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

Transgenomic Reports Fourth Quarter and

Fiscal Year 2012 Financial Results

Conference Call to Be Held at 5:00 PM

Omaha, Neb. (March 13, 2013) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the fourth quarter and year ended December 31, 2012 and provided a

Fourth Quarter Financial Results

Net sales for the fourth quarter of 2012

were $7.3 million compared with $8.6 million for the same period in 2011. The decline was principally driven by lower revenues

in the Diagnostic Tools segment reflecting a decline in OEM instrument sales. Clinical Laboratories sales were modestly below a

strong prior year quarter. These declines were partially offset by strong revenue growth in the Pharmacogenomics Services segment.

Gross profit was $3.5 million or 49% of

net sales, compared with gross profit of $5.3 million or 62% of net sales for the same period in 2011. The decline was due to a

lower margin in the Diagnostic Tools segment as a result of shift in product mix. The Clinical Laboratories segment also had a

decline in its gross margin to 44% of net sales in 2012 from 59% of net sales in 2011, due to investments made to improve efficiency

and capacity in anticipation of volume growth.

Operating expenses were $6.8 million during

the fourth quarter of 2012, compared with $5.4 million in the prior year. The increase was due to higher costs related to expansion

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

The net loss for the fourth quarter of

2012 was $2.3 million, or $0.03 per share, compared to a net income of $0.3 million, or $0.00 per share, for the fourth quarter

Modified EBITDA, which is a non-GAAP measure

that Transgenomic views as an appropriate and sound measure of the Company's results was a $2.4 million loss for the fourth quarter

of 2012 compared to income of $615,000 for the same period for 2011. A reconciliation of Net Loss to Modified EBITDA is presented

Cash and cash equivalents were $4.5 million

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

2012 Full Year Financial Results

the twelve months ended December 31, 2012 were $31.5 million compared to $32.0 million for the same period in 2011. The Clinical

Laboratories segment had a 9% increase in sales, driven by sales of its recently launched NuclearMitome, C-GAAP and ScoliScore

tests. This increase was partially offset by a decline in the Pharmacogenomics Services segment, due to a lower volume of projects

performed for our pharmaceutical clients, and in our Diagnostic Tools segment, which had a higher percentage of its sales

go to our European distribution partner at distributor prices.

Gross profit was $15.0 million or 48% of

net sales, compared with gross profit of $18.4 million or 58% of net sales for the same period in 2011. The decline in gross profit

largely resulted from lower revenues at lower margins in our Diagnostic Tools business. Laboratory Services segment had lower gross

margins due to investments made to increase capacity in our laboratories in anticipation of higher volume from our newly launched

tests. In addition, lower sales in our Pharmacogenomics Services segment negatively impacted margins due to its relatively fixed

Operating expenses were $24.5 million for

the twelve months ended December 31, 2012, compared with $21.4 million in the prior year. Operating expenses increased primarily

due to costs related to the expansion of our field sales force to support new product launches. Also contributing to the increase

was a higher bad debt provision of $0.7 million.

The net loss for the twelve months ended

December 31, 2012 was $8.3 million or $0.13 per share compared to a net loss of $9.8 million or $0.22 per share during the comparable

period of 2011. The net loss in 2012 was reduced by $2.2 million fair value adjustment related to our common stock warrants which

decreased the net loss. The net loss in 2011 included $6.1 million in expense related to the revaluation of the preferred stock

warrants and conversion feature.

"Our activities in 2012, and particularly

in the fourth quarter, were aimed at preparing for resumed growth in 2013. These 2012 activities included: the launch of two new

proprietary products from our Clinical Labs, C-GAAP and ScoliScore ; a major expansion of our Clinical Lab Sales team to

drive growth from these new assays, the development of the assay kits for our distribution relationship with A. Menarini Diagnostics;

and the completion of new assays for our ICE COLD-PCR technology," said Craig Tuttle, President and Chief Executive Officer.

"Looking forward into 2013, we expect these activities will drive top line revenue growth, especially as we progress throughout

the year. We are looking for increasing revenue impact from our ScoliScore and C-GAAP assays, as well as from other new

tests in development that we expect to commercialize this year. We also expect to see a positive impact on revenue later in the

year from our A. Menarini distribution agreement. In addition, we anticipate announcements beginning at scientific conferences

starting mid-2013 from ongoing clinical research aimed at validating ICE COLD-PCR and its ultra-sensitive ability to detect genetic

mutations in blood."

Transgenomic management will host a conference

call to discuss 2012 financial results and answer questions beginning at 5:00 p.m. Eastern Time today. To access the call via telephone,

dial 866-952-1906 from the U.S. and Canada or 785-424-1825 for international participants and enter conference ID TRANS. A telephone

replay will be available from 6:00 p.m. Eastern Time on March 13, 2013 through 11:59 p.m. Eastern Time on March 27, 2013 by dialing

800-723-0520 (domestic) or 402-220-2653 (international).

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

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 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.