Sale Completes Strategic Transition to a Pharmaceutical Company with a PDUFA date for vilazodone in January 2011

NEWTON, Mass. – Clinical Data, Inc. (NASDAQ: CLDA) today announced that it has signed a definitive asset purchase agreement with Transgenomic, Inc. (OTCBB: TBIO) to sell its genetic and pharmacogenomic testing and biomarker development business for approximately $15.4 million, including $6 million in cash, a three-year promissory note for $8.5 million bearing interest at 10%, and a second, one-year promissory note for $932,000 bearing interest at 6.5%. Both promissory notes will be secured by all of the assets of Transgenomic. In addition, Clinical Data will receive a percentage of accounts receivables collected by Transgenomic after the closing, as well as milestones and royalty payments on the anticipated development and commercialization of multiple new pharmacogenomic diagnostic products. The transaction will complete Clinical Data’s transformation to a pharmaceutical company with a deep product pipeline including two late-stage compounds, the most advanced of which is vilazodone, a new treatment in development for Major Depressive Disorder, followed by Stedivaze, a coronary vasodilator in Phase III development for myocardial perfusion imaging. A New Drug Application for vilazodone was accepted for review by the U.S. Food and Drug Administration (FDA) on May 21, 2010, with January 22, 2011 currently assigned for decision-making by the FDA under the Prescription Drug User Fee Act or PDUFA.

“Once closed, this sale will complete Clinical Data’s strategic transition to a pharmaceutical company and the monetization of our non-core assets, thereby permitting us to fully focus our resources on advancing our late-stage therapeutic programs,” said Drew Fromkin, President and CEO of Clinical Data. “This divestiture will also reduce our cash consumption from non-core assets and enable our commercial team to focus exclusively on the launch of vilazodone, subject to the successful completion of FDA review. We are pleased that Transgenomic will apply its significant knowledge in specialty diagnostics and proprietary technologies to the FAMILION brand of cardiac genetic tests and the PGxPredict® pharmacogenomic tests.”

Under the terms of the asset purchase agreement, Transgenomic will acquire Clinical Data’s FAMILION family of genetic tests for inherited heart diseases and biomarkers underlying the PGxPredict tests which predict drug response, as well as the infrastructure that supports the business. In addition to the cash and promissory notes to be received by Clinical Data at closing, the Company will also share in the collection of accounts receivables to be collected over the first eighteen months after closing, which is estimated to be as high as $1.8 million, receive milestones of up to $500,000 in cash or in Transgenomic’s stock upon the commercial launch of two pharmacogenomic tests, and royalty payments on the development and commercialization of multiple new diagnostic products that leverage the biomarker patent estate and expertise sold by Clinical Data. The transaction, which is subject to the completion of financing arrangements by Transgenomic, regulatory approvals and certain other customary closing conditions, is currently expected to close by the end of the calendar year.

Clinical Data was advised in the transaction by Wedbush PacGrow Life Sciences, which also provided a fairness opinion to the Company’s Board of Directors.

About Clinical Data, Inc.

Clinical Data develops first-in-class and best-in-category therapeutics. The Company is advancing its late-stage drug candidates for central nervous system disorders and cardiovascular diseases, to be followed by promising drug candidates in major therapeutic areas including oncology and inflammatory diseases. Clinical Data plans to differentiate its therapeutics by combining its drug development and biomarker expertise to develop products with enhanced efficacy and tolerability, improving patient health and reducing costs. To learn more, please visit the Company’s website at www.clda.com.

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