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

CEPHEID

CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

Three Months Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

Revenues:

Instrument sales $15,597 $6,882 $47,739 $22,737

Reagent and disposable sales 21,268 14,721 68,793 59,666

Total product sales 36,865 21,603 116,532 82,403

Contract revenues 2,746 1,638 8,554 3,913

Grant and government sponsored

research revenue 816 341 4,387 1,036

Total revenues 40,427 23,582 129,473 87,352

Costs and operating expenses:

Cost of product sales 21,452 12,443 69,174 48,800

Collaboration profit sharing 3,299 3,507 12,256 14,974

Research and development 8,717 6,682 31,449 23,886

In-process research and development - - - 139

Selling, general and

administrative 12,692 7,257 41,081 26,470

Expense for patent related matter - 3,350 - 3,350

Total costs and operating

expenses 46,160 33,239 153,960 117,619

Loss from operations (5,733) (9,657) (24,487) (30,267)

Other income, net 658 1,356 3,277 4,282

Net loss before provision for income

taxes (5,075) (8,301) (21,210) (25,985)

Provision for income taxes (213) - (213) -

Net loss $(5,288) $(8,301) $(21
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