Transgenomic Reports First Quarter 2015 Financial Results Conference Call to Be Held at 5:00 PM Eastern Time Today Omaha, Neb. (

Transgenomic Reports First Quarter 2015

Conference Call to Be Held at 5:00 PM

Omaha, Neb. (May 14, 2015) - Transgenomic,

Inc. (NASDAQ: TBIO) today reported financial results for the first quarter ended March 31, 2015, and provided a business update.

First Quarter Financial Results

Net sales for the first quarter of 2015 were $6.5 million, a

4% increase as compared with $6.3 million for the same period in 2014. Excluding the impact of the divested Surveyor product line,

year-over-year net sales increased approximately 11%. First quarter 2015 Laboratory Services segment sales increased by $1.2 million,

or 32%, from the same period in 2014, reflecting higher sales of patient tests and increased sales of contract laboratory services.

In the Genetic Assays and Platforms segment, first quarter 2015 net sales decreased by $0.9 million, or 36%, as compared to the

same period in 2014, as a result of lower bioconsumables and fewer instrument sales.

Gross profit in the first quarter of 2015 was $3.0 million or

46% of net sales, compared with gross profit of $2.5 million, or 40% of net sales, for the same period in 2014. The improvement

in overall gross profit was primarily the result of higher patient test volumes in the company's Laboratory Services unit,

partially offset by lower revenues in the Genetic Assays and Platforms segment.

Operating expenses were $5.6 million in the first quarter of

2015, compared with $6.0 million in the prior year quarter. The $0.4 million decrease in operating expenses included lower personnel

costs and stock compensation costs in the first quarter of 2015 as compared to the first quarter of 2014, partially offset by a

higher bad debt provision.

The net loss for the first quarter of 2015 was $3.0 million

or $0.36 per share, compared with a net loss of $4.2 million or $0.60 per share for the first quarter of 2014. Modified EBITDA,

which is a non-GAAP measure that Transgenomic views as an appropriate and sound measure of the company's results, showed a loss

of $2.0 million in the first quarter of 2015, compared to a loss of $2.7 million for the same period in 2014. A reconciliation

of Net Loss to Modified EBITDA is presented below.

Cash and cash equivalents were $5.4 million at March 31, 2015,

compared with $1.6 million at December 31, 2014. As previously announced, during the first quarter of 2015 the company completed

financings that raised approximately $7.3 million in net proceeds. These proceeds are being used for working capital and other

general corporate purposes.

"The company made good progress in the first quarter in

strengthening our historical businesses while preparing for the imminent launch of our breakthrough technology: Multiplexed ICE-COLD

PCR ("MX-ICP")," said Paul Kinnon, President and Chief Executive Officer. "We achieved a double

digit percentage increase in overall net sales excluding the divested Surveyor product line, including a robust 32% increase in

the critical Laboratory Services segment. We also reduced expenses and improved our gross margins."

Mr. Kinnon continued, "At the same time, we have been

gearing up for the roll-out of MX-ICP, both by augmenting our internal resources and completing agreements with collaborators that

further strengthen customers' confidence in the utility and quality of the technology. Several weeks ago we announced the

availability of MX-ICP to customers of our Biomarker Identification services business, and today we are excited to announce that

we will be launching MX-ICP CLIA testing at ASCO at the end of the month in Chicago, well ahead of our stated plan. Additionally,

we expect to launch MX-ICP kits world-wide in mid June. These are major milestones for Transgenomic, and we believe they are evidence

of the fundamental shift in the company's focus and direction that we have been targeting."

Transgenomic management will host a conference call to discuss

first quarter 2015 financial results and answer questions beginning at 5:00 p.m. Eastern Time today. To access the call via telephone,

please dial 866-952-1906 from the U.S. or Canada or 785-424-1825 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 30 days. A telephone replay will be available from

8:00 p.m. Eastern Time on May 14, 2015 through 11:59 p.m. Eastern Time on May 28, 2015 by dialing 800-839-3735 (domestic) or 402-220-2977

Transgenomic, Inc. is

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

diagnostic technologies, such as its revolutionary ICE-COLD PCRTM and its unique genetic tests provided through its

Patient Testing business. The company also provides specialized 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 are designed to improve medical diagnoses and patient outcomes enabling the realization

of "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, expectations regarding new clients, projects and prospects, MX-ICP's ability

to accelerate the Company's growth and generate revenue, and the operation of our billing systems. 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

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)