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Cepheid Selected as Vendor of Choice by Connecticut Hospital Association Shared Services Program for Molecular MRSA Surveillance Testing

CHA Shared Services Program Represents 164 Acute Care Member Hospitals in

Nine States

SUNNYVALE, Calif., April 3, 2008 /PRNewswire-FirstCall/ -- Cepheid (Nasdaq: CPHD) today announced it has been selected as vendor of choice by the Connecticut Hospital Association (CHA) Shared Services Program for molecular surveillance testing of Methicillin-resistant Staphylococcus aureus (MRSA) with Cepheid's GeneXpert(R) Systems and Xpert(TM) MRSA test. Under the terms of the agreement, which includes a minimum purchase commitment, CHA Shared Services Program will exclusively market Cepheid's GeneXpert Systems and Xpert MRSA test kits to up to 164 of its acute care member hospitals at pre-negotiated prices. The CHA Shared Services Program membership reaches across nine states, including Connecticut, Massachusetts, Maine, Rhode Island, New Hampshire, Vermont, Illinois, Wyoming, and Iowa. Illinois state law mandates surveillance of MRSA in hospitals and four of the other states have introduced legislation to prevent and control health care associated infections.

"This agreement with the CHA Shared Services Program extends access of the GeneXpert System to 164 large and small healthcare providers," said Rob Koska, Cepheid's Senior Vice President of Worldwide Commercial Operations. "The CHA Shared Services Program membership is comprised of hospitals ranging in size from less than 50 beds to well over 800 beds. Cepheid is making it both technically and economically possible for institutions of any size to get the two hour turnaround time -- including sample collection to delivered result -- that is vital to surveillance programs looking to reduce costly and deadly Healthcare Acquired Infections (HAIs)."

MRSA is a growing public health concern, and is cited as the leading cause of death among all HAIs. Cepheid markets Xpert MRSA, a molecular test that runs on the GeneXpert System for the rapid detection of MRSA, both essential components of hospitals' active surveillance and screening programs to reduce infection rates. The modular design of the GeneXpert System makes it suitable for hospitals with modest to high-volume testing needs, and is the only PCR-based, moderate complexity system that doesn't require highly-skilled labor.

On-demand Xpert MRSA results enables healthcare professionals to rapidly identify carriers of the potential pathogen within two hours. As recent studies published in both the Journal of the American Medical Association and the Annals of Internal Medicine demonstrate, true rapid test turnaround time is critical to enabling implementation of proper infection control measures to reduce HAI rates and improve patient care.

"The CHA Shared Services Program is excited to make this new technology available to our membership as they continually improve their infection control programs," said Diane T. Mase, Assistant Vice President, CHA Shared Services Program. "This agreement is a part of our overall goal of consistently delivering solutions for the emerging needs of our members."

About the GeneXpert Molecular Diagnostic Platform

The GeneXpert System is a closed, self-contained, fully-integrated and automated platform that represents a paradigm shift in the automation of molecular analysis, producing accurate results in a timely manner with minimal risk of contamination. The GeneXpert System is the only system to combine on-board sample preparation with real-time PCR (polymerase chain reaction) amplification and detection functions for fully integrated and automated nucleic acid analysis. The system is designed to purify, concentrate, detect and identify targeted nucleic acid sequences thereby delivering answers directly from unprocessed samples. Modular in design, the GeneXpert System has a variety of configurations to meet the broad range of testing demands of any clinical environment. In addition to Xpert MRSA, Cepheid currently markets Xpert(TM) EV for Enteroviral meningitis and Xpert(TM) GBS for Group B streptococcus in the United States.

About Cepheid

Based in Sunnyvale, Calif., Cepheid (Nasdaq: CPHD) is an on-demand molecular diagnostics company that develops, manufactures, and markets fully-integrated systems for genetic analysis in the clinical, industrial and biothreat markets. The company's systems enable rapid, sophisticated genetic testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. The company's easy-to-use systems integrate a number of complicated and time-intensive steps, including sample preparation, DNA amplification and detection, which enable the analysis of complex biological samples in its proprietary test cartridges. Through its strong molecular biology capabilities, the company is focusing on those applications where rapid molecular testing is particularly important, such as identifying infectious disease and cancer in the clinical market; food, agricultural, and environmental testing in the industrial market; and identifying bio-terrorism agents in the biothreat market. See for more information.

This press release contains forward-looking statements that are not purely historical regarding Cepheid's or its management's intentions, beliefs, expectations and strategies for the future, including those relating to product performance and future market opportunities and market size. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the company's current expectations. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to: unforeseen manufacturing problems; regulatory developments and practices regarding testing levels; customer and market acceptance of the product; the failure of products to perform as expected, whether due to manufacturing errors, defects or otherwise; the impact of competitive products and pricing; potentially lengthy sales cycles in some markets; reimbursement rates for the products; and underlying market conditions worldwide. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2007, filed with the Securities and Exchange Commission.

All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information currently available to Cepheid, and Cepheid assumes no obligation to update any such forward-looking statement or reasons why results might differ.

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