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Cepheid Accelerates Direct Sales Channel in UK With Pending Acquisition of Medical Distributor Stretton Scientific
Date:11/3/2008

SUNNYVALE, Calif., Nov. 3 /PRNewswire-FirstCall/ -- Cepheid (Nasdaq: CPHD) today announced that it has entered into a definitive agreement to acquire Stretton Scientific Limited, a privately held distributor of scientific diagnostic, 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 medical customers including the National Health Service (NHS), medical universities and commercial customers.

"Consistent with Cepheid's strategy to invest in sales and marketing capabilities to support national market development, the acquisition of Stretton Scientific is expected to augment our newly established UK-based direct sales team," said John Bishop, Cepheid's Chief Executive Officer. "With our industry-leading GeneXpert(TM) System, Cepheid is committed to supporting the UK's efforts to minimize negative patient outcomes and reduce financial costs associated with HAIs, and we are very pleased to be building out our infrastructure to support this rapidly expanding opportunity."

Under the terms of the agreement, Cepheid will pay approximately 1.2 million pounds Sterling in cash to acquire Stretton Scientific. The transaction is expected to close in early November, 2008, subject to customary closing conditions, and it is not expected to have a material impact on Cepheid's 2008 fourth quarter results.

About Cepheid

Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is an on-demand molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for genetic analysis in the clinical, industrial and biothreat markets. The company's systems enab
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