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Cepheid Signs Group Purchasing Contract With Premier Healthcare Alliance, One of the Largest U.S. Group Purchasing Organizations

Tuesday, May 13, 2008 General News J E 4
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SUNNYVALE, Calif., May 12 Cepheid (Nasdaq: CPHD)today announced it has signed a group purchasing contract with Premier, Inc.,one of the largest U.S. Group Purchasing Organizations (GPOs) with more than1,500 participating hospitals and 42,000 other healthcare sites. Inconjunction with this agreement, Cepheid has also signed a preferred vendoragreement with the Western North Carolina Health Network (WNCHN), acollaboration of 53 acute care hospitals that utilize Premier as their GPO.Under the terms of the contract, Premier and WNCHN customers can takeadvantage of Cepheid's GeneXpert(R) System and Xpert(TM) MRSA tests atpre-negotiated prices.

"Integrated Delivery Networks (IDNs) within the Premier network haverecognized the value and benefit that the GeneXpert System is bringing totheir initiatives to better manage the Healthcare Acquired Infections (HAI)problem," said Rob Koska, Cepheid's Senior Vice President of WorldwideCommercial Operations. "We look forward to working with these memberinstitutions to ensure the success of their infection control programs."

MRSA is recognized as a growing public health concern, cited as a leadingcause of HAIs. Infection rates have increased every year since 1970. XpertMRSA test results are currently available in approximately 70 minutes, therebyenabling rapid identification of carriers of the pathogen in less than 2 hoursfrom the time of patient sampling to delivering test results to the floor. Theavailability of the Xpert MRSA test and the GeneXpert System is expected toenable Premier hospitals to implement more efficient infection controlmeasures, leading to lower HAI rates and improved patient care.

On-demand Xpert MRSA results enable healthcare professionals to rapidlyidentify MRSA colonized patients entering the hospital population, therebyreducing risk of potential transmission. As recent studies published in boththe Journal of the American Medical Association and the Annals of InternalMedicine demonstrate, true rapid test turnaround time is critical to reachingmaximum results with a fully implemented infection control plan to reduce HAIrates and improve patient care.

About the GeneXpert Molecular Diagnostic Platform

The GeneXpert System is a closed, self-contained, fully-integrated andautomated platform that represents a paradigm shift in the automation ofmolecular analysis, producing accurate results in a timely manner with minimalrisk of contamination. The GeneXpert System is the only system to combineon-board sample preparation with real-time PCR (polymerase chain reaction)amplification and detection functions for fully integrated and automatednucleic acid analysis. The system is designed to purify, concentrate, detectand identify targeted nucleic acid sequences thereby delivering answersdirectly from unprocessed samples. Modular in design, the GeneXpert System hasa variety of configurations to meet the broad range of testing demands of anyclinical environment.

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 t
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