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Transgenomic Introduces SURVEYOR(R) Endonuclease Adaptor-Ligated Libraries (SEAL) for Determining Whole Genome Sequence Variation
Date:6/17/2008

High Throughput Technology Identifies DNA Variations Between a Reference

Genome and Test Genome

OMAHA, Neb., June 17 /PRNewswire-FirstCall/ -- Transgenomic (OTC Bulletin Board: TBIO) today announced that it is developing SURVEYOR Endonuclease Adaptor-ligated Libraries (SEAL). A cost-effective and high throughput enabling technology for whole genome analysis, SEAL identifies DNA variations between a reference genome and a test genome. SEAL is designed to recognize point mutations and small insertion/deletions at 100 to 1000 times lower sequencing intensity than current methods, and thus has the potential to reduce the cost of whole genome analysis of such variations to under $10,000.

Dr. Eric Kaldjian, Chief Scientific Officer of Transgenomic, stated, "With its potential for low-cost assessment of variation in the human genome, SEAL could transform the genomic approach to patient-tailored prevention and treatment, as well as accelerate our understanding of the mechanisms of complex diseases. It should be a useful complement to whole genome sequencing results by confirming sequence variations. In addition, SEAL's capacity to compare drug-resistant and wild-type strains could be utilized for deep and rapid investigation of sequence-associated drug resistance mechanisms in human pathogens, as well as the discovery of novel antibiotic targets."

SEAL was invented by Dr. Gary Gerard and colleagues in Transgenomic's Gaithersburg Laboratories, evolving from the Company's SURVEYOR Nuclease technology, which is highly sensitive for detecting genetic variations. By focusing analysis solely on regions of DNA variation, SEAL eliminates the sequencing of vast amounts of non-variant DNA, but is not limited to assessment of known common single nucleotide polymorphisms (SNPs). It thus bridges the current technology gap between haplotyping of known SNPs and deep high-throughput DNA sequencing.

Craig Tuttle, Chief Executive Officer and President of Transgenomic commented, "We expect SEAL to have a significant impact on the use of DNA sequencing within pharmacogenomic assessments for personalized medicine. A whole genome catalog of sequence variations below $10,000 is a realistic goal based on our prediction that SEAL should identify point mutations and small insertion/deletions at 100 to 1000 times lower sequencing intensity than current methods."

About SEAL

SURVEYOR Endonuclease Adaptor-ligated Libraries (SEAL) is a cost-effective and high throughput enabling technology for whole genome analysis under development by Transgenomic. It identifies DNA variations between a reference genome and a test genome. Using a linker that attaches an identification tag of known sequence to the ends cleaved by the SURVEYOR Nuclease, SEAL generates a library of genetic variations present within a DNA sample relative to a reference sample, allowing recognition of both the sequence of the variant nucleotide and the sequence context of the mutation. The library can be sequenced directly via standard or massively parallel systems, queried at any desired genetic locus by PCR amplification or archived for subsequent multi-query analysis.

About SURVEYOR

SURVEYOR Mutation Detection Kits and the SURVEYOR Check-It Kit provide reagents and protocols for the detection of mutations in DNA. All of these kits are based on the use of SURVEYOR Nuclease, a mismatch-specific endonuclease shown to recognize and cleave all types of mismatches arising from the presence of single nucleotide polymorphisms (SNPs) or from small insertions or deletions. The protocol is based on the generation of PCR products that are subsequently hybridized to generate mismatches in heteroduplexed DNA which is then treated and cleaved by SURVEYOR Nuclease. SURVEYOR Nuclease can detect genetic variations in samples with high sensitivity.

About Transgenomic

Transgenomic (OTC Bulletin Board: TBIO) is a global biotechnology company specializing in high sensitivity genetic variation and mutation analysis. The Company provides products and services in the fields of pharmacogenomics and pharmacogenetics.

Product offerings include the WAVE(R) DHPLC Systems and associated consumables specifically designed for use in genetic variation detection and single- and double-strand DNA/RNA analysis and purification. With broad applicability to genetic research, over 1600 systems have been shipped to customers in more than 30 countries. The SURVEYOR Mutation Detection Kits and SURVEYOR Check-It Kit provide reagents and protocols are for the detection of mutations in DNA. In addition, HANABI automated chromosome harvesting systems improve laboratory productivity with consistent quality compared to manual methods.

Service offerings include the Transgenomic Clinical Reference Laboratory, which provides reference laboratory services specializing in molecular diagnostics including Mitochondrial Disorders, Oncology and Hematology, Molecular Pathology and Inherited Diseases. Transgenomic Genomic Research Services is a CRO for pharmacogenomic, translational research and clinical trials.

FORWARD LOOKING STATEMENTS:

This document contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future results of operation or future financial performance, including, but not limited to the following statements: the Company's ability to develop, obtain regulatory approval and commercialize its clinical and preclinical product candidate programs. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, which may cause our actual results to be materially different from these forward-looking statements. Factors which may significantly change or prevent our forward looking statements from fruition include that we may be unsuccessful in developing any products or acquiring products; that our technology may not be validated as we progress further and our methods may not be accepted by the scientific community; that we are unable to retain or attract key employees whose knowledge is essential to the development of our products; that unforeseen scientific difficulties develop with our process; that our patents are not sufficient to protect essential aspects of our technology; that competitors may invent better technology; that our products may not work as well as hoped or worse, that our products may harm recipients; and that we may not be able to raise sufficient funds for development or working capital when we require it. As well, our products may never develop into useful products and even if they do, they may not be approved for sale to the public. We caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. Certain of these risks, uncertainties, and other factors are described in greater detail in our filings from time to time with the Securities and Exchange Commission (the "SEC"), which we strongly urge you to read and consider, including our Form 10-Q filed with the SEC on May 8, 2008 and our Form 10-K filed with the SEC on March 28, 2008, all of which are available free of charge on the SEC's web site at http://www.sec.gov. Subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in our reports filed with the SEC. We expressly disclaim any intent or obligation to update any forward-looking statements.

Trademarks and Copyright

"TRANSGENOMIC," "SURVEYOR", "WAVE", the globe logo and "the power of discovery" are registered trademarks of Transgenomic, Inc. (C)2008 Transgenomic, Inc. All rights reserved.


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