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Cepheid Accelerates Direct Sales Channel in UK With Pending Acquisition of Medical Distributor Stretton Scientific

Tuesday, November 4, 2008 General News
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SUNNYVALE, Calif., Nov. 3 Cepheid (Nasdaq: CPHD)today announced that it has entered into a definitive agreement to acquireStretton Scientific Limited, a privately held distributor of scientificdiagnostic, measuring and monitoring equipment based in Stretton, England.Stretton Scientific currently distributes Cepheid's SmartCycler(R) System,among other diagnostic and life science products, to a broad group of medicalcustomers including the National Health Service (NHS), medical universitiesand commercial customers.
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"Consistent with Cepheid's strategy to invest in sales and marketingcapabilities to support national market development, the acquisition ofStretton Scientific is expected to augment our newly established UK-baseddirect sales team," said John Bishop, Cepheid's Chief Executive Officer."With our industry-leading GeneXpert(TM) System, Cepheid is committed tosupporting the UK's efforts to minimize negative patient outcomes and reducefinancial costs associated with HAIs, and we are very pleased to be buildingout our infrastructure to support this rapidly expanding opportunity."
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Under the terms of the agreement, Cepheid will pay approximately 1.2million pounds Sterling in cash to acquire Stretton Scientific. Thetransaction is expected to close in early November, 2008, subject to customaryclosing conditions, and it is not expected to have a material impact onCepheid's 2008 fourth quarter results.

About Cepheid

Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is an on-demandmolecular diagnostics company that develops, manufactures, and marketsfully-integrated systems for genetic analysis in the clinical, industrial andbiothreat markets. The company's systems enable rapid, sophisticated genetictesting for organisms and genetic-based diseases by automating otherwisecomplex manual laboratory procedures. The company's easy-to-use systemsintegrate a number of complicated and time-intensive steps, including samplepreparation, DNA amplification and detection, which enable the analysis ofcomplex biological samples in its proprietary test cartridges. Through itsstrong molecular biology capabilities, the company is focusing on thoseapplications where rapid molecular testing is particularly important, such asidentifying infectious disease and cancer in the clinical market; food,agricultural, and environmental testing in the industrial market; andidentifying bio-terrorism agents in the biothreat market. Seehttp://www.cepheid.com for more information.

This press release contains forward-looking statements that are not purelyhistorical regarding Cepheid's or its management's intentions, beliefs,expectations and strategies for the future, including those relating to thefinancial impact of the proposed acquisition, the benefits of the proposedacquisition, including future market size and growth in Cepheid's U.K.business. Because such statements deal with future events, they are subject tovarious risks and uncertainties, and actual results could differ materiallyfrom the company's current expectations. Factors that could cause actualresults to differ materially include risks and uncertainties such as thoserelating to: our ability to successfully integrate operations; our ability tosuccessfully obtain regulatory approvals for additional products and tointroduce new products in the clinical market; risks related to expandedinternational operations; customer market acceptance of new products; thefailure of products to perform as expected, whether due to manufacturingerrors, defects or otherwise; the ability of Cepheid to retain and motivatekey employees of the acquired company; incurrence of unexpected liabilities inconnection with the acquisition; competition; potentially lengthy sales cyclesin some markets; reimbursement rates for the products; and the impact ofgeneral economic conditions worldwide. Readers should also refer to thesection entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for2007 and in its most recent quarterly report on Form 10-Q, each filed with theSecurities and Exchange Commission.

All forward-looking statements and reasons why results might differincluded in this release are made as of the date of this press release, basedon information currently available to Cepheid, and Cepheid assumes noobligation to update any such forward-looking statement or reasons why resultsmight differ.CONTACTS: For Media Inquiries: For Investor Inquiries: Jared Tipton Jacquie Ross Cepheid Corporate Communications Cepheid Investor Relations 408-400-8377 408-400-8329 [email protected] [email protected]

SOURCE Cepheid
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