Transgenomic Reports Second Quarter 20...(g items: a realized gain of $937500from ...)

Net sales from continuing operations were $6.3 million during the second quarters of 2008 and 2007. The second quarter of 2008 reflected a 52% increase in net sales from the laboratory services segment and a 7% decrease in instrument-related net sales versus the same period last year. Gross profit from continuing operations during the second quarter of 2008 was $3.7 million, or 60 %, compared to $3.4 million, or 54%. Gross profit margin of 45% from the Laboratory Services product line in the second quarter of 2008 was up from 29% in the year ago period and was the primary contributor to the year-over-year improvement in overall profit margin.

Operating expenses from continuing operations were $3.7 million during the second quarter of 2008, compared to $4.2 million during the same period of 2007. The 2007 period included $624,000 of restructure charges. Foreign currency translation adjustments decreased operating expenses by $278,000 in 2008. The foreign currency impact in the second quarter of 2007 was immaterial. Offsetting this was increased sales costs. Cash and cash equivalents totaled $5.7 million at June 30, 2008 and December 31, 2007.

Six Months Ended June 30, 2008

The Company reported net income of $223,000, or $0.00 per share, for the six months ended June 30, 2008, compared to a net loss of $970,000, or $0.02 per share, during the comparable period of 2007. Net income for the six months ended June 30, 2008 was comprised of income from continuing operations of $223,000, or $0.00 per share. The net loss for the six months ended June 30, 2007 was comprised of a loss from continuing operations of $1.0 million, or $0.02 per share, and income from discontinued operations of $66,000, or $0.00
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