Transgenomic : Investor Relations

OMAHA, Neb., and SAN JOSE, Calif., Apr. 4 / -- Transgenomic, Inc. (Nasdaq: TBIO) today announced that it expects first quarter 2002 revenue to be approximately $9.8 million. This represents an over 20 percent increase compared to the same quarter in 2001; however, these results are approximately 15 percent below previous guidance.

Greg Duman, chief financial officer, indicated that lower instrument revenues were the primary reason for not achieving earlier revenue projections. "We saw a reduction in spending from our commercial and industrial customers, a segment we have been targeting for the last two years. The feedback we receive is that our commercial customers are not purchasing alternative technologies, but delaying purchasing decisions," said Duman. He also noted that the Asian markets were below expectations, particularly Japan. Traditionally the first quarter in Japan has been stronger due to their fiscal year-end activity. "We continue to view the WAVE^® System as an essential platform for the genetic research market," Duman added.

Although the legislation was passed late, the company expects the increase in National Institutes of Health's funding for this year to have a positive impact on its instrument business. System sales should benefit from the new WAVE Navigator™ Software, and the first shipments of the newest instrument named WAVE-MD™. Navigator will provide additional value to WAVE users, and WAVE-MD will extend the WAVE platform to a new set of customers.

In commenting about the results, Collin D'Silva, CEO said, "While disappointed that we did not meet our expectations, we remain confident in the ability to execute on both short- and long-term business objectives. We participate in dynamic markets that offer a great deal of long-term growth potential. Our WAVE System provides customers with unique solutions, and as such, we have seen no decline in our average selling prices." Customers are providing evidence of the continued growth in the markets and the acceptance of Transgenomic technology. D'Silva noted the sizable number of third-party presentations and discussion sessions based on the company's technology to be held during the upcoming annual meeting of the American Association of Cancer Research in San Francisco.

The company has positioned itself to participate in the future of genomics. Its synthetic nucleic acid (SNA) products are fundamental building blocks utilized throughout the biotech industry. D'Silva noted that the company is continuing to invest in its SNA products to ensure the capability to meet both customers' requirements on a quality basis and their increased demand.

D'Silva commented that the vast amounts of information gathered to date, and the additional information yet to be gathered, must be turned into products that can improve the quality of life. "We continue forward in our research and development efforts. We intend to deliver solutions to our customers that provide significant value propositions. We remain committed on the instrument business to increasing throughput, enhancing accuracy, while reducing cost." D'Silva concluded, "It is also essential to restate we have not lost sight of our commitment to reaching profitability in the fourth quarter of this year."

A webcast conference call will be held at 5:00 p.m. Eastern Time today. You are invited to register to listen to the conference call broadcast live over the Internet with Collin D'Silva, CEO, and Greg Duman, CFO, of Transgenomic.

What:	Transgenomic Updates First Quarter 2002
When:	April 4, 2002, at 5 p.m. ET
Where:	http://www.videonewswire.com/event.asp?id=4106
How:	Live over the Internet -- Simply log on to the web at the address above
Contact:	Mitchell L. Murphy, Investor Relations, Transgenomic, 402-452-5400

If you are unable to participate during the live webcast, the call will be archived on the Web site www.transgenomic.com. To access the replay, click on the link provided under "New!" from 8 p.m. ET on April 4 through Thursday, April 18, 2002, midnight ET, or simply dial 402-220-9184 from any telephone.

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 ("phosphoramidites"), 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 25 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.

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. 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.