Targacept Announces Pricing of Common Stock Offering

WINSTON-SALEM, N.C.--(Business Wire)--
Targacept, Inc. (NASDAQ: TRGT) announced today that the recently announced
underwritten public offering of 2,200,000 shares of its common stock has been
priced at a price to the public of $21.00 per share. As previously announced,
Deutsche Bank Securities will act as sole manager for the offering and Targacept
has granted Deutsche Bank Securities an option to purchase an additional 320,000
shares of common stock to cover over-allotments, if any.

The offering is being made pursuant to an effective shelf registration statement
that Targacept previously filed with the Securities and Exchange Commission.
This press release does not and shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these securities
in any state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities laws of
any such state or jurisdiction. This offering is being made pursuant to a
prospectus supplement included as part of the registration statement. Copies of
the prospectus supplement relating to this offering, when available, may be
obtained by contacting Deutsche Bank Securities Inc., Deutsche Bank Securities,
Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City,
New Jersey 07311-3988, telephone: 1-800-503-4611. Targacept expects the offering
to close on October 13, 2009, subject to satisfaction of customary closing
conditions.

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, 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.

NNR Therapeutics is a trademark of Targacept, Inc.

Targacept, Inc.
Alan Musso, 336-480-2186
VP and CFO
Email: alan.musso@targacept.com
or
Linnden Communications
Michelle Linn, 508-362-3087
Email: linnmich@comcast.com

Copyright Business Wire 2009