Piedmont Triad, N.C., biotech news/Targacept Awarded Grant from Michael J. Fox Foundation to Conduct Research in the Treatment of Side Effects of Parkinsons Disease Therapy

Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing a new class of drugs known as NNR Therapeutics ™, announced that it has been awarded a grant of over $600,000 from The Michael J. Fox Foundation for Parkinson's Research (MJFF). The grant, which was awarded as part of MJFF's Therapeutics Development Initiative for Spring 2009, is designed to fund preclinical research involving the use of compounds that modulate neuronal nicotinic receptors to address Levodopa-induced abnormal involuntary movements, known as dyskinesias. The terms of the grant provide for Targacept to receive the funds as the research is performed over an expected period of one year (see also Biopharmaceuticals).

Levodopa, or L-dopa, is a drug that is converted to dopamine in the brain and is commonly used to treat the motor symptoms associated with loss of dopaminergic nerve cells in patients suffering from Parkinson's disease. However, long-term L-dopa use frequently leads to disabling complications, including dyskinesias that can be as debilitating as Parkinson's disease itself.1

Kristen Jordan, Ph.D., Targacept's Director of Behavioral Pharmacology, will serve as Principal Investigator for the research.

"We are honored to receive this grant and inspired by MJFF's commitment to finding new solutions to meet the needs of patients with Parkinson's disease," said J. Donald deBethizy, Ph.D., Targacept's President and Chief Executive Officer.

About Targacept

Targacept is a clinical-stage biopharmaceutical company that discovers and develops NNR Therapeutics ™, a new class of drugs for the treatment of central nervous system diseases and disorders. Targacept's product candidates selectively modulate neuronal nicotinic receptors that serve as key regulators of the nervous system to promote therapeutic effects and limit adverse side effects. Targacept has clinical-stage product candidates in development for major depressive disorder and resistant hypertension, attention deficit/hyperactivity disorder, Alzheimer's disease and cognitive dysfunction in schizophrenia, as well as multiple preclinical programs. Targacept also has a cognition-focused collaboration with AstraZeneca and a strategic alliance with GlaxoSmithKline. Targacept's news releases are available on its website at www.targacept.com.

About The Michael J. Fox Foundation

The Michael J. Fox Foundation is dedicated to finding a cure for Parkinson's disease through an aggressively funded research agenda and to ensuring the development of improved therapies for those living with Parkinson's today. To date, the Foundation has funded $149 million in research. For more information on TDI and the Foundation's industry strategy, please visit www.michaeljfox.org/industry.

Forward-Looking Statements

Statements in this press release that are not purely historical in nature constitute "forward-looking statements" made under the provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding the period over which Targacept will conduct the grant-funded research or Targacept's plans, expectations or future operations, financial position, revenues, costs or expenses. Actual results may differ materially from those expressed or implied by forward-looking statements as a result of various important factors, including, without limitation, risks and uncertainties relating to Targacept's ability to conduct the grant-funded research and other risks and uncertainties described under the heading "Risk Factors" in Targacept's most recent Annual Report on Form 10-K and in other filings that it makes with the Securities and Exchange Commission. As a result of the risks and uncertainties, the results or e!

vents indicated by the forward-looking statements may not occur. Targacept cautions you not to place undue reliance on any forward-looking statement.

In addition, any forward-looking statement in this press release represents Targacept's views only as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Targacept disclaims any obligation to update any forward-looking statement, except as required by applicable law.

NNR Therapeutics ™ is a trademark of Targacept, Inc. Any other service marks, trademarks and trade names appearing in this press release are the properties of their respective owners.

Contacts:

Alan Musso, VP and CFO

Targacept, Inc.

Tel: (336) 480-2186

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Michelle Linn

Linnden Communications

Tel: (508) 362-3087

Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it