Transgenomic Reports First Quarter 2012 Financial Results Conference Call to Be Held at 5:00 PM Eastern Time Omaha, Neb. (

Transgenomic Reports First Quarter 2012

Conference Call to Be Held at 5:00 PM

Omaha, Neb. (May 8, 2012) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the three months ended, March 31, 2012, and provided a business update.

progress in the first quarter validating and advancing several of our new high-value products, including the NuclearMitome Test,

ICE COLD-PCR in circulating tumor cells and PGxPredict :CLOPIDOGREL response panel," said Craig Tuttle, President and

Chief Executive Officer. "Our investment in these groundbreaking new products and technologies will fuel growth over the

long term and keep Transgenomic at the forefront of the pharmacogenomics and molecular diagnostics industry. Most notably, we continue

to build momentum in building awareness around our proprietary, two gene clopidogrel response panel, a test which represents

a potential multi-billion dollar market opportunity."

Mr. Tuttle added, "Supporting our

strategic initiatives was a $22 million private placement financing executed in the first quarter. Together with our focus on the

successful development of new products and technologies, and the expansion of our commercial products into new markets, we believe

Transgenomic has the strategy, balance sheet strength and operational infrastructure to achieve significant value creation."

Recent Corporate and Business Events

First Quarter Financial Results

the first quarter of 2012 were $7.2 million compared with $7.5 million for the same period in 2011. Gross profit was $3.1 million

or 43 percent of net sales, compared with gross profit of $4.2 million or 56 percent of net sales

for the same period in 2011.

The decrease in revenue is primarily due

to a software failure that temporarily resulted in reduced sample processing capacity at the Company's New Haven, Connecticut

laboratory testing facility. The Company believes that full sample processing capacity has been restored and expects to complete

the sample backlog caused by the LIMS failure by June 2012 in addition to processing the entire volume of samples received during

the second quarter. This revenue decrease was partially offset by an increase in instrument deliveries during the quarter.

Operating expenses were $5.5 million during

the first quarter of 2012, compared with $4.9 million in the prior year. The largest increase is the recognition of stock options

The net loss for the first quarter of 2012

was $2.7 million or $0.05 per share compared with a net loss of $2.8 million or $0.06 per share for the first quarter of 2011.

Modified EBITDA, which is a non-GAAP measure

that Transgenomic views as an appropriate and sound measure of the Company's results decreased to a $1.6 million loss for the first

quarter of 2012 from a $16,000 loss for the same period for 2011. The decrease is attributable to the reduction in sample processing

capacity as discussed above, as well as lower gross margin in our diagnostic tools business. A reconciliation of Net Loss to Modified

EBITDA is presented below.

Cash and cash equivalents were $19.2 million

as of March 31, 2012, compared with $4.9 million as of December 31, 2011.

management will host a conference call to discuss first quarter 2012 financial results and answer questions beginning at 5:00 p.m.

Eastern Time today. To access the call via telephone, please dial 800-862-9098 from the U.S. or Canada or 785-424-1051 for international

participants and enter conference ID TRANS. The call also will be broadcast

live over the Internet. To listen to the webcast, please log onto the Company's Investor Relations web page at http://www.transgenomic.com/events.asp?id=6

and follow the instructions. An archived webcast of the call will be available for 14 days. A telephone replay will be available

from 6:00 p.m. Eastern Time on May 8, 2012 through 11:59 p.m. Eastern Time on May 22, 2012 by dialing 800-723-8184 (domestic) or

402-220-2668 (international).

Inc. (www.transgenomic.com) is a global biotechnology

company advancing personalized medicine in cancer and inherited diseases through its proprietary molecular technologies and world-class

clinical and research services. The Company has three complementary business divisions: Transgenomic Pharmacogenomic Services is

a contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology drugs

in development. Transgenomic Clinical Laboratories specializes in molecular diagnostics for cardiology, neurology, mitochondrial

disorders, and oncology. Transgenomic Diagnostic Tools produces equipment, reagents, and other consumables that empower clinical

and research applications in molecular testing and cytogenetics. Transgenomic believes there is significant opportunity for continued

growth across all three businesses by leveraging their synergistic capabilities, technologies, and expertise. The Company actively

develops and acquires new technology and other intellectual property that strengthen its leadership in personalized medicine.

Forward-Looking Statements

Certain statements in this press release

constitute "forward-looking statements" of Transgenomic within the meaning of the Private Securities Litigation Reform

Act of 1995, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially

different from any future results, performance or achievements expressed or implied by such statements. Forward-looking statements

include, but are not limited to, those with respect to management's current views and estimates of future economic circumstances,

industry conditions, company performance and financial results, including the ability of the Company to grow its involvement in

the diagnostic products and services markets. The known risks, uncertainties and other factors affecting these forward-looking

statements are described from time to time in Transgenomic's filings with the Securities and Exchange Commission. Any change in

such factors, risks and uncertainties may cause the actual results, events and performance to differ materially from those referred

to in such statements. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained

in the Private Securities Litigation Reform Act of 1995 with respect to all statements contained in this press release. All information

in this press release is as of the date of the release and Transgenomic does not undertake any duty to update this information,

including any forward-looking statements, unless required by law.

TRANSGENOMIC, INC. AND SUBSIDIARY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

(Dollars in thousands except per share

See notes to unaudited condensed consolidated

financial statements.

Summary Financial Results

Proforma Modified EBITDA

(dollars in thousands)

Management uses Modified EBITDA, a non-GAAP

measure, to measure the Company's financial performance and to internally manage its businesses. Management believes that Modified

EBITDA provides useful information to investors as a measure of comparison with peer and other companies. Modified EBITDA should

not be considered an alternative to, or more meaningful than, net income or cash flow as determined in accordance with generally

accepted accounting principles. Modified EBITDA calculations may vary from company to company. Accordingly, our computation of

Modified EBITDA may not be comparable with a similarly-titled measure of another company.

The following sets forth the reconciliation

of Net Loss to Modified EBITDA for the periods indicated:

TRANSGENOMIC, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands except per share

See notes to unaudited condensed consolidated

financial statements.