Monday December 11, 2000

COMPANY PRESS RELEASE

Transgenomic Announces Shipment of 400th WAVE® System

Shipment Reflects Genetic Research Laboratories' Growing Reliance on Critical Technology

SAN JOSE, Calif., and OMAHA, Neb., (December 11, 2000) - Transgenomic, Inc., (Nasdaq:TBIO) today announced the achievement of a major corporate milestone in the fourth quarter with the shipment of the company's 400th WAVE® Nucleic Acid Fragment Analysis System, which analyzes both known and unknown genetic mutations faster, with more accuracy, and at a lower cost than other commercially available techniques to France's Institut de Biologie de Lille (I.B.L.). This is the fifth WAVE system purchased by I.B.L. since 1998.

Since its introduction in late 1997, the WAVE System has been utilized extensively by leading research institutions worldwide. In addition to the shipment of the 400th WAVE System, Transgenomic is on target to ship its 500th WAVE System in the first quarter of 2001.

"At Lille Genopole, we are focused on the genetics of multifactorial diseases, such as diabetes, atherosclerosis and other cardiovascular diseases and drug discovery. For our needs, we believe Transgenomic's WAVE System is the most sensitive, accurate and cost effective technique for SNP identification," noted Philippe Froguel, M.D., Ph.D., Head of the Department of Human Genetics, Institut de Biologie de Lille. "Based on the system's sensitivity and low rate of false positive results, the WAVE System is rapidly becoming the tool of choice for medical genetics."

Recognized as one of Europe's leading molecular diagnostic researchers, Dr. Froguel shares his time between the Institut de Biologie de Lille and Queen Mary and Westfield College, University of London in the United Kingdom, where the WAVE System is also in use. Dr. Froguel is director of the Queen Mary and Westfield College Genomic Center and a professor of molecular genetics and experimental diabetes there as well.

As efforts to map the human genome near completion, understanding variations in the genetic code is becoming the vital link to the development of new diagnostic and therapeutic products. While individual traits, such as hair and eye color, are determined by normal genetic variations, abnormal variations or mutations can create disease states. By comparing genetic mutations in the genome to the occurrence of diseases or particular traits, correlation can be made between genes and specific diseases or traits. The WAVE System, unlike tools employing more conventional technologies, can detect these genetic mutations without previous knowledge of their existence or position. As a result, the WAVE System provides researchers with a more accurate and efficient means of performing the experiments necessary to identify mutations and to correlate the relationships between mutations and diseases.

"Understanding variations or mutations in genes is a critical step in learning more about the cause, onset and progression of various diseases," said Collin D'Silva, Chief Executive Officer, Transgenomic. "With the shipment of our 400th system to Lille, we believe that this technology is fast becoming recognized as a crucial component of any genetic researcher's lab. And we are excited to play an important role in the discovery of disease causes and treatments."

The WAVE® System Technology

The WAVE® Nucleic Acid Fragment Analysis System analyzes both known and unknown genetic mutations with greater sensitivity, accuracy, speed and cost-effectiveness than other commercially available products or techniques. Principal application areas include genetic mutation screening and detection and new paths in microbial, pharmaceutical, biotechnology, forensic, plant and animal research. Today, WAVE Systems are used in leading genomics, academic, medical and biopharmaceutical research institutions worldwide, including: Harvard University, Stanford University, Baylor College of Medicine, University of Chicago, Fred Hutchison Cancer Facility, Mayo Clinic, National Cancer Institute, National Institutes of Health, Institut Curie, University of Cambridge, Wellcome Trust-Oxford University, Institut Gustave Roussy, SmithKline Beecham, Bristol-Meyers Squibb, Millennium Pharmaceuticals, Merck & Company, Novartis and Eli Lilly & Company.

The WAVE System, utilizing the method of DHPLC (denaturing high performance liquid chromatography), analyzes previously identified genes for both known and unknown genetic variations, changes or mutations. Mutations identified by DHPLC may provide researchers with critical information about the cause, onset and progression of certain diseases.

Scanning for mutations in genes with the WAVE System relies on the specific binding of complementary strands to form a DNA double helix. If a mutation in a gene exists, a DNA heteroduplex (pairing of not fully complementary strands) is formed and the binding is less "tight." High temperatures can be used to denature (melt) the DNA double helix. If a mutation exists, the melting temperature of the heteroduplex will be lower than that of the homoduplex. Partially melted DNA can be easily separated from un-melted DNA homoduplexes (pairings of fully complementary strands) containing no mutation. This method of denaturing the DNA double helix is sensitive, fast, accurate and inexpensive when compared to DNA sequencing.

If the WAVE System screening detects a variation, researchers will often use traditional DNA sequencing to understand the mutation in more detail. Using the WAVE System in advance of DNA screening can help eliminate unnecessary, detailed analysis on DNA without mutations, saving time and money.

About Transgenomic

Transgenomic is headquartered in Omaha, Neb., and has offices in the United States, Europe and Japan. Major research-and-development facilities are located in San Jose, Calif. and Crewe, Cheshire, United Kingdom. The company provides innovative research tools to the genomics segment of the life sciences industry. These tools enable researchers to discover and understand variation in the human genetic code, or genome, in order to accelerate and improve drug development and diagnostics.

About Institut de Biologie de Lille

The new Institut de Biologie de Lille (I.B.L.) was launched in 1997 as a major basic research facility of the C.N.R.S. (National Center of Scientific Research), as a result of a policy decision involving the Ministry of Research and the Conseil Regional Nord-Pas de Calais (Country Council) in France. It is aimed at developing forefront international research in life sciences, especially in the fields of human genetics, signal transduction, development and cancer, microbiology, and structure-function relationships. The I.B.L. is implanted within the campus of the Pasteur Institute of Lille for enhanced synergy, and is affiliated with the faculties of Sciences and Medicine. The I.B.L. features Ph.D. training programs, and is currently attracting post-doctoral fellows from Europe and worldwide. Eighteen research groups have already joined, totaling close to 280 people involved in research.

Forward Looking Statement

This press release may contain forward-looking statements that reflect management's current views and estimates of future economic circumstances, industry conditions, company performance and financial results. Such statements are subject to certain factors, risks and uncertainties described from time to time in Transgenomic, Inc.'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.

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