Many statistical methods often fail to identify biologically meaningful biomarkers related to a specific disease under study from expression data alone. In this paper, we develop a novel strategy, namely knowledge-driven multi-level independent component analysis (ICA), to infer regulatory signals and identify biologically relevant biomarkers from microarray data. Specifically, based on multi-level clustering results and partial prior knowledge, we apply ICA to find stable disease specific linear regulatory modes and then extract associated biomarker genes. A statistical test is designed to evaluate the significance of transcription factor enrichment for extracted gene set based on motif information. The experimental results on an Rsf-1 induced microarray data set show that our knowledgedriven method can extract more biologically meaningful biomarkers with significant enrichment of transcription factors related to ovarian cancer compared to other gene selection methods with/without prior knowledge.