Friday October 12, 2001

COMPANY PRESS RELEASE

Transgenomic Expands Product Line For Advanced Genetic Analysis

SAN DIEGO, Calif. (Oct. 12) - Transgenomic, Inc. (Nasdaq: TBIO) today announced the introduction of new reagents and consumables for the WAVE® System for genetic analysis here at the 51st Annual Meeting of the American Society for Human Genetics (ASHG). Designed specifically for the WAVE System to deliver optimum, reproducible results, the products being introduced are the Optimase™ Polymerase, the WAVE Pak, the WAVE QC Pak and the 1X WAVE Optimized™ reagents.

"DHPLC, or denaturing high-performance liquid chromatography, is an exquisitely sensitive technique for genetic mutation scanning, and several studies have shown WAVE System accuracy for mutation detection approaching 100 percent," said Michael Marino, Ph.D., director of Applied Genomics and Molecular Genetics for Transgenomic. "Our goal in offering a complete line of consumables products is to control all the variables affecting WAVE System performance, including accuracy, sensitivity, reproducibility and reliability. That is key to modern genetic analyses."

According to Marino, recent advances in genomics have relied on advanced analytical chemistry technologies such as DHPLC, requiring a high degree of precision and standardization. A major goal for Transgenomic is to further facilitate adoption of its analytical technology by geneticists and biologists through rigorously optimized reagents.

When working with a technique as sensitive as DHPLC, the practical limit to accuracy of genetic scanning is the fidelity of DNA amplification. Specifically formulated for high fidelity DNA amplification and fully compatible with the DNASep® cartridge, Optimase Polymerase is designed to ensure the very highest levels of WAVE System performance. Research has shown that the fidelity of Optimase Polymerase base incorporation is one of the highest among leading commercially available polymerases. Optimase Polymerase will begin shipping in December 2001.

The WAVE Pak contains reagents and consumables manufactured and packaged to the strict standards required for highest WAVE System performance. The WAVE QC Pak is designed for maximum WAVE System accuracy and sensitivity through precise system calibration and maintenance. Available immediately, the WAVE Pak and WAVE QC Pak enable WAVE System users to achieve the highest levels of sensitivity, accuracy and reliability in mutation scanning.

To ensure accurate and reproducible DHPLC analyses, reagents must be manufactured to the strictest quality standards. The new 1X Wave Optimized reagents offer significant improvements in quality control as well as significant convenience for WAVE System users.

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.