Exhibit 99.1

                                  PRESS RELEASE

Friday, September 23, 2005

COMPANY PRESS RELEASE

                 TRANSGENOMIC ANNOUNCES OVER $15 MILLION PRIVATE
                            PLACEMENT OF COMMON STOCK

OMAHA, Neb., Sept. 23 -- Transgenomic Inc. (Nasdaq: TBIO) today announced that
it has received commitments from a group of institutional investors led by
Lehman Brothers to purchase 15 million shares of the Company's common stock
through a private placement priced at $1.01 per share. Additionally, the Company
will issue to these investors warrants to purchase six million shares. The
transaction is subject to shareholder approval and certain customary conditions.
The transaction is expected to close by October 31, 2005. Net proceeds from the
offering will be used to repay the Company's current indebtedness with Laurus
Master Fund, Ltd. of approximately $9.0 million and for general working capital
needs.

The private placement shares will be issued under Regulation D of the Securities
Act of 1933, as amended. The Company has committed to prepare and file a
registration statement covering the resale of the common stock purchased by
these investors within 30 days of closing and will use its best efforts to
obtain effectiveness no later than 90 days after closing. The exclusive
placement agent for the transaction was Oppenheimer & Co.

Collin D'Silva, CEO, said that, "this private placement strengthens our balance
sheet and better positions us to pursue the opportunities we've identified
within our BioSystems business."

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 the viability of future opportunities and having the wherewithal to
pursue them. 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.

For confirmation of release or further information, please contact:

         Paul G. Henning
         Cameron Associates
         212-554-5462
         Investor Contact
         phenning@cameronassoc.com

         Robert J. Pogulis, Ph.D.
         Transgenomic Inc.
         845-782-9617
         rpogulis@transgenomic.com

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