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Cepheid Reports 2009 First Quarter Results
Date:4/23/2009

3,330 3,524 Cash and cash equivalents at beginning of period 23,478 16,476 ------ ------ Cash and cash equivalents at end of period $26,808 $20,000 ======= =======

                                     CEPHEID

                     RECONCILIATION OF GAAP TO NON-GAAP MEASURES
                        (in thousands, except per share data)

                                                        Three Months Ended
                                                             March 31,
                                                        ------------------
                                                           2009    2008
                                                          ------   ------

    Total product sales                                  $36,588  $41,920
    Total revenues                                       $38,767  $44,833

    Cost of product sales                                $20,511  $22,986
      Stock compensation expense                            (354)    (350)
      Amortization of purchased intangible assets           (324)    (241)
                                                          ------   ------
    Non-GAAP measure of cost of product sales            $19,833  $22,395

    Gross margin on product sales per GAAP                    44%      45%
    Gross margin on product sales per non-GAAP                46%      47%

    Research and development                             $10,338   $9,898
      Amortization of purchased intangible assets            (24)     (24)
      Stock compensation expense                          (1,305)  (1,263)
                                                          ------   ------
    Non-GAAP measure of cost of research and
     development                        
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