Wednesday July 17, 2002

COMPANY PRESS RELEASE

Transgenomic Inc. Signs Supply Agreement with Developer of Anti-Cancer Drug

Geron Corporation to Use Transgenomic Specialty Chemicals to Manufacture New Class of Compounds

OMAHA, Neb., July 17, 2002 -- Transgenomic, Inc. (Nasdaq: TBIO) announced today that it entered into a supply agreement during the second quarter with Geron Corporation (Nasdaq: GERN), a biopharmaceutical company focused on development and commercialization of therapeutic products in the areas of oncology and regenerative medicine. Under the agreement, Transgenomic will supply modified nucleic acid building block compounds that Geron will use to synthesize GRN163, Geron's anti-cancer drug, for use in preclinical and clinical studies in 2002 and 2003. GRN163 is a thio-phosphoramidate oligonucleotide, a new class of oligonucleotide analogues (oligomimetics) that have demonstrated a number of advantages over earlier-generation oligonucleotide chemistries, including enhanced sequence-specific RNA binding activity, a high resistance to nuclease degradation and improved cellular uptake and biodistribution properties.

GRN163 works by inhibiting telomerase, representing a novel approach to cancer treatment. Cancer cells rely on telomerase-an enzyme containing both protein and RNA components-to maintain the integrity of repetitive DNA sequences (telomeres) located at the ends of chromosomes. The presence of telomerase in cancer cells facilitates indefinite cell division, a critical factor in the development of cancer. GRN163 has demonstrated effectiveness in animal models of glioblastoma (brain cancer), prostate cancer, lymphoma and multiple myeloma.

"We are pleased to be able to support Geron in their ongoing work to develop a promising and novel cancer therapy," said Collin D'Silva, Transgenomic CEO. "Biopharmaceutical companies such as Geron have a need to adapt cutting-edge developments in nucleic acid chemistry for use in production-scale processes. We can offer added value by applying our expertise to help facilitate this important transition. Furthermore, we believe our capacity expansion, which is already well underway, positions us to supply the larger quantities required as therapeutic products move through clinical development to regulatory approval, market launch and beyond." As such, Transgenomic expects to develop relationships characterized by longer-term agreements based on increasing demand from key pharmaceutical and biopharmaceutical companies. D'Silva added, "We are excited to be able to support Geron through its growth as a leading developer of innovative oligomimetic-based therapies. Our selection by Geron validates our ability to deliver pharmaceutical grade synthetic nucleic acid products as we scale up manufacturing capacity. This ability should facilitate an increasing level of participation by Transgenomic in higher-value therapeutic markets."

About Transgenomic

Transgenomic provides versatile and innovative research tools and related consumable products to the life sciences industry for the synthesis, separation, analysis and purification of nucleic acids and a wide variety of nucleic acid-based specialty chemicals.

Transgenomic's specialty chemicals consist of nucleic acid building blocks, fluorescent markers, dyes and associated reagents, as well as oligomimetics (chemically-modified DNA and RNA molecules), which exhibit proven enhancements in stability, bioavailability, specificity and efficacy, making them excellent candidates for use in clinical applications such as genetic diagnostics and therapeutics. Oligomimetics also exhibit higher affinity and specificity than regular DNA making them excellent candidates for DNA diagnostics and chip technology.

Transgenomic's WAVE® System is a versatile system that can be used for genetic variation detection, size-based double-strand DNA separation and analysis, single-strand DNA separation and analysis and DNA purification. Because of this versatility, the WAVE System can essentially replace the use of traditional gel electrophoresis in the molecular biology laboratory. This patented technology uses a process known as high-performance liquid chromatography to separate DNA material so that genetic variation may be identified and analyzed. Proprietary software controls the process and produces the results of the operation in an easy-to-read chart format. Once the DNA sample is loaded into the instrument and necessary data is entered into the software, the process requires virtually no additional input from the researcher.

In four years, Transgenomic has installed WAVE Systems in over 30 countries, evidence that it is a global leader in solutions for nucleic acid analysis.

For more information about the innovative genomics research tools developed and marketed by Transgenomic, please visit the company's Web site at www.transgenomic.com.

Cautionary 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 its nucleic acids building blocks to be used in diagnostic and therapeutic development, and the ability of the company to produce nucleic acid building blocks in the quantities required. 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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