Monday May 6, 2002

COMPANY PRESS RELEASE

Transgenomic Licenses New Oligonucleotide Synthesis Technology From University Of Calgary

Resulting New Reagents Will Speed Synthesis, Reduce Cost

CALGARY, Alberta, and OMAHA, Neb., May 6 / -- Transgenomic Inc., (Nasdaq: TBIO) today announced its exclusive worldwide license of a new technology to speed up and reduce the cost of synthesizing nucleic acids. The technology, invented by Dr. Richard T. Pon of the University of Calgary, was licensed through University Technologies International Inc. of Calgary, Alberta, Canada (UTI). Reagents manufactured and sold under the license will extend the successful Transgenomic Bioconsumables™ product lines used by biopharmaceutical companies around the world in their efforts to discover and develop novel gene-based diagnostics and therapeutics.

Transgenomic is a leading supplier of amidites, the fundamental building blocks for the synthesis of oligonucleotides (oligos). Synthetic oligos, or short single-stranded DNA sequences, are used in antisense therapeutics, in microarray technology and for many other purposes. While estimates vary, the demand for synthetic oligo-based products is expected to grow significantly in the coming years.

Current oligo synthesis starts with a solid support, a foundation on which to build the oligo, preloaded with a linker and the first nucleic acid base. The linker couples the first base to the foundation and can be cleaved, or cut, at the end of the building process to remove the foundation from the finished oligo. Other bases are added in the appropriate order using the standard amidite cycle to produce an oligo of the desired sequence.

With Dr. Pon's technology, the linker and first base are combined to form new linker phosphoramidite reagents that are simply added in the initial step of the synthesis cycle, and all other steps remain the same. The new First Base™ Linkers cleave more rapidly than the present state of the art under standard conditions, saving time and money. First Base Linkers also allow customers to use off-the-shelf amino or hydroxyl-based synthesis supports, rather than the expensive custom CPG or PS/DVB supports usually used at present.

"The need for synthetic oligonucleotides is rapidly increasing. These new reagents provide significant cost and time savings for oligo synthesis customers already familiar with Transgenomic's quality and service," said Collin D'Silva, CEO of Transgenomic. "The scale advantages of this technology should compel not only current customers, but all companies who need to produce synthetic oligonucleotides in quantity."

"Transgenomic's technological expertise and market penetration in DNA and RNA analysis and purification make them an ideal partner for Dr. Pon's oligo synthesis technology," said Oleh Hnatiuk, president and CEO of UTI. "We look forward to commercializing this important new technology with them."

About the University of Calgary and UTI

University Technologies International Inc. is a technology commercialization company wholly owned by the University of Calgary, one of Canada's most research-intensive universities. UTI supplies technology commercialization services including licensing, company creation and business development to researchers and inventors at the University of Calgary, other institutions, government research laboratories, hospitals, corporate and private laboratory facilities and inventors.

About Transgenomic

Transgenomic is headquartered in Omaha, Neb., and has offices in the United States, Europe and Japan. Major manufacturing facilities are located in San Jose, Calif., Omaha, Neb., Cramlington, Newcastle, U.K., and Glasgow, Scotland, U.K. 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.

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, including the growth in demand for synthetic oligo-based products, and the ability of the oligonucleotide synthesis technology to speed up and reduce the cost of synthesizing nucleic acids. 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.

For confirmation of release or further information contact: