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Cepheid Appoints LABSCO as US Small Hospital Distributor
Date:5/18/2011

SUNNYVALE, Calif., May 18, 2011 /PRNewswire/ -- Cepheid (NASDAQ: CPHD) today announced it has entered into an agreement with LABSCO (www.labsco.com), the largest privately held distributor of clinical products in the United States, to become its US distribution partner for Cepheid's GeneXpert® Systems and tests. The agreement grants LABSCO exclusive US distribution rights to the acute care hospital market for institutions with less than 150 beds. The agreement does not presently include the higher throughput GeneXpert Infinity System.

"There are more than 3900 US hospitals with less than 150 beds which have not been a primary focus of Cepheid to date. The decision to engage on a nationwide basis with LABSCO is in line with one of our strategic growth objectives directed at expanding our reach within the US market," said Nico Arnold, Cepheid's Executive Vice President of Worldwide Operations. "We will continue to focus our direct sales efforts on the approximately 2100 hospitals that have 150 beds and above. Based on our positive experience to date with LABSCO and in reviewing their strong resource commitment to Cepheid we are excited to be moving to national implementation of our distribution relationship. We feel strongly that our shared passion for revolutionizing molecular diagnostics through a customer-first approach will make for an ideal partnership."

In addition to the exclusive distribution rights, the agreement also gives LABSCO non-exclusive rights to the non-acute care non-hospital market, including surgical centers affiliated with hospitals, independent surgical centers, physician's office laboratories, group practices, and nursing homes.

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