Omaha, Neb. – Transgenomic, Inc. (OTC/BB: TBIO) today reported financial results for the

year ended December 31, 2011 and provided a business update.

“Transgenomic enjoyed a landmark year in 2011, with revenue growth quarter-over-quarter and year-over-year as

well as an attention to expense management translating into positive modified EBITDA for both the fourth quarter

and full year 2011 periods,” said Craig Tuttle, President and Chief Executive Officer. “Our year-over-year top line

increase of 59%, to $32 million in revenue for 2011, reflects growth in both our clinical reference labs and

pharmacogenomics lab businesses. These encouraging top- and bottom-line results were achieved without

compromising our investment in the development of groundbreaking new technologies. Supporting our strategic

direction, and adding substantially to shareholder equity, was a $22 million private placement financing executed

last month with a number of top-tier life sciences investors.”

Mr. Tuttle continued: “2012 promises to be yet another important year for growth and value creation, as we look to

build momentum behind our recently launched products, including our proprietary clopidogrel response panel,

expand on our growing position as a key partner in cancer research and develop the markets where our products and

services are available. As always, we will continue to focus on the successful integration of new products and

technologies and expansion into new markets, all while managing toward the bottom line.”

Recent Corporate and Business Events

• Publications Validating PGxPredict®:CLOPIDOGREL (Plavix®) Panel: In March 2012, the Company

announced the publication of a new study by researchers at Vanderbilt University that further validates the

role of both genes found in the Company’s PGxPredict®:CLOPIDOGREL (Plavix®) Panel, a

comprehensive test to predict a patient’s response to clopidogrel (Plavix®). The study confirms the results

of two previous studies demonstrating that outcomes in patients receiving clopidogrel were better for

patients without genetic variations in CYP2C19, a gene whose effect is described in the drug’s label, and

ABCB1, a gene that is unique to Transgenomic’s panel and is covered by issued and pending patents owned

by Transgenomic. The results were published by Delaney, et al., in the February issue of Clinical

Pharmacology and Therapeutics.

• Successful Private Placement Offering: In February 2012, the Company successfully completed a $22

Million private placement financing which included an aggregate of $3.0 million in convertible notes issued

in December to entities associated with Third Security, LLC, a leading life sciences investment firm, that

automatically converted into shares of Transgenomic common stock and warrants to purchase such common

stock on the same terms as all investors in the private placement financing.

• Expansion of Cardiology Genetic Test Offerings: In November 2011, the Company announced the launch

of two innovative genetic tests at the annual meeting of the American Heart Association in Orlando, Florida:

ThePGxPredict:CLOPIDOGREL Panel, and a test for familial atrial fibrillation (AF).

Fourth Quarter and Fiscal Year Financial Results

Total revenue for the fourth quarter 2011 was $8.6 million, an increase of 68 percent compared with $5.1 million for

the same period of 2010. Revenues for the fourth quarter of 2011 included $4.6 million in sales related to the

Clinical Labs business, $0.5 million in revenue related to the Pharmacogenomics Services Unit (“Pharma” which

supports Clinical Trials) and $3.5 million in revenue related to the Diagnostic Tools unit.

For the year ended December 31, 2011, revenues were $32.0 million, an increase of 59 percent compared with $20.0

million for the same period of 2010. This included $16.0 million in net sales related to the Clinical Labs, $2.3

million in Pharma revenues and $13.7 million in revenues related to the Diagnostic Tools unit.

Gross profit was $5.3 million, or 62 percent of net sales during the fourth quarter of 2011, compared with gross

profit of $2.4 million, or 47 percent of net sales during the comparable period of 2010. Gross profit was $18.4

million, or 58 percent of net sales for 2011, compared with gross profit of $9.8 million, or 49 percent of net sales for

2010. The improvement in gross margin for the fourth quarter and full year is attributable to improvement in our

Lab Services and Pharmacogenomic margins. The improvement in our Lab Services is due to the revenue from the

FAMILION acquisition and successful consolidation of operations and reduction of overhead costs. Our

Pharmacogenomics margins have improved due to the revenue increase quarter-over-quarter and year-over-year as

the costs in that segment are relatively fixed.

Operating expenses were $5.4 million during the fourth quarter of 2011, compared to $3.7 million during the same

period of 2010. Operating expenses increased primarily due to the acquisition of the FAMILION business,

including non-cash charges totaling $0.3 million related to the amortization of the acquired intangibles. Operating

expenses for the year ended December 31, 2011 were $21.4 million, compared with $13.4 million for 2010.

Operating expenses increased primarily due to the acquisition of the FAMILION business, including non-cash

charges for amortization related to the acquired intangibles of $1.2 million. We also recorded non-cash charges for

stock option expenses of $1.0 million and bad debt expense of $1.7 million.

Net income for the fourth quarter of 2011 was $0.3 million, or $0.00 per share, compared with a net loss of $0.8

million, or $0.02 per share, for the fourth quarter of 2010. The Company reported a net loss for the year ended

December 31, 2011 of $9.8 million, or $0.22 per share, compared with a net loss of $3.1 million, or $0.06 per share,

for 2010. The increase in net loss for 2011 compared to 2010 is attributable primarily to interest expense of $1.0

million and non-cash charges for preferred stock valuation of $6.1 million, amortization related to the acquired

intangibles and stock option expenses.

Modified EBITDA, which is a non-GAAP measure that Transgenomic views as an appropriate and sound measure

of the Company’s results, improved to a gain of $615,000 for the fourth quarter of 2011 from a proforma loss of $1.4

million for the same period for 2010. For the year ended December 31, 2011, Modified EBITDA was a gain of

$195,000 as compared to a proforma loss of $6.3 million for the same period for 2010. A reconciliation of Net Loss

to Modified EBITDA is presented below.

Conference Call

Transgenomic management will host a conference call to discuss 2011 financial results and answer questions

beginning at 11:30 a.m. Eastern Time today. To access the call via telephone, please dial 800-894-5910 from the

U.S. and Canada or 785-424-1052 for international participants and enter the 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 https://www.transgenomic.com/events.asp?id=6 and follow the instructions. An archived webcast of the

call will be available for 14 days. Investors can listen to a replay via telephone until 11:59 p.m. Eastern time on

March 21, 2012 by dialing 800-727-1367 (domestic) or 402-220-2669 (international).

About Transgenomic

Transgenomic, Inc. (www.transgenomic.com) is a global biotechnology company advancing personalized medicine

in cancer and inherited diseases through its proprietary molecular technologies and world-class clinical and research

services. The Company has three complementary business divisions: Transgenomic Pharmacogenomic Services is a

contract research laboratory that specializes in supporting all phases of pre-clinical and clinical trials for oncology

drugs in development. Transgenomic Clinical Laboratories specializes in molecular diagnostics for cardiology,

neurology, mitochondrial disorders, and oncology. Transgenomic Diagnostic Tools 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 strengthen its leadership in personalized medicine.