Transgenomic Reports Second Quarter 2012 Financial Results Conference Call to Be Held Today at 5:00 PM Eastern Time Omaha, Neb. (

Reports Second Quarter 2012 Financial Results

Call to Be Held Today at 5:00 PM Eastern Time

Omaha, Neb. (August 1, 2012) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the three and six months ended, June 30, 2012, and provided a business

second quarter, our core businesses delivered strong, fundamental growth, enabling significant progress in many of our strategic

initiatives. Compared to the second quarter of 2011, our Laboratory Services segment grew 41% and our Diagnostic Tools segment

grew 17%," said Craig Tuttle, President and Chief Executive Officer. "In the second quarter, we completely recovered

from the sample processing backlog in our Clinical Laboratories division that we discussed last quarter and that arose in connection

with the failure of the laboratory information system ("LIMS") at our New Haven facility. Further, with the improvements

made to our LIMS, we are well positioned for the continued growth in volumes that we expect in our Clinical Laboratories division

following the launch of our C-GAAP (clopidogrel genetic absorption activation panel) test, a simple but comprehensive

saliva test that accurately predicts a patient's response to Plavix (clopidogrel), particularly following our recent

announcement concerning Medicare coverage for our C-GAAP test."

Recent Corporate and Business Events

Some of Transgenomic's recent accomplishments

of significance include:

Second Quarter Financial Results

Net sales for the second quarter of 2012

were $9.1 million compared with $7.7 million for the same period in 2011. This revenue total includes the testing volume that was

delayed by the LIMS failure at the end of first quarter. All delayed samples were completed in the second quarter along with the

higher volume of Familion samples received.

Gross profit for the quarter was $4.6 million

or 50% of net sales, compared with gross profit of $4.6 million or 59% of net sales for the same period in 2011. The lower gross

profit margin for the quarter is primarily attributable to costs incurred in connection with the failure of the New Haven LIMS,

including costs relating to repairs and processing of the sample backlog, a change in the mix of our revenues and the impact of

foreign currency valuation changes.

Operating expenses were $5.9 million during

the second quarter of 2012, compared with $6.2 million in the prior year. The decrease in operating expenses is primarily due to

lower stock compensation and bad debt expenses.

The net loss for the second quarter of

2012 was $0.6 million or $0.01 per share compared with a net loss of $6.0 million or $0.13 per share for the second quarter of

2011. The decrease in net loss is primarily due to items of income or expense resulting from the adjustment in fair values of our

preferred stock and related warrants and our warrants to purchase common stock.

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 $632,000 for the second quarter

of 2012 compared to a $369,000 loss for the same period for 2011. A reconciliation of Net Loss to Modified EBITDA is presented

Cash and cash equivalents were $6.3 million

as of June 30, 2012, compared with $4.9 million as of December 31, 2011. In addition we had short term investments of $9.0 million

as of June 30, 2012.

Six Month Financial Results

Net sales for the six months ended June

30, 2012 were $16.3 million compared with $15.1 million for the same period in 2011. Gross profit was $7.7 million or 47% of net

sales, compared with gross profit of $8.7 million or 58% of net sales for the same period in 2011. The lower gross profit margin

for the quarter is primarily attributable to costs incurred in connection with the failure of the New Haven LIMS, including costs

relating to repairs and processing of the sample backlog, a change in the mix of our revenues and the impact of foreign currency

Operating expenses were $11.5 million for

the six months ended June 30, 2012, compared with $11.1 million in the prior year.

The net loss for the six months ended June

30, 2012 was $3.3 million or $0.05 per share compared with a net loss of $8.8 million or $0.19 per share during the comparable

period of 2011. The decrease in the net loss is primarily due to items of income or expense resulting from the adjustment in fair

values of our preferred stock and related warrants and our warrants to purchase common stock.

Transgenomic management will host a conference

call to discuss second quarter 2012 financial results and answer questions beginning at 5:00 p.m. Eastern Time today. To access

the call via telephone, please dial 800-862-9098 from the U.S. or Canada or 785-424-1051 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/events.asp?id=6 and follow the instructions. An archived webcast of

the call will be available for 30 days. A telephone replay will be available from 6:00 p.m. Eastern Time on August 1, 2012 through

11:59 p.m. Eastern Time on August 15, 2012 by dialing 800-753-5212 (domestic) or 402-220-2673 (international).

About Transgenomic, Inc.

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 the global leader in cardiac genetic testing

with a family of innovative products, including its flagship 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.

David Pitts, 212-600-1902

TRANSGENOMIC, INC. AND SUBSIDIARY

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

(Dollars in thousands except per share

See notes to unaudited condensed consolidated

financial statements.

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