Wednesday October 10, 2001

COMPANY PRESS RELEASE

Transgenomic Introduces Navigator™ Software And Bioinformatics Portal For The WAVE® System

Modular System Architecture Supports Breakthrough Genetic Analysis Technology With Distributed Computing Capabilities

SAN DIEGO, Calif., (Oct. 10) - Transgenomic, Inc., (Nasdaq: TBIO) today announced the introduction of new operating software for its flagship product, the WAVE® System for genetic analysis, and a bioinformatics portal, here at the 51st Annual Meeting of the American Society for Human Genetics (ASHG). The Navigator( Software is designed to dramatically improve genetic lab productivity through distributed computing capabilities, new algorithms designed to detect genetic variations or mutations and integration to its bioinformatics portal, www.MutationDiscovery.com, which will provide subscribers access to 'best practice' methods and validation data for detecting mutations in specific genes.

The WAVE System analyzes known and unknown genetic mutations with greater sensitivity, accuracy, speed and cost-effectiveness than other techniques. Understanding variations in the genetic code is the vital link to the development of new medical 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, such as deafness or cancer. By comparing mutations in the genome to the occurrence of diseases or particular traits, correlation can be made between genes and specific diseases or traits.

WAVE System control, data acquisition and mutation analysis are fully automated by the Navigator Software. A proprietary tool designed specifically for the WAVE System, Navigator Software is thought to be the only commercially available software that determines optimum experimental design for analyzing genetic samples for the presence of mutations. Navigator Software uses modular architecture to enable development of functional modules to meet the highly specialized needs of users doing genetic research.

A major new feature of the Navigator Software is automated mutation calling. In large population studies where thousands of samples may be analyzed multiple times, data analysis can be highly labor and time intensive. The Navigator Software uses proprietary algorithms to detect common and rare genetic variations in large population studies. Often genetic studies of large populations are done in collaboration by many laboratories around the world. Genetic differences between different populations can be studied both for their impact on disease and for their role in human evolution. Using Navigator Software, collaborators can compare data from multiple WAVE Systems being operated in laboratories worldwide. Dr. David Goldman, Chief of the Laboratory of Neurogenetics at the National Institute on Alcohol Abuse and Alcoholism, cites the "critical need to automate management of these huge data sets" as met by the Navigator Software.

Another key upgrade delivered by Navigator Software is distributed, networked computing. Using this software, researchers can operate their WAVE Systems from a remote site and retrieve data for off-line analysis. An intuitive interface guides the user through system set-up using pre-sets and automated sequences to reduce set-up time on the instrument and optimize experiments. Navigator Software also enables system troubleshooting by Transgenomic technical support staff located anywhere in the world.

Navigator Software will be available as an upgrade to all existing WAVE System users in the fourth quarter of 2001 and MutationDiscovery.com will be available to users in December 2001. According to Mike Marino, Ph.D., director of Applied Genomics & Molecular Genetics for Transgenomic, "Navigator Software is a platform on which we can further develop the WAVE System to meet the many different needs of the genomics community."

"The breakthrough architecture and user interface of Navigator Software are designed to allow scientists to focus on their critical research, minimizing their focus on WAVE System operation," said Marino. "With hundreds of systems installed at leading institutions worldwide, the WAVE System has become a crucial component in the race to understand the structure and function of the human genome."

Subscribers to MutationDiscovery.com will have access to all methods including the accession number of reference sequences, PCR primers and amplification conditions and DHPLC (denaturing high-performance liquid chromatography) conditions. Mutation screening data and DHPLC methods will be continuously solicited from the community of WAVE System users. These will be reviewed by an independent editorial board for inclusion in the 'best practices' and standards library.

A future goal for MutationDiscovery.com is integration with the new Navigator Software, which will allow download of DHPLC methods and validation chromatograms via the Web to a subscriber's own WAVE System. The ability to share data and download best practices directly is expected to be of particular benefit to researchers at the 15 laboratories participating in the WECARE Study Consortium, studying hereditary, environmental and radiation impacts on breast and ovarian cancer.

The WAVE® System Technology

As efforts to sequence and annotate the human genome near completion, the WAVE System, unlike more conventional technologies, can detect 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. Principal application areas include genetic mutation screening and detection and new paths in microbial, pharmaceutical, biotechnology, forensic, plant and animal research.

Since its introduction in late 1997, the WAVE System has been utilized extensively by leading research institutions worldwide. 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, 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 unmelted 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.