Targacept Scientists Make Multiple Presentations at Society for Neuroscience Supporting the Potential of NNR Therapeutics to Treat CNS Diseases and Disorders

Targacept, Inc. (NASDAQ: TRGT), a clinical-stage biopharmaceutical company developing a new class of drugs known as NNR Therapeutics (TM), today announced that its scientists recently made several presentations at the 38th annual meeting of the Society for Neuroscience (SFN).

“It is gratifying to see our research efforts continue to demonstrate the potential of NNR Therapeutics to represent a novel approach to treating many central nervous system diseases and disorders,” said J. Donald deBethizy, Ph.D., Targacept's President and Chief Executive Officer. “These research advancements exemplify the broad diversity of the NNR target and reinforce our leadership position in the field.”

The SFN meeting took place November 15-19, 2008 at the Walter E. Washington Convention Center in Washington, D.C. The presentations authored or co-authored by Targacept scientists describe preclinical research findings in a variety of areas, including:

• Studies conducted by researchers from Targacept and its strategic collaborator AstraZeneca mapping areas of the brain affected by AZD3480 (TC-1734), for which a Phase 2b clinical trial in mild to moderate Alzheimer’s disease was recently completed and which is currently being studied in a Phase 2b clinical trial in cognitive dysfunction in schizophrenia and an exploratory Phase 2 study in adults with attention deficit/hyperactivity disorder;
• Studies conducted by Targacept researchers, in collaboration with AstraZeneca, characterizing the regulation of high sensitivity (HS) and low sensitivity (LS) forms of the alpha4beta2 NNR subtype, which is believed to play a role in cognitive functions such as attention, learning and memory; and
• Studies conducted by Targacept researchers, both alone and in collaboration with researchers from the California Institute of Technology and the University of Colorado at Boulder, characterizing the role of the alpha6 NNR subtype in modulating dopamine release in the brain and the potential of alpha6 as a target for smoking cessation therapies.

The presentations will be available on the company’s website, www.targacept.com, in the Event Calendar section on the Newsroom page at least through the end of 2008.

In addition, a paper titled “TC-5214 (S-(+)-Mecamylamine): A Neuronal Nicotinic Receptor Modulator with Antidepressant Activity,” authored by Targacept scientists, was published in the Winter 2008 edition of the peer-reviewed journal CNS Neuroscience & Therapeutics. The paper outlines the compelling scientific rationale and support for treating depression and anxiety disorders by selectively modulating the activity of NNRs. TC-5214, a broad spectrum NNR antagonist, is currently in Phase 2b development by Targacept as an augmentation therapy for major depressive disorder (MDD).

It is well known that depressive symptoms can result from an overstimulation of NNRs and other receptors in the brain that are activated by the neurotransmitter acetylcholine. Accordingly, compounds capable of inhibiting the activity of these overstimulated receptors, known as antagonists, may be expected to have antidepressant effects. In a prior Phase 2 clinical trial conducted by Targacept, subjects with MDD whose treatment with citalopram was augmented with mecamylamine hydrochloride showed greater improvement on symptoms of depression than subjects who received continued citalopram treatment and placebo. TC-5214 is the S(+) enantiomer of mecamylamine hydrochloride and has exhibited an overall therapeutic profile superior to racemic mecamylamine hydrochloride in preclinical models of depression and anxiety.

About Targacept

Targacept is a clinical-stage biopharmaceutical company that discovers and develops NNR Therapeutics (TM), 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 product candidates in development for Alzheimer's disease, cognitive dysfunction in schizophrenia, pain and depression, 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 at www.targacept.com.

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 potential of particular NNR subtypes as therapeutic targets, the potential of TC-5214 or other NNR Therapeutics as treatments for various diseases and disorders 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, the 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 events 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 (TM) is a trademark of Targacept, Inc. Any other service marks, trademarks and trade names appearing in this press release are the property of their respective owners.