OMAHA, Neb. – Transgenomic, Inc. (OTC/BB: TBIO) today announced that it has been awarded a research and development grant totaling $1,070,453.32 from the U.S. government under HR: 3590 – Patient Protection and Affordable Care Act (the “Act”) in immediately available funds. This is among the largest awards for any one company under the Act.

Four of the Company’s R&D programs received the highest maximum allowable award of $244,479.25 each, including COLD-PCR, the company’s ultra-high mutation detection technology, Surveyor SCAN kit development for key cancer pathway gene mutations and mtDNA Damage Assays.

Under the Act, $1 billion was earmarked for qualifying therapeutic discovery projects that treat

areas of unmet medical need or prevent, detect or treat chronic or acute diseases and conditions,

and/or reduce the long-term growth of healthcare costs in the United States. In addition,

allocation of the credit took into consideration which projects show the greatest potential to create

and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in life,

biological and medical sciences. Applicants were required to submit detailed information

demonstrating that their research conformed to the parameters of the Act, along with a summary

of qualifying expenditures that formed the basis for the award. The award of $1,070,453

represents a pro rata reduction applied to all applicants, as the program was significantly oversubscribed.

Craig Tuttle, president and chief executive officer of Transgenomic said, “We were particularly

pleased that our work with COLD-PCR, an extremely sensitive method for detecting genetic

mutations with, was recognized as being worthy of this development award as we see significant

promise in applying COLD-PCR to the early detection of circulating DNA mutations in cancer

and other diseases. In addition, the fact that five of our programs received awards demonstrates

the breadth of our research and development pursuits.”

About Transgenomic, Inc.

Transgenomic, Inc. (www.transgenomic.com ) is a global biotechnology company specializing in

high sensitivity genetic variation and mutation analysis, providing products and services in DNA

mutation detection and discovery for clinical research, clinical molecular diagnostics and

pharmacogenomics analyses. Its product offerings include the WAVE® Systems and associated

consumables specifically designed for use in genetic variation detection and single- and doublestrand

DNA/RNA analysis and purification. With broad applicability to genetic research, nearly

1,500 systems have been shipped to customers in more than 50 countries. The SURVEYOR®

Mutation Detection Kits and SURVEYOR Check-It Kit provide reagents and protocols for high

sensitivity detection of mutations in DNA. In addition, HANABI automated chromosome

harvesting systems improve laboratory productivity with consistent quality compared with

manual methods for cytogenetic analyses. Service offerings include the Transgenomic Molecular

Laboratory, which provides reference laboratory services specializing in molecular diagnostics

including Mitochondrial Disorders, Oncology and Hematology, Molecular Pathology and

Inherited Diseases. Transgenomic Pharmacogenomics Services is a CRO for pharmacogenomic,

translational research and clinical trials.

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.