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LABSCO to Distribute Cepheid GeneXpert® Systems and Tests
Date:5/19/2011

LOUISVILLE, K.Y., May 19, 2011 /PRNewswire/ -- Laboratory Supply Company (LABSCO), the largest privately held supplier of diagnostic instrumentation and clinical laboratory products to hospitals, physician office laboratories, reference labs and other non-acute care settings in the United States, announced today it has entered into an agreement with Cepheid (NASDAQ: CPHD) to become Cepheid's exclusive distribution partner for its GeneXpert® Systems and tests in the US acute care hospital market for institutions with less than 150 beds.  The agreement also gives LABSCO non-exclusive rights to distribute Cepheid's products to all care settings in the non-hospital market.

"We are very pleased to represent Cepheid's GeneXpert® Systems and tests as we feel that they represent the leading edge in molecular diagnostics solutions," said Steve Nielsen, LABSCO's Chairman and CEO. "We want to be the 'go to company' for high-growth diagnostics systems manufacturers like Cepheid who want to leverage our dedicated Diagnostics Systems Specialist team to get to the segments of the market that they don't serve directly.  We will continue to invest in this area and our objective is to attract the finest sales talent in the industry," added Nielsen.  "We believe that our focus on the small hospital, physician office laboratory (POL) and other alternate care settings is attractive to these manufacturers and unique in the industry."

"There are more than 3900 US hospitals below 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 Commercial Operations. "We will continue to focus our direct sales efforts on the approximate 210
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