Transgenomic Reports First Quarter 2013 Financial Results Conference Call to Be Held Today at 5:00 PM Eastern Time Omaha, Neb. (

Transgenomic Reports First Quarter 2013

Conference Call to Be Held Today at

5:00 PM Eastern Time

Omaha, Neb. (May 8, 2013) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the first quarter ended March 31, 2013 and provided a business update.

First Quarter Financial Results

Net sales for the first quarter of 2013

increased by $0.2 million, or 2%, to $7.4 million compared to $7.2 million for the same period in 2012. The increase from last

year's first quarter was principally driven by an 11% increase in the Laboratory Services unit, reflecting higher test volumes

from our Nuclear Mitome, ScoliScoreTM and C-GAAP diagnostic tests, as well as a modest shift toward higher priced tests.

This increase was partially offset by lower sales of instruments in the Diagnostic Tools segment.

Gross profit was $3.7 million or 50 percent

of net sales, compared with gross profit of $3.1 million or 43 percent of net sales for the same period in 2012. The increase in

gross profit was largely attributable to improved margins on our Nuclear Mitome test, due to a change in vendors, in our Laboratory

Services segment, and a favorable shift to higher margin instruments sold in Diagnostic Tools.

Operating expenses were $7.5 million during

the first quarter of 2013, compared with $5.5 million in the prior year. The increase was due to higher costs related to expansion

of our field sales force to support the sales of C-GAAP and ScoliScore and a higher bad debt provision.

The net loss for the first quarter of 2013

was $3.6 million or $0.04 per share compared to a loss of $2.7 million, or $0.05 per share for the first quarter of 2012.

Modified EBITDA, which is a non-GAAP measure

that Transgenomic views as an appropriate and sound measure of the Company's results was a $2.9 million loss for the first quarter

of 2013 compared to a $1.6 million loss for the same period for 2012. A reconciliation of Net Loss to Modified EBITDA is presented

Cash and cash equivalents were $7.7 million

as of March 31, 2013, compared with $4.5 million as of December 31, 2012.

"The top line growth in our core Laboratory

Services segment in the first quarter was fueled by our newer product offerings, which include our Nuclear Mitome, ScoliScoreTM

and C-GAAP tests," said Craig Tuttle, President and Chief Executive Officer. "As we progress throughout the year, it

remains our goal to increase revenues in both our Laboratory Services and Diagnostic Tools segments through the commercialization

of new products that have been acquired, in-licensed, or developed internally."

First Quarter and Recent Highlights

Transgenomic will host a conference call

to discuss first quarter 2013 financial results at 5:00 p.m. Eastern Time today. To access the call via telephone, please dial

866-952-1907 from the U.S. or Canada or 785-424-1826 for international participants and enter conference ID TRANS. The call will

also 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/calendar/2013/04/first-quarter-financial-results-conference-call-may-8-2013 and follow the

instructions. An archived webcast of the call will be available for 14 days. A telephone replay will be available from 8:00 p.m.

Eastern Time on May 8, 2013 through 11:59 p.m. Eastern Time on May 22, 2013 by dialing 800-839-1198 (domestic) or 402-220-0458

Transgenomic, Inc. (www.transgenomic.com)

is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases through its

proprietary molecular technologies and world-class clinical and research services. The Company is a global leader in cardiac genetic

testing with a family of innovative products, including its C-GAAP test, designed to detect gene mutations which indicate cardiac

disorders, or which can lead to serious adverse events. Transgenomic has three complementary business divisions: Transgenomic

Clinical Laboratories, which specializes in molecular diagnostics for cardiology, oncology, neurology, and mitochondrial disorders;

Transgenomic Pharmacogenomic Services, a contract research laboratory that specializes in supporting all phases of pre-clinical

and clinical trials for oncology drugs in development; and Transgenomic Diagnostic Tools, which 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 strengthens

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.

(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.