Transgenomic Reports Fiscal Year 2011 Financial Results Annual Revenues Increase 59% Year-over-Year; Company Records Net Profit for Fourth Quarter; Conference Call to Be Held at 11:30 AM Eastern Time Omaha, Neb. (

Transgenomic Reports Fiscal Year 2011

Annual Revenues Increase 59% Year-over-Year;

Company Records Net Profit for Fourth

Conference Call to Be Held at 11:30 AM Eastern Time

Omaha, Neb. (March 7, 2012) -

Transgenomic, Inc. (OTC/BB: TBIO) today reported financial results for the year ended December 31, 2011 and provided a business

"Transgenomic enjoyed a landmark

year in 2011, with revenue growth quarter-over-quarter and year-over-year as well as an attention to expense management translating

into positive modified EBITDA for both the fourth quarter and full year 2011 periods," said Craig Tuttle, President and Chief

Executive Officer. "Our year-over-year top line increase of 59%, to $32 million in revenue for 2011, reflects growth in both

our clinical reference labs and pharmacogenomics lab businesses. These encouraging top- and bottom-line results were achieved without

compromising our investment in the development of groundbreaking new technologies. Supporting our strategic direction, and adding

substantially to shareholder equity, was a $22 million private placement financing executed last month with a number of top-tier

life sciences investors."

Mr. Tuttle continued: "2012 promises

to be yet another important year for growth and value creation, as we look to build momentum behind our recently launched products,

including our proprietary clopidogrel response panel, expand on our growing position as a key partner in cancer research and develop

the markets where our products and services are available. As always, we will continue to focus on the successful integration of

new products and technologies and expansion into new markets, all while managing toward the bottom line."

Recent Corporate and Business

Fourth Quarter and Fiscal Year

Total revenue for the fourth quarter

2011 was $8.6 million, an increase of 68 percent compared with $5.1 million for the same period of 2010. Revenues for the fourth

quarter of 2011 included $4.6 million in sales related to the Clinical Labs business, $0.5 million in revenue related to the Pharmacogenomics

Services Unit ("Pharma" which supports Clinical Trials) and $3.5 million in revenue related to the Diagnostic Tools

For the year ended December 31, 2011,

revenues were $32.0 million, an increase of 59 percent compared with $20.0 million for the same period of 2010. This included $16.0

million in net sales related to the Clinical Labs, $2.3 million in Pharma revenues and $13.7 million in revenues related to the

Diagnostic Tools unit.

Gross profit was $5.3 million, or 62

percent of net sales during the fourth quarter of 2011, compared with gross profit of $2.4 million, or 47 percent of net sales

during the comparable period of 2010. Gross profit was $18.4 million, or 58 percent of net sales for 2011, compared with gross

profit of $9.8 million, or 49 percent of net sales for 2010. The improvement in gross margin for the fourth quarter and full year

is attributable to improvement in our Lab Services and Pharmacogenomic margins. The improvement in our Lab Services is due to the

revenue from the FAMILION acquisition and successful consolidation of operations and reduction of overhead costs. Our Pharmacogenomics

margins have improved due to the revenue increase quarter-over-quarter and year-over-year as the costs in that segment are relatively

Operating expenses were $5.4 million

during the fourth quarter of 2011, compared to $3.7 million during the same period of 2010. Operating expenses increased primarily

due to the acquisition of the FAMILION business, including non-cash charges totaling $0.3 million related to the amortization of

the acquired intangibles. Operating expenses for the year ended December 31, 2011 were $21.4 million, compared with $13.4 million

for 2010. Operating expenses increased primarily due to the acquisition of the FAMILION business, including non-cash charges for

amortization related to the acquired intangibles of $1.2 million. We also recorded non-cash charges for stock option expenses of

$1.0 million and bad debt expense of $1.7 million.

Net income for the fourth quarter of

2011 was $0.3 million, or $0.00 per share, compared with a net loss of $0.8 million, or $0.02 per share, for the fourth quarter

of 2010. The Company reported a net loss for the year ended December 31, 2011 of $9.8 million, or $0.22 per share, compared with

a net loss of $3.1 million, or $0.06 per share, for 2010. The increase in net loss for 2011 compared to 2010 is attributable primarily

to interest expense of $1.0 million and non-cash charges for preferred stock valuation of $6.1 million, amortization related to

the acquired intangibles and stock option expenses.

Modified EBITDA, which is a non-GAAP

measure that Transgenomic views as an appropriate and sound measure of the Company's results, improved to a gain of $615,000 for

the fourth quarter of 2011 from a proforma loss of $1.4 million for the same period for 2010. For the year ended December 31, 2011,

Modified EBITDA was a gain of $195,000 as compared to a proforma loss of $6.3 million for the same period for 2010. A reconciliation

of Net Loss to Modified EBITDA is presented below.

Transgenomic management will host a

conference call to discuss 2011 financial results and answer questions beginning at 11:30 a.m. Eastern Time today. To access the

call via telephone, please dial 800-894-5910 from the U.S. and Canada or 785-424-1052 for international participants and enter

the 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. Investors can listen to a replay via telephone until 11:59 p.m. Eastern time on March

21, 2012 by dialing 800-727-1367 (domestic) or 402-220-2669 (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

Summary Financial Results

Proforma Modified EBITDA

(dollars in thousands)

Management uses Proforma Modified EBITDA,

a non-GAAP measure, to measure the Company's financial performance and to internally manage its businesses. Management believes

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

Proforma 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. Proforma Modified EBITDA calculations may vary from company to company.

Accordingly, our computation of Proforma Modified EBITDA may not be comparable with a similarly-titled measure of another company.

Included in our Proforma Modified EBITDA are the results of our acquisition of the Familion family of genetic tests for the

year ended December 31, 2010, reflecting the results of operations as if this product line was acquired on January 1, 2010.