Exhibit 99.1

 TRANSGENOMIC INC. BEGINS TRADING ON THE NASDAQ CAPITAL MARKET AND IS GRANTED
    AN ADDITIONAL 180 DAYS TO REGAIN COMPLIANCE WITH THE $1.00 MINIMUM BID
                                   REQUIREMENT

    OMAHA, Neb., Aug. 16 /PRNewswire-FirstCall/ -- On February 15, 2006, The
Nasdaq Stock Market ("Nasdaq") notified Transgenomic, Inc. (Nasdaq: TBIO) (the
"Company") that the bid price of its common stock had closed at less than $1.00
per share over the previous 30 consecutive business days, and, as a result, the
Company did not comply with Nasdaq's minimum bid requirement. Nasdaq provided
the Company with a grace period of 180-calendar days, or until August 14, 2006,
to regain compliance.

    The Company did not regain compliance, and on July 28, 2006, it applied to
transfer the listing of its common stock from the Nasdaq Global Market to the
Nasdaq Capital Market (the "Capital Market"). The application was approved on
August 7, 2006, and on August 10, 2006, the Company's common stock began trading
on the Capital Market.

    On August 15, 2006, the Company was notified by Nasdaq that it met all
initial inclusion criteria for the Capital Market except for the minimum bid
price. Therefore, Nasdaq provided the Company with an additional 180 calendar
day period, or until February 12, 2007, to regain compliance. The Company may
regain compliance with the minimum bid price requirement if, at any time before
February 12, 2007, the bid price of the Company's common stock closes at $1.00
per share or more for a minimum of ten consecutive business days.

    About Transgenomic

    Transgenomic is a global biotechnology company that provides unique products
and services for automated high sensitivity genetic variation and mutation
analysis. Their offerings include systems, products, discovery and laboratory
testing services to the academic and medical research, clinical laboratory and
pharmaceutical markets in the fields of pharmacogenomics and personalized
medicine. Specific offerings include Wave(TM) DHPLC systems, reagents,
consumables and assay kits, Hanabi automated cytogenetics systems, and
Transgenomic Discovery and CLIA Lab Services. To date there have been over 1,200
Wave systems installed in over 600 customer sites in over 35 countries and
approximately 1,500 publications utilizing Transgenomic products or services.
Transgenomic Discovery and Lab Services utilize their technology and expertise
to provide a menu of mutation scanning tests for over 700 cancer-associated
genes and more than 60 validated diagnostic tests to meet the needs of
pharmaceutical and biotech companies, research and clinical laboratories,
physicians and patients. For more information about the innovative systems,
products and services offered by Transgenomic, please visit:
www.transgenomic.com.

    Transgenomic Cautionary Statements

    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 ability of the Company to grow
its involvement in the diagnostic products and services markets. 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-                             08/16/2006
    /CONTACT:  Mike Summers of Transgenomic, Inc., +1-402-452-5446,
msummers@transgenomic.com/
    /Web site:  http://www.transgenomic.com /
    (TBIO)