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Targacept Announces Closing of Over-allotment Option

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^{Published in Health and Fitness on Friday, June 10th 2011 at 8:15 GMT by Market Wire}  

WINSTON-SALEM, N.C.--([ BUSINESS WIRE ])--Targacept, Inc. (NASDAQ: TRGT) announced today the completion of the sale of an additional 548,780 shares of its common stock upon the exercise in full of the over-allotment option granted to the underwriters of its previously-announced public offering. The net proceeds to Targacept from the sale of these additional shares, after deducting underwriting discounts and commissions and estimated offering expenses, are approximately $10.6 million, resulting in total net proceeds of the public offering to Targacept of approximately $80.8 million.

Deutsche Bank Securities Inc. acted as sole book-running manager for the offering. Lazard Capital Markets LLC, Leerink Swann LLC, Oppenheimer & Co. Inc., Needham & Company, LLC, Ladenburg Thalmann & Co. Inc. and Global Hunter Securities LLC acted as co-managers for the offering.

The offering was made by Targacept pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission (SEC). Copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from Deutsche Bank Securities Inc., Attn: Prospectus Department, 100 Plaza One, Floor 2, Jersey City, NJ 07311, Telephone number: (800) 503-4611, Email: [ prospectus.cpdg@db.com ].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or other jurisdiction.

About Targacept

Targacept is a biopharmaceutical company engaged in the design, discovery and development of NNR Therapeutics^TM for the treatment of diseases and disorders of the nervous system.