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                                                                    Exhibit 99.1

                                     Contact:   James A. Johnson
                                                Alberta L. Garvin
                                                Targeted Genetics Corporation
                                                (206) 521-7824

PRESS RELEASE
                                                Lucy L. Morrison
                                                Feinstein Partners Inc.
                                                (617) 577-8110

                TARGETED GENETICS ADOPTS SHAREHOLDER RIGHTS PLAN

         SEATTLE -- Oct. 17, 1996 -- Targeted Genetics Corporation (Nasdaq:TGEN)
today announced that its Board of Directors has adopted a Shareholder Rights
Plan and declared a dividend distribution of one Preferred Share Purchase Right
on each outstanding share of Targeted Genetics' common stock.

         "The Rights are designed to ensure that all of Targeted Genetics'
shareholders receive fair and equal treatment in the event of any takeover of
the company," said H. Stewart Parker, Targeted Genetics' president and chief
executive officer. "This common step of instituting a Shareholder Rights Plan is
to protect the rights of our shareholders, and to guard against attempts to gain
control of the company without paying all shareholders the fair value of their
shares. We are not aware of any effort to acquire Targeted Genetics, but it is
prudent to be prepared."

         The Rights will not become exercisable, and will continue to trade with
the common stock, unless a person or group acquires 15 percent or more of
Targeted Genetics' common stock or announces a tender offer, the consummation of
which would result in ownership by a person or group of 15 percent or more of
the company's common stock. Each Right will entitle shareholders to buy
one-hundredth of a share of a new series of junior participating preferred stock
at an exercise price of $40.00.

         If a person or group acquires 15 percent or more of Targeted Genetics'
outstanding common stock, each Right will entitle its holder (other than the
acquiring person or group) to purchase, at the Right's then-current exercise
price, a number of Targeted Genetics' common shares having a market value of
twice that price. In addition, if Targeted Genetics is acquired in a merger or
other business combination transaction after a person has acquired 


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15 percent or more of Targeted Genetics' outstanding common stock, each Right
will entitle its holder to purchase, at the Right's then-current exercise price,
a number of the acquiring company's common shares having a market value of twice
that price.

         Following the acquisition by a person or group of 15 percent or more of
Targeted Genetics' common stock and prior to an acquisition of 50 percent or
more of the common stock, the Board of Directors may exchange the Rights (other
than Rights owned by such person or group), in whole or in part, for
consideration per Right consisting of one-half of the Common Stock that would be
issuable upon exercise of one Right. Alternatively, the Rights may be redeemed
for one cent per Right at the option of the Board of Directors prior to the
acquisition by a person or group of beneficial ownership of 15 percent or more
of Targeted Genetics' common stock.

         The non-taxable dividend distribution will be made on October 18, 1996,
payable to shareholders of record on that date. The Rights will expire on
October 18, 2006.

         Targeted Genetics Corporation develops gene and cell therapies for the
treatment of certain acquired and inherited diseases. The company has three lead
product development programs targeting cystic fibrosis, breast and ovarian
cancer, and HIV cell therapy, as well as an extensive technology platform.

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