Wednesday January 30, 2002

COMPANY PRESS RELEASE

Transgenomic Inc. Reports Continued Strong Revenue Growth in Fourth Quarter and Fiscal Year 2001

Projects Profitability in Fourth Quarter 2002

Quarterly and Year-to-Date Life Sciences Revenues Up 51 and 62 Percent, Respectively, From Comparable Periods in 2000

OMAHA, Neb., and SAN JOSE, Calif., Jan. 30 / -- Transgenomic, Inc. (Nasdaq: TBIO) today announced financial results for the quarter and fiscal year ended December 31, 2001. The company's historical financial results are presented in the tables attached.

Fourth Quarter 2001

Fourth quarter revenues increased 51 percent to $10.7 million in 2001 from $7.1 million in 2000. The net loss for the quarter was $2.7 million, or $0.12 per share. The net loss for the quarter, excluding goodwill amortization and acquisition related expenses associated with the Annovis acquisition, was $2.4 million, or $0.10 per share. This compares to a net loss of $1.0 million, or $0.05 per share, in 2000, which excludes a one-time gain on sale of product line assets. With $10.7 million in fourth quarter revenues, the company continues the trend of delivering on the commitment to sequential quarterly revenue growth.

Fiscal Year Ended December 31, 2001

For the fiscal year ended December 31, 2001, Life Sciences revenues increased 62 percent to $38.5 million in 2001 from $23.7 million in 2000. The net loss for 2001 was $7.4 million, or $0.33 per share. The net loss for the year, excluding goodwill amortization and acquisition related expenses associated with the Annovis acquisition, was $6.5 million, or $0.29 per share. This compares to a Life Sciences net loss of $8.6 million, or $0.52 per share, in 2000, which excludes the one-time gain on sale of product line assets. The company's cash and investments at the end of the year totaled $43.5 million.

Comment and Outlook

"Overall, we feel we made significant progress in 2001 on our path to profitability," said Collin D'Silva, CEO. "We are pleased to have achieved during the year a number of key objectives, including introducing two new WAVE® System models along with new applications and new consumables for the WAVE System, and our entry into the synthetic nucleic acid business with the acquisition of Annovis." D'Silva continued, "Our fourth quarter bio-instruments revenues improved significantly over the third quarter. We expect continuing strong demand for our bio-instrument products, helped in part by the introduction this quarter of the newest member of our WAVE product line, the WAVE-MD™ Mutation Detection System. We are also enthusiastic about the future prospects of the synthetic nucleic acids business. This product line positions us to participate in the higher value diagnostic and therapeutic markets. As we mentioned in the press release earlier this month, we expect new manufacturing equipment to be integrated by the end of this quarter, which should address certain manufacturing difficulties encountered last quarter. Further capacity expansion plans are also in process to help support the strong growth in demand anticipated."

"We expect our total revenues to increase in the range of 45-55 percent this year," commented Greg Duman, CFO. "The growing synthetic nucleic acids business is a significant component in meeting the company's overall revenue growth targets for 2002. The resulting levels of revenue will allow us to deliver a significant improvement in loss per share in the range of $0.09 to $0.11 for 2002 as compared to the 2001 loss per share of $0.33." Duman added, "Our 2002 plans project profitability in the fourth quarter of this year."

Earnings Call

The Company will host a live broadcast of its fourth quarter 2001 financial results via conference call over the Internet on Wednesday, January 30, at 5 p.m. Eastern time. To listen to the Webcast, investors should log on to http://www.videonewswire.com/event.asp?id=2787 and follow the instructions listed. A link to this site will also be located on the Company's Investor Relations Web page at http://www.transgenomic.com/Pages/corporateinvestor.html. An archived recording of the conference call will be available and can be accessed via the web using the same links listed above for 90 days after the call. Investors can also listen to a replay via telephone from 8 p.m. ET on January 30 through Wednesday, February 13, 2002, midnight ET. Simply dial 402-530-9311 from any telephone.

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 ("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.

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. 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.

TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands, except per share amounts)

LIFE SCIENCES STATEMENT OF OPERATIONS

NOTE:  The Life Sciences Statement of Operations reflects the sale of our non-Life Sciences product line as if the sale had occurred on January 1, 2000.

            Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share losses may not equal the year-to-date loss per share.

TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands, except per share amounts)

HISTORICAL STATEMENTS OF OPERATIONS

TRANSGENOMIC, INC.
SUMMARY FINANCIAL RESULTS
(In thousands)

BALANCE SHEET

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