Company Profile For Targacept, Inc.

Targacept, Inc. is a biopharmaceutical company engaged in the design, discovery and development of neuronal nicotinic receptors (NNR) Therapeutics for the treatment of multiple diseases and disorders of the central nervous system. The Company has clinical-stage product candidates for target indications in three therapeutic areas, which includes cognitive impairment, depression and anxiety, and pain. It also has preclinical programs focused in smoking cessation, addiction, obesity, pain, Parkinson’s disease and inflammation. The Company has collaboration with AstraZeneca and an alliance with GlaxoSmithKline. The drug discovery activities utilize computer-based molecular design methodologies and biological data for a library of compounds developed and collected over more than 20 years. The technologies are referred to as Pentad. The Company use Pentad to design or optimize AZD3480 (TC-1734), TC-5619, TC-2216 and TC-6499.

BRIEF: For the six months ended 30 June 2009, Targacept, Inc.'s revenues decreased 5% to $9M. Net loss increased 14% to $14.3M. Revenues reflect a decrease in product sales and collaboration research & development sales. Higher loss also reflects a rise in research & development expenses, increased cost of product sales and a decrease in interest income. The Company is a biopharmaceutical company engaged in the design, discovery of NNR Therapeutics.