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Cepheid Reports Second Quarter Revenue of $42.1 Million
Date:7/24/2008

Income (Loss) $(7,526) $(5,241) $(9,376) $(11,394)

Stock compensation expense 3,707 2,298 6,968 4,299

Amortization of acquired inventory

step-up in basis - 106 - 170

Amortization of purchased

intangible assets 286 164 572 368

Non-GAAP measure of Net Income

(Loss) $(3,533) $(2,673) $(1,836) $(6,557)

Basic and Diluted net income (loss)

per share $(0.13) $(0.10) $(0.17) $(0.21)

Stock compensation expense $0.07 $0.05 $0.13 $0.08

Amortization of acquired inventory

step-up in basis $- $- $- $-

Amortization of purchased

intangible assets $- $- $0.01 $0.01

Non-GAAP measure of Net Income (Loss) $(0.06) $(0.05) $(0.03) $(0.12)

Shares used in computing basic and

diluted net income (loss) per share 57,054 55,149 56,603 55,081


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