Transgenomic Reports First Quarter 2014 Financial Results Conference Call to Be Held at 5:00 PM Eastern Time Today Omaha, Neb. (

Reports First Quarter 2014 Financial Results

Conference Call to Be Held at 5:00

PM Eastern Time Today

Omaha, Neb. (May 7, 2014) - Transgenomic, Inc. (OTC/BB:

TBIO) today reported financial results for the first quarter ended March 31, 2014, and provided a business update.

First Quarter Financial Results

Net sales for the first quarter of 2014 were $6.3 million compared

with $7.4 million for the same period in 2013. The year-to-year decline is mainly attributable to lower sales in the Laboratory

Services segment, which reflected a higher than usual level of sales in the first quarter of 2013 that resulted from working down

a backlog of Nuclear Mitome tests from the previous year. Net sales in our core Laboratory Services business, excluding Nuclear

Mitome tests, posted a double digit percentage increase over year-ago levels.

Importantly, on a sequential quarter basis, Laboratory Services

net sales increased by 30% in the first quarter of 2014 as compared to the fourth quarter of 2013. In the Genetic Assays and Platforms

segment, first quarter 2014 net sales declined as compared to the same period in 2013, as a result of fewer instrument sales in

Europe. These instruments are high priced purchases with a relatively long sales cycle, so quarterly fluctuations in sales levels

Gross profit was $2.5 million or 40% of net sales, compared

with gross profit of $3.3 million or 44% of net sales for the same period in 2013. Gross profit decreased approximately $0.8 million

as a result of the lower test volumes, related to the Nuclear Mitomes, in our Laboratory Services segment and fewer instrument

sales in the Genetic Assays and Platforms segment.

Operating expenses were $6.0 million during the first quarter

of 2014, compared with $7.1 million in the prior year. The decrease in operating expenses was primarily due to a lower bad debt

provision in the first quarter of 2014 as compared to the first quarter of 2013, and reductions in our Laboratory Services field

sales force, as we adopted our new channel strategy that relies on partners, rather than our in-house sales team, to market products

that have different customer call points than our core offerings.

In the first quarter of 2014, there was $50 thousand of non-cash

income related to warrant revaluation compared to $400 thousand of non-cash income in 2013. The income for each period resulted

from a lower value being assigned to the warrants as a result of, among other things, changes in the Company's stock price

during the respective quarters.

Income tax expense was $0.5 million for the first quarter of

2014 compared with $0.1 million for the first quarter of 2013. During the first quarter of 2014, the Company recorded income tax

expense and a deferred income tax liability related to tax amortization of goodwill.

The net loss for the first quarter of 2014 was $4.2 million

or $0.60 per share, compared with a net loss of $3.6 million or $0.54 per share for the first quarter of 2013.

Modified EBITDA, which is a non-GAAP measure that Transgenomic

views as an appropriate and sound measure of the Company's results, was a loss of $2.7 million for the first quarter of 2014, compared

to a $2.9 million loss for the same period in 2013. A reconciliation of Net Loss to Modified EBITDA is presented below.

Cash and cash equivalents were $1.7 million as of March 31,

2014, compared with $1.6 million as of December 31, 2013. As previously announced, during the first quarter of 2014 the Company

completed a financing that raised $7 million from affiliates of Third Security, LLC, a leading life sciences investment firm. The

net proceeds from this financing were used to pay down our revolving credit line, which can be redrawn by the Company, and for

working capital and other general corporate purposes.

Paul Kinnon, President and Chief Executive Officer of Transgenomic,

commented, "The first quarter included a number of developments that together are emblematic of our new strategic direction

focused on leveraging our strengths in genomic technology, testing and tools to advance personalized medicine. Most important was

the growth quarter over quarter in our core Laboratory services business, which provides sophisticated genetic testing and biomarker

development services to individuals and institutions. This is where we see the best prospects for substantial, sustained, profitable

growth in the near and mid-term, and this increase in sequential sales is an early but promising sign that our rebuilding efforts

Mr. Kinnon added, "We are heading into the remainder of

the year fortified with an infusion of new capital and with the heightened visibility that will be afforded by our return to the

NASDAQ Capital Market. We are aware that our strategic transition is still at an early stage and that excellence in implementation

will be key to our success. However, we are encouraged at the progress to date and excited about Transgenomic's many growth

opportunities, especially ICE COLD-PCRTM and its potential to improve patient outcomes."

Transgenomic management will host a conference call to discuss

first quarter 2014 financial results and answer questions beginning 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 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/investor-relations/quarterly-conference-calls and

follow the instructions. An archived webcast of the call will be available for 90 days. A telephone replay will be available from

8:00 p.m. Eastern Time on May 7, 2014 through 11:59 p.m. Eastern Time on May 21, 2014 by dialing 800-839-3020 (domestic) or 402-220-7234

is a global biotechnology company applying sophisticated diagnostic technologies and products, such as its revolutionary ICE COLD-PCRTM,

to advance personalized medicine in cardiology, oncology, and inherited diseases. The company offers a portfolio of unique genetic

tests through its Patient Testing services business, provides specialized genomic clinical and research services to biopharmaceutical

companies developing targeted therapies, and sells equipment, reagents and other consumables for applications in molecular testing

and cytogenetics. Transgenomic's diagnostic technologies and products are designed to improve medical diagnoses and patient

outcomes in measureable ways.

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

(1) Certain prior period amounts have been reclassified to conform

to current period presentation.

(2) Net loss per share and the number of shares used in the

per share calculations for all periods presented reflect the one-for-twelve reverse stock split which took effect on January 27,

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: