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

Transgenomic Reports Fourth Quarter and

Fiscal Year 2013 Financial Results

Conference Call to Be Held at 5:00 PM

Omaha, Neb. (March 12, 2014) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the fourth quarter and year ended December 31, 2013, and provided

Fourth Quarter Financial Results

Net sales for the fourth quarter of 2013

were $6.2 million compared with $7.3 million for the same period in 2012. The decline in 2013 is mainly attributable to decreased

volume in the Laboratory Services segment, principally in the Neurology business, and an unfavorable shift in mix, as a surplus

of higher-priced tests were reported in last year's fourth quarter following a production disruption. This decline was partially

offset by a significant increase in the Genetic Assays and Platforms segment, which resulted from an increase in unit sales of

instruments in the U.S. and in Europe.

Gross profit was $2.6 million or 41 percent

of net sales, compared with gross profit of $3.5 million or 49 percent of net sales for the same period in 2012. The decrease in

gross profit was mainly due to lower margins in our Laboratory Services segment, related to the lower test volumes.

Operating expenses were $6.2 million during

the fourth quarter of 2013, compared with $6.8 million in the prior year. The decrease in operating expenses was primarily due

to reductions in our Laboratory Services field sales force, as we adopted our new channel strategy with partners such as PDI.

In the fourth quarter of 2013, there was

a $0.3 million non-cash expense related to warrant revaluation compared to $1.2 million of income in the fourth quarter of 2012.

The expense resulted from a higher value being assigned to Company warrants as a result of a rise in the Company's stock

price in the fourth quarter of 2013, compared to a decline in the stock price in the fourth quarter of 2012.

The net loss for the fourth quarter of

2013 was $4.0 million, or $0.05 per share, compared with a net loss of $2.3 million, or $0.03 per share, for the fourth quarter

of 2012. The majority of the increase in net loss was due to the change in non-cash warrant revaluation.

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 $2.6 million for the fourth

quarter of 2013, compared to a $2.4 million loss for the same period for 2012. A reconciliation of net loss to modified EBITDA

Cash and cash equivalents were $1.6 million

as of December 31, 2013, compared with $4.5 million as of December 31, 2012. On March 6, 2014, the Company announced the completion

of a $7 million placement of convertible preferred stock with affiliates of Third Security, LLC, a life sciences investment firm

founded by R.J. Kirk. This funding, along with a debt restructuring that will defer approximately $1.5 million of debt service

payments from 2014 to 2015 provides capital that the Company will use to execute on its business plan in 2014.

2013 Full Year Financial Results

Net sales for the twelve months ended December

31, 2013 were $27.5 million, compared with $31.5 million in 2012. The decrease from 2012 was driven by reduced revenues in the

Laboratory Services segment reflecting lower test volumes, as described in the fourth quarter commentary, partially offset by higher

contract revenue associated with a collaboration agreement.

Gross profit for the full year 2013 was

$12.5 million, or 45 percent of net sales, compared with gross profit of $15.0 million, or 48 percent of net sales, in 2012. The

decrease in gross profit was largely attributable to lower margins in our Laboratory Services segment related to lower test volumes

and an unfavorable change in product mix.

Operating expenses were $28.3 million for

the twelve months ended December 31, 2013, compared with $24.5 million in the prior year. The increase was due to higher costs

related to our Laboratory Services field sales force in the first half of 2013 and a higher bad debt provision in 2013.

Income from warrant revaluation in 2013

was $1.9 million less than in 2012. This reduction in non-cash income resulted from a modest decline in the Company's stock

price in 2013 versus a significant decline in the Company's stock price in 2012.

The net loss for the twelve months ended

December 31, 2013 was $16.0 million, or $0.19 per share, compared with a net loss of $8.2 million, or $0.13 per share, during the

comparable period of 2012.

"Transgenomic achieved a number of

important milestones in 2013, including our entry into multiple strategic partnerships with world-class associates, including Amgen,

PerkinElmer and PDI," said Paul Kinnon, President and Chief Executive Officer. "Each of these partnerships is focused

and designed to help us build and achieve our goal of maximizing the commercial potential of our molecular diagnostics portfolio

by significantly expanding our global commercial reach in all of our business units."

Mr. Kinnon continued: "We maintained

this forward momentum in early 2014 by securing an important new patent relating to our ICE COLD-PCR technology platform, which

further strengthens our ICE COLD-PCR intellectual property. In parallel, we've successfully completed an important financing

on favorable terms by raising $7 million via a convertible preferred stock placement with affiliates of Third Security. We are

optimistic that, collectively, these efforts and our keen focus on commercialization of the Company's substantial assets

will provide us with a stronger corporate foundation for value creation for all of our stakeholders."

management will host a conference call to discuss fourth quarter and full year 2013 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/calendar/2014/03/fourth-qua rter-financial-results-conference-call-march-12-2014

and follow the instructions. An archived webcast of the call will be available for 60 days. A telephone replay will be available

from 8:00 p.m. Eastern Time on March 12, 2014 through 11:59 p.m. Eastern Time on March 26, 2014 by dialing 800-677-7085 (domestic)

or 402-220-0665 (international).

Transgenomic, Inc. (www.transgenomic.com)

is a global biotechnology company advancing personalized medicine in cardiology, oncology, and inherited diseases. The Company

has three complementary business divisions: Patient Testing, Biomarker Identification, and Genetic Assays and Platforms, which

provide specialized diagnostic tests, contract research services for drug development, and equipment, reagents and other consumables

for clinical and research applications in molecular testing and cytogenetics.

Forward-Looking 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 the Company's ability to execute on its plan for 2014,

the Company's proposed listing on the Nasdaq Stock Market, the anticipated benefits of the Company's multiple strategic

partnerships, management's current views and estimates of future economic circumstances, industry conditions and company performance

and financial results. 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, which

are available free of charge on the SEC's website at http://www.sec.gov. 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

CONDENSED CONSOLIDATED STATEMENTS OF

(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