Wednesday

Inc. Reports First Quarter 2009 Results

Neb., May 13, 2009 - Transgenomic, Inc. (OTCBB:

TBIO.OB) today announced financial results for the first quarter ended

March 31, 2009. The Company's financial results are presented in the tables that

Company reported a net loss of $953,000 or $.02 per share for the first quarter

of 2009 as compared to a net income of $122,000 or $0.00 per share for the first

from continuing operations were $5.0 million during the first quarter 2009,

compared to $6.3 million during the comparable period of 2008. Gross profit from

continuing operations was $2.8 million or 56 percent during the first quarter of

2009 compared to $3.6 million or 58 percent during the comparable period of

2008. Operating expenses from continuing operations were $3.8 million

during the first quarter of 2009 compared to $3.5 million during the same period

of 2008. Excluding the impact of foreign currency revaluation

gains/losses, operating expenses were down by $0.1 million in the first quarter

of 2009 compared to the same period of 2008. Cash and cash equivalents

totaled $4.8 million at March 31, 2009.

Tuttle, the Company's President and Chief Executive Officer, noted

"Unfortunately, like many companies today, we are also experiencing an impact

from the overall economic slowdown. This resulted in a decline in first quarter

revenue to $5.0 million compared to our first quarter revenues in 2008 of $6.3

million and a net loss of $1.0 million in the quarter. This decline was

primarily the result of a slowdown in instrument orders compared to what we

experienced throughout 2008. Our Molecular Diagnostics Laboratory grew from $.9

million to $1.0 million in revenue in the first quarter of 2009 compared to the

fourth quarter of 2008. The Molecular Diagnostics Laboratory grew by

$447,000 over the first quarter of 2008. We have added an additional

24 new ordering institutions during the first quarter of 2009. This business was

also impacted by the current economy which slowed our quarterly growth rates. We

believe this is the result of potential patients delaying diagnostic testing

during the current economic tumult since we are performing testing for 64 more

customers than in the first quarter of 2008. In addition, we do have

some customers whose volumes are lower compared to the same period of the prior

year. On a positive note, we are beginning to see signs of improved instrument

sales for the second quarter."

management will discuss first quarter 2009 financial results via teleconference

on Wednesday, May 13, 2009 at 5:00 p.m. Eastern Time. To access the call via

telephone, dial 800-895-0231 or 785-424-1054. The Company will also host a

live broadcast of the call over the Internet. To listen to the webcast,

investors should log on to the Company's Investor Relations web page at http://www.transgenomic.com/events.asp?id=6

and follow the instructions provided. An archived recording of the conference

call will be available and can be accessed via the web using the same link

listed above for 14 days after the call. Investors can also listen to a replay

via telephone until 11:59 p.m. Eastern Time on Wednesday, May 27,

2009. Simply dial 800-723-0544 or 402-220-2656 from any

is a global biotechnology company that provides unique products and services for

automated high sensitivity genetic variation and mutation analysis. Their

offerings include systems, products, discovery and laboratory testing services

to the academic and medical research, clinical laboratory and pharmaceutical

markets in the fields of pharmacogenomics and personalized medicine. Specific

offerings include WAVE DHPLC

Systems, related consumables and assay kits, cytogenetics automated systems,

Transgenomic Molecular Clinical Reference Laboratory and Pharmacogenomics

Research Services. Transgenomic's two laboratory services divisions utilize

these technologies and expertise to provide a menu of mutation scanning tests

for over 700 cancer-associated genes and more than 60 validated diagnostic tests

to meet the needs of pharmaceutical and biotech companies, research and clinical

laboratories, physicians and patients. For more information about the innovative

systems, products and services offered by Transgenomic, please

visit: www.transgenomic.com.

Cautionary Statements

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 our 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 reports to 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.

confirmation of release or further information, please contact:

Condensed Consolidated Statements of Operations

in thousands except per share data)

Condensed Consolidated Statements of Cash Flows

Consolidated Balance Sheets