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Cepheid GeneXpert(R) System and Xpert(TM) MRSA Selected for up to 11 Victoria, Australia Hospitals in Rollout of 'Start Clean' Strategy
Date:7/28/2008

State of Victoria, Australia 'Start Clean' Strategy Requires Public

Reporting of HAIs in all 76 Public Hospitals by End of 2009

SUNNYVALE, Calif., July 28 /PRNewswire-FirstCall/ -- Cepheid (Nasdaq: CPHD) today announced that the State of Victoria has selected Cepheid's GeneXpert(R) System and Xpert(TM) MRSA test for screening of high risk patients in up to 11 hospitals. Selection of these systems is part of ongoing efforts to comply with the rollout of the 5-year 'Start Clean' Victorian Infection Control Strategy, introduced by the Victorian Department of Human Services in 2007. To maintain compliance, all 76 Victorian public hospitals will need to provide public reporting of Healthcare Associated Infections (HAIs) by the end of 2009, according to the timelines published in the infection control strategy.

On-demand Xpert MRSA results enable Australian healthcare professionals to rapidly identify MRSA colonized patients entering the hospital population, thereby reducing risk of potential transmission. As quoted from the Start Clean Victorian Infection Control Strategy 2007-2011 document:

"Recent studies show that rapid diagnosis of MRSA colonization from screening swabs using PCR technology can reduce the time taken for detection of a carrier from days to hours. This is an important advance for the appropriate use of resources for the isolation and cohorting of patients."

"It is encouraging to note that Australian officials are recognizing the unique benefit of the GeneXpert System in providing clinically useful results on-demand," said John Bishop, Cepheid's Chief Executive Officer. "Faster time to result not only improves patient management, but also optimizes utilization of hospital resources."

The 'Start Clean' strategy introduced a pay for performance concept last year that began linking federal funding to compliance timelines for hospitals. The compliance strategy includes guidelines for screening, public reporting of HAIs, judicious use of antibiotics, hospital cleanliness and hand hygiene.

In addition to the current recommendation for the screening of all high-risk patients, as defined by the 2005 multi-resistant organism consensus conference, the 'Start Clean' strategy also allocates funds to help hospitals implement systems to rapidly diagnose MRSA and other significant organisms.

Other Australian states are closely monitoring the rollout of Victoria's 'Start Clean' strategy. Further trials are underway and are expected to be complete by the end of 2008. This may lead to the rollout of a similar strategy in other states.

About the GeneXpert Molecular Diagnostic System

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.

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 http://www.cepheid.com 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 utility, and future market opportunities in other states in Australia and timing of other trials. 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: regulatory developments and practices regarding testing levels and best practices regarding testing and screening worldwide, and in Australia and the State of Victoria in particular; customer and market acceptance of the product; unforeseen manufacturing problems; 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; the fact that there are no commitments to purchase any products by hospitals in Victoria or elsewhere in Australia, and there can be no assurance that they will do so in the future; and underlying market conditions. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2007 and in its most recent quarterly report on Form 10-Q, each 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.

CONTACTS:

For Media Inquiries: For Cepheid Investor Inquiries:

Jared Tipton Jacquie Ross

Cepheid Corporate Communications Cepheid Investor Relations

408-400-8377 Tel: (408) 400 8329

jared.tipton@cepheid.com jacquie.ross@cepheid.com


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