NEW YORK--(BUSINESS WIRE)--Oct. 15, 1998--Oscar Gruss & Son Incorporated initiates coverage of TARGETED GENETICS, Seattle, WA, with SPECULATIVE BUY rating (NASDAQ, TGEN, $1 1/16).

In a new report, Alan Tuchman, MD, equity analyst at Oscar Gruss, examines Targeted Genetics and the outlook for the company's innovative gene therapy products. Gene therapies hold the potential to treat diseases at their fundamental cellular and genetic origins. Target Genetics is a development stage company creating genetic intervention therapies for a number of genetic diseases, including Cystic Fibrosis. The company therapies will use virus vectors to insert genetic material into cells that are missing the necessary genetic material for proper function. Dr. Tuchman feels that the company's product for Cystic Fibrosis (CF) shows excellent promise in treating this lethal genetic disorder, and he expects results of Phase II clinical trials for the CF therapy in mid-October announcement. Dr. Tuchman feels that Targeted Genetics offers investors the opportunity to invest in an undervalued company that could emerge as a leader in gene therapies.

Alan Tuchman gives details regarding his recommendation for Targeted Genetics in a research report available from Oscar Gruss & Son Incorporated at (212) 514-2345.

Investment Ratings: STRONG BUY: expected total annual return of greater than 25% over the next 12-18 months; BUY: expected total annual return in the range of 15-25% over the next 12-18 months; SPECULATIVE BUY: stock for investors who can afford higher risks; expected total annual return of greater than 25% if anticipated contingencies materialize over the next 12 - 18 months with the potential for high return volatility, lower or negative total annual returns in this time period may be possible; HOLD: stock is fairly valued and may provide returns which approximate returns expected from the its peer group in the equity markets over the next 12-18 months, or perhaps less. Other factors considered in the Investment Ratings may include, but are not limited to, the company's risk profile, including earnings predictability, financial position, industry position, technology and product risks, management strengths, and other factors. The required annual return for a specific Investment Rating will be increased for stocks with greater financial, business, and/or earnings risk.

This report is based upon information which Oscar Gruss & Son Incorporated believes to be reliable. However, neither Oscar Gruss nor any individual acting on their behalf can guarantee the accuracy or completeness of its contents. It does not purport to contain a complete analysis of every material fact concerning any company, industry or security. It is assumed that the report will be read in conjunction with other available reports and data. Opinions expressed herein are subject to change without notice. No investor can assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. Oscar Gruss & Son and affiliates may have positions in securities which are referred to herein and may make purchases or sales thereof while this report is in circulation. This Firm or one of its affiliates may from time to time perform investment banking or other services for, or solicit investment banking or other business from a company mentioned in this report. Further information is available upon request. Foreign-currency-denominated securities are subject to fluctuations in currency exchange rates that could have a positive or adverse effect on an investor's return upon the conversion into local currency of dividends or interest received, or proceeds from the sale of such securities. In addition, the value of U.S. dollar-denominated ADRs and the value of U.S. dollar-denominated ordinary shares, or common shares, of foreign issuers can be influenced by fluctuations in currency exchange rates.

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