Monday May 10, 1999

COMPANY PRESS RELEASE

Transgenomic Completes Round of Financing in Support of Rapidly Growing Technology

Transgenomic, Inc. has completed the placement of $12,000,000 in Convertible Notes through the efforts of Hambrecht and Quist LLC, New York and San Francisco. Invesco Private Capital, New York and Hambrecht & Quist were two of the major investors in the round of financing completed in March of 1999.

Hambrecht & Quist represented Transgenomic under an agreement signed in mid December, 1998. In using their best efforts, to place an original agreed to amount of $10 Million H&Q far surpassed that amount in raising an additional $2 Million, for the total of $12 Million in Convertible Notes.

As a part of the same transaction, Transgenomic has agreed that Hambrecht & Quist will act as the Company’s Financial Advisor for a period through December, 1999. With the signing of the Agreement, the Company also granted H&Q the right to investment banking services for a period of twelve months. "We are very pleased to be associated with Hambrecht & Quist, and further to have Invesco as a major investor in our technology", said Collin D’Silva, CEO of Transgenomic. D’Silva further stated that, "this financing will allow us to strengthen our world-wide leadership with the WAVE® Nucleic Acid Analysis technology and continue additions to our sales and marketing efforts as well as our research and development in the Life Sciences Arena."

Transgenomic, Inc. markets the WAVE® Nucleic Acid Analysis System, which incorporates patented technology for the automated separation and analysis of DNA. The Company believes the technology offers significant advances in speed and information gathering ability over existing technologies.

Certain statements made by Transgenomic, Inc. in this press release may be forward looking. These may be identified by the use of forward-looking words or phrases such as in the following examples: "anticipate," "believe," "estimated," "think," "planned," "potential," "should," others. Any forward-looking statements are based on the Company's current expectations. The Company undertakes no obligation to publicly release the results of any revisions to any forward looking statement, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Statements in this release should be evaluated in light of these important factors.

For more information contact investorrelations@transgenomic.com.