Exhibit 99.1

             TRANSGENOMIC COMPLETES EXPENSE REDUCTION PLAN ON TARGET

   Company Experiences Renewed Growth in BioSystems Business Segment in Fourth
            Quarter With Benefits of Expense Reductions Going Forward

    OMAHA, Neb., Feb. 24 /PRNewswire-FirstCall/ -- Transgenomic Inc. (Nasdaq:
TBIO) provided and update today regarding its progress with the expense
reduction plan previously announced in the fourth quarter of 2004. The plan was
designed to refocus the Company on its BioSystems business segment and to align
the Company's cost structure with anticipated market opportunities and revenue
streams. Consistent with the expense reduction objectives and timing disclosed
in November 2004, the Company has essentially completed the workforce reduction
of approximately 60 positions and has closed two domestic research and
development facilities associated with its Nucleic Acids operating segment and
two European field offices. Aggregate charges of approximately $3.5 million
associated with the plan are being recognized in the Company's fourth quarter
2004 operating results. The Company expects to recognize no significant
additional restructuring charges with this plan.

    Collin D'Silva, CEO, stated that the Company's refocusing efforts are
already showing results. According to D'Silva, "Our preliminary view of fourth
quarter BioSystems unit revenues would indicate an increase of well over 15%
above third quarter levels. The results of our refocused efforts, along with
extensions of our WAVE(R) System platform such as the one announced earlier this
week, are encouraging. We hope these efforts will position us to return to
sequential growth in BioSystems unit revenues." D'Silva concluded,
"Strengthening revenues and the cost savings due to restructuring should both
have a significant impact on our progress toward positive cash flow and
profitability."

    The Company will provide additional details regarding fourth quarter and
fiscal 2004 results in its forthcoming financial press release and conference
call.

    About Transgenomic
    Transgenomic provides versatile and innovative research tools and related
consumable products. Transgenomic's BioSystems segment offers its WAVE Systems
and associated consumables. These systems are specifically designed for use in
genetic variation detection and single- and double-strand DNA/RNA analysis and
purification. These systems have broad applicability to genetic research and
molecular diagnostics. To date there have been approximately one thousand
systems installed in over 30 countries around the world. In addition, the
BioSystems segment offers WAVE-based biomarker discovery and validation services
in support of translational research, pre-clinical and clinical studies. Through
its nucleic acids business segment, Transgenomic provides specialty chemicals,
including advanced nucleic acid building blocks and associated reagents used in
the manufacture of synthetic oligonucleotides. 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.



    Forward-Looking Statement
    Certain statements in this press release constitute "forward-looking
statements" of Transgenomic within the meaning of the Private Securities
Litigation Reform Act of 1995, which involve known and unknown risks,
uncertainties and other factors that may cause our actual results to be
materially different from any future results, performance or achievements
expressed or implied by such statements. Forward-looking statements include, but
are not limited to, those with respect to management's current views and
estimates of future economic circumstances, industry conditions, company
performance and financial results, including expectations of continued
strengthening of BioSystems unit revenues and progress toward positive cash flow
and profitability. The known risks, uncertainties and other factors affecting
these forward-looking statements are described from time to time in
Transgenomic'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. All
information in this press release is as of the date of the release and
Transgenomic does not undertake any duty to update this information, including
any forward-looking statements, unless required by law.

SOURCE  Transgenomic Inc.
    -0-                             02/24/2005
    /CONTACT:  Mitchell L. Murphy, +1-402-452-5418, mmurphy@transgenomic.com,
or Robert J. Pogulis, Ph.D., +1-845-782-9617, rpogulis@transgenomic.com, both
of Transgenomic Inc./
    /Web site:  http://www.transgenomic.com /