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Cepheid Reports Second Quarter Revenue of $42.1 Million

and non-GAAP gross margin

on product sales was 43%, which compares to 41% and 42% in the second

quarter of fiscal 2007.

-- Cash, cash equivalents and investments increased to $46.8 million as

of June 30, 2008.

-- DSOs improved to 40 days.

Business Outlook

For the fiscal year ending December 31, 2008, the Company expects:

-- Total revenue to be in the range of $173 to $177 million, of which

product sales are expected to be in the range of $164 to $167 million.

o Xpert MRSA test sales are expected to be in the range of $52 to

$55 million.

-- Net loss for 2008 is expected to be in the range of $20 to $22

million, or $(0.35) to $(0.38) per share.

-- On a non-GAAP basis, net loss is expected to be in the range of $4 to

$6 million, or $(0.07) to $(0.10) per share.

-- Non-GAAP net loss excludes approximately $15 million related to stock

compensation expense and $1 million related to the amortization of

acquired intangibles.

Accessing Cepheid's Q208 Earnings Conference Call

The company will host a management presentation at 1:30 p.m. Pacific Time on Thursday, July 24, 2008 to discuss the results. To access the live webcast, please visit Cepheid's website at at least 15 minutes before the scheduled start time to download any necessary audio or plug-in software. A replay of the webcast will be available shortly following the call and will remain available for at least 90 days.

Interested participants and investors may also listen to the live teleconference call by dialing 866-825-1692 (domestic) or 617-213-8059 (international), and entering participant code 92219619. A replay will be available for seven days beginning at 3:30 p.m. Pacific Time. Access numbers for this replay are 888-286-8010 (domestic) an

SOURCE Cepheid
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