Item 8.01. Other Events

On May 14, 2009, Targeted Genetics Corporation announced that the staff of the Nasdaq Stock Market (the "Staff") has granted the Company an extension of the deadline to regain compliance with Nasdaq Listing Rule 5550(b), which requires companies listed on the Nasdaq Capital Market to maintain a minimum of $2,500,000 in shareholders' equity, $35,000,000 in market value of listed securities or $500,000 in net income from continuing operations. Under the terms of the extension, the Company must complete certain transactions on or before July 22, 2009 and demonstrate compliance with Listing Rule 5550(b) prior to its next periodic filing and upon its periodic filing for the quarter ending September 30, 2009.

The Company's ability to regain compliance with Listing Rule 5550(b) depends on the results of the Company's continuing negotiations with third parties. The Company can offer no assurance that it can complete these transactions before the deadline or that it can regain or maintain compliance even if these transactions are completed. If the Company does not meet the extension requirements or regain compliance with Listing Rule 5550(b) within the required time periods, the Nasdaq staff will provide written notification that the Company's securities will be delisted. The Company may appeal the Nasdaq staff's determination to a listing qualifications panel, but there can be no assurance that the Company would be successful if it were to appeal.

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