Targacept, Inc. To Report Second Quarter 2006 Financial Results On August 9, 2006

WINSTON-SALEM, N.C., Aug. 2 /PRNewswire-FirstCall/ -- Targacept, Inc. , today announced that the company will conduct a conference call and an audio webcast at 5:00 p.m. ET on Wednesday, August 9, 2006, following the after-market release of its unaudited financial results for the second quarter ended June 30, 2006. J. Donald deBethizy, Ph.D., President and Chief Executive Officer, and Alan A. Musso, Vice President and Chief Financial Officer, will host the call to discuss the company’s second quarter financial results and to provide an update on the company’s product development programs and business activities.

A live webcast of the conference call will be available on Targacept’s website at www.targacept.com. An archived version of the webcast will also be available on Targacept’s website for at least two weeks following the call.

The conference call may be accessed by dialing 866-700-7477 for domestic participants and 617-213-8840 for international callers (reference passcode 24521695). A replay of the conference call may be accessed through August 23, 2006 by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers (reference passcode 43487609).

About Targacept

Targacept is a biopharmaceutical company engaged in the design, discovery and development of a new class of drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors, or NNRs. NNRs are found on nerve cells throughout the nervous system and serve as key regulators of nervous system activity. Targacept’s product candidates are designed to selectively target specific NNR subtypes to promote therapeutic effects and limit adverse side effects. Targacept has a marketed product, Inversine(R) (mecamylamine hydrochloride), product candidates in development for Alzheimer’s disease and cognitive deficits in schizophrenia, pain and depression, and multiple preclinical programs. Targacept’s news releases are available on its website at www.targacept.com.

Targacept, Inc.

CONTACT: Alan Musso, VP and CFO of Targacept, Inc., +1-336-480-2186, oralan.musso@targacept.com; or Michelle Linn of Linnden Communications,+1-508-419-1555, or linnmich@comcast.net

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