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Cepheid Reports Fourth Quarter and Full Year 2007 Results
Date:2/28/2008

th quarter 2006. Net loss for the fourth quarter of 2007, excluding stock compensation expense and the amortization of acquired intangibles, was $1.2 million, or $0.02 per share, as compared to $6.1 million, or $0.11 per share, for the fourth quarter of 2006.

Net loss for the full year 2007, including stock compensation expense and the amortization of acquired intangibles, was approximately $21.4 million, or $0.39 per share, as compared to a net loss of approximately $26.0 million, or $0.50 per share, for the full year 2006. Net loss for 2007, excluding stock compensation expense and the amortization of acquired intangibles, was $9.3 million, or $0.17 per share, as compared to $18.6 million, or $0.36 per share, for the full year 2006.

As of December 31, 2007, Cepheid held approximately $44.0 million in cash, cash equivalents and marketable securities, an increase of approximately $2.7 million from the September 30, 2007 balance.

This news release contains certain non-GAAP financial measures. A reconciliation of these and other measures to the comparable GAAP measures is included in this release and in the attached financial tables.

Fourth Quarter 2007 and Recent Business Highlights:

In December 2007, Cepheid launched in Europe two new diagnostic tests designed to enable simultaneous rapid detection of two leading causes of hospital and community-acquired infections -- Methicillin Resistant Staphylococcus aureus (MRSA) and Staphylococcus aureus (SA). The tests, Xpert(TM) MRSA/SA-Blood Cultures (BC) and Xpert(TM) MRSA/SA-Skin and Soft Tissue Infection (SSTI), deliver results in approximately 50 minutes, which is particularly critical as every hour counts in helping healthcare professionals to rapidly treat and prevent sepsis caused by infection. Both products utilize a multiplex molecular protocol for potentially avoiding clinically false-positive MRSA test results.

In November 2007, Cepheid signed a group purchasing agreement
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