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

Transgenomic Reports Third Quarter 2012

Conference Call to Be Held Today at

5:00 PM Eastern Time

Omaha, Neb. (November 7, 2012) - Transgenomic,

Inc. (OTC/BB: TBIO) today reported financial results for the three and nine months ended, September 30, 2012, and provided

Third Quarter Financial Results

Net sales for the third quarter of 2012

were $7.9 million compared with $8.3 million for the same period in 2011. Despite the decline in consolidated sales, the Company

realized double digit growth in its Clinical Laboratories segment, its largest business, driven by sales of its C-GAAP test, which

identifies whether or not a heart disease patient will benefit from Plavix (clopidogrel) treatment, and also due to a shift in

sales mix to higher priced tests. This increase was offset by a decline in the Pharmacogenomics Services segment, due to a lower

volume of projects performed for our pharmaceutical clients. We also had a decline 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 $3.8 million or 48 percent

of net sales, compared with gross profit of $4.4 million or 54 percent of net sales for the same period in 2011. The margin decline

was largely due to the significantly lower margins in the Pharmacogenomics Services segment, since its costs are relatively fixed.

The Clinical Laboratories segment also had a more modest decline in its gross margin, as it is making investments to improve efficiency

in anticipation of the upcoming volume growth from the C-GAAP test and the recently acquired ScoliScore test.

Operating expenses were $6.2 million during

the third quarter of 2012, compared with $4.9 million in the prior year. The increase was the result of a higher bad debt provision,

higher non-cash stock compensation expense, higher costs related to expansion of our field sales force to support the launch of

C-GAAP and ScoliScore , and higher research and development expenses.

In summary, the net loss for the third

quarter of 2012 was $2.8 million or $0.04 per share compared with a net loss of $1.3 million or $0.03 per share for the third quarter

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

$1.8 million for the third quarter of 2012 compared to income of $43,000 for the same period

for 2011. A reconciliation of Net Loss to Modified EBITDA is presented below.

Cash, cash equivalents and short term investments

were $8.7 million as of September 30, 2012, compared with $4.9 million as of December 31, 2011.

Nine Month Financial Results

Net sales for the nine months ended September

30, 2012 increased to $24.2 million from $23.4 million for the same period in 2011. The Clinical Laboratories segment had a 17%

increase in sales, driven by sales of its recently launched C-GAAP and NuclearMitome 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.

We also had a decline in our Diagnostic Tools segment, which, similar to the quarterly results, had a higher percentage of its

sales go to our European distribution partner at distributor prices.

was $11.5 million or 47 percent of net sales, compared with gross profit of $13.2 million or 56 percent of net sales for the same

period in 2011. The decline in gross profit was due to the higher costs in our Diagnostic Tools segment, reflecting a shift to

sales to our distributor, which carry lower margins, as well as higher costs in our Laboratory Services segment incurred in connection

with repairing and improving the Laboratory Information Management System in our New Haven facility following its software failure

in the first quarter of 2012, as well as investments made to improve the efficiency in New Haven.

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

were $17.7 million for the nine months ended September 30, 2012, compared with $16.0 million in the prior year. The increase was

due to a higher bad debt provision, costs related to the expansion of our field sales force to support new product launches

and higher research and development expenses.

In summary, the net loss for the nine months

ended September 30, 2012 was $6.0 million or $0.09 per share compared with a net loss of $10.0 million or $0.22 per share during

the comparable period of 2011. The loss for the nine months ended September 30, 2011 included non-cash charges of $6.9 million

related to the revaluation of our preferred stock.

to make progress on our strategic initiatives in order to drive growth at a greater rate into 2013," said Craig Tuttle, President

and Chief Executive Officer. "At the end of the third quarter, we expanded our broad genetic tests portfolio with the acquisition

of the ScoliScore Adolescent Idiopathic Scoliosis Prognostic Test, a proprietary, saliva-based, multi-gene test which exemplifies

the clinical and health economic benefits of our products. We also continue to invest in clinical research aimed at broadening

the commercial application of ICE COLD-PCR, our proprietary technology capable of the highest-available

sensitivity in detecting mutations from virtually any sample type, including blood. These investments, we believe, provide for

longer-term value not only in our tests, technologies and laboratory services, but for our Pharmacogenomics Services and Tools

Regarding financial results for the quarter

and nine months ended September 30, 2012, Mark P. Colonnese, Executive Vice President and Chief Financial Officer, said: "The

third quarter saw a decline in top and bottom line numbers, however we continued to see topline growth in our Clinical Laboratories

unit, which is up by 17% on a year-to-date basis versus last year. This group is benefiting from our investment in the expansion

and roll-out of a number of our proprietary tests, including the C-GAAP, ScoliScore and NuclearMitome tests. We anticipate

realizing significant growth in this unit over the coming quarters."

Recent Corporate and Business Events

Transgenomic management will host a conference

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

the call via telephone, please dial 866-952-1907 from the U.S. or Canada or 785-424-1826 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 14 days. A telephone replay will be available from 6:00 p.m. Eastern Time on November 7, 2012 through

11:59 p.m. Eastern Time on November 21, 2012 by dialing 800-723-0607 (domestic) or 402-220-2658 (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

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, anticipated growth in the Company's Clinical Laboratories

unit and the projected benefits of the Company's acquisition of the ScoliScore Adolescent Idiopathic Scoliosis Prognostic

Test. 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 SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

(Dollars in thousands except per share