding loans and interest payable to Elan into approximately 5.2 million
shares of restricted and unregistered common stock.

This conversion consists of $2.0 million in debt, borrowed at various dates,
into 1.6 million shares of common stock at conversion prices determined at the
time of borrowing, and $7.4 million in debt being converted into 3.5 million
shares of common stock at a price of $2.09 per share, the 60-day trading average
preceding the conversion date. The conversion of this debt was completed under
the terms of a convertible promissory note. The promissory note and interest
payable to Elan had a scheduled maturity in July 2005, unless converted earlier
by Targeted Genetics or Elan.

"The conversion of this debt obligation into equity significantly improves our
financial position, and acting on this now avoids the accrual of an additional
$2.3 million in interest charges that would have accumulated through maturity,"
said Todd E. Simpson, chief financial officer of Targeted Genetics. "Eliminating
this $11.7 million cash debt service requirement is part of our longer-term
funding strategy, and allows us to continue to focus our cash resources on the
advancement of our cystic fibrosis, AIDS vaccine and arthritis programs."

The Company borrowed funds under a promissory note from Elan in connection with
a research and development joint venture between Targeted Genetics and Elan,
called Emerald Gene Systems, which was formed in July 1999. Emerald Gene Systems
was focused on the development of additional applications of Targeted Genetics'
non-viral gene delivery capabilities and specifically on pursuing Targeted
Genetics' lipid-based gene delivery program targeting metastatic cancer
treatment indications. The initial three-year development period for Emerald
concluded in August 2002 and no further development activities have been
pursued.

Generally Elan requires the consent of Targeted Genetics prior to assignment or
transfer of this common stock and other securities of Targeted Genetics held by
Elan. As a result of this conversion, Elan currently holds a total of
approximately 7.7 million shares of Targeted Genetics common stock, representing
11.7 percent of Targeted Genetics' issued and outstanding common stock. Elan
also holds 12,015 shares of Targeted Genetics'



Series B convertible preferred stock that is currently convertible into
approximately 4.8 million shares of common stock. If Elan's ownership equals or
exceeds 10 percent of Targeted Genetics' common stock, Elan has the right to
nominate one director, who must be acceptable to Targeted Genetics, for election
to Targeted Genetics' board of directors.

Targeted Genetics had $24.8 million in cash as of June 30, 2003, and in August
of this year, received $4.8 million through the issuance of common stock to
Biogen, Inc. Targeted Genetics develops gene therapy products for treating
acquired and inherited diseases. Targeted Genetics has a lead clinical product
development program targeting cystic fibrosis and a promising pipeline of
product candidates focused on arthritis, an AIDS vaccine, hemophilia and cancer.
Targeted Genetics has a broad platform of gene delivery technologies as well as
a promising body of technology for cellular therapy. For more information about
Targeted Genetics Corporation, please visit its web site at
http://www.targetedgenetics.com.

NOTE: This release contains forward-looking statements regarding our financial
condition and financial strategy , which are based on opinions and estimates of
our management at the time the statements are made and are subject to risks and
uncertainties that could cause actual results to differ materially from those
expected or implied by these forward-looking statements. Inaccurate assumptions
and known and unknown risks and uncertainties can affect the accuracy of these
forward-looking statements. Factors that could affect our actual results
include, but are not limited to, changes in our financing plan, changes in our
business, as well as the other risk factors described in the section entitled
"Factors Affecting Our Operating Results, Our Business and Our Stock Price"
included in our report on Form 10-Q for the quarter ended June 30, 2003. You
should not rely unduly on these forward-looking statements, which apply only as
of the date of this release. We undertake no obligation to reflect new
information, circumstances or events after the date of this release or to
reflect the occurrence of unanticipated events.

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