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Cepheid Announces Preliminary 2008 Fourth Quarter and Full Year Revenue Results

January 13, 2009

SUNNYVALE, Calif., Jan. 13 /PRNewswire-FirstCall/ — Cepheid
(Nasdaq: CPHD) today announced preliminary revenue results for its 2008 fourth
quarter and full year ended December 31, 2008.

Based on the company’s preliminary financial results, total revenue for
the fourth quarter of 2008 is expected to be approximately $38 million, with
total product revenue of approximately $36 million. Total revenue for the
full year ended December 31, 2008 is expected to be approximately $170
million
, with total product revenue of approximately $159 million. Core
clinical revenue is expected to be approximately $25 million for the fourth
quarter of 2008, and approximately $91 million for the full year.

While detailed financial results are not yet available, the company
expects to confirm 99 GeneXpert(R) system and 598 module placements in the
fourth quarter. 45 of the GeneXpert placements and 426 modules were in North
America
. For the full year, GeneXpert system placements are expected to be
458 and module placements are expected to be 2,518.

Xpert(TM) MRSA test revenue is expected to be approximately $14 million
for the fourth quarter of 2008, which compares to Xpert MRSA test revenue of
approximately $5 million reported in the fourth quarter of 2007. For the full
year, Xpert MRSA test revenue is expected to be approximately $47 million,
which compares to 2007 revenue of approximately $9 million.

Fourth quarter and full year preliminary revenue results are pending
finalization of the company’s financial results for the quarter and year ended
December 31, 2008 and accordingly are subject to change.

“While interest in our GeneXpert system and expanding menu of Xpert tests
continues to grow, ongoing economic turbulence and uncertainty proved to have
more of an impact on our customers than we had anticipated,” said Cepheid’s
Chief Executive Officer, John Bishop. “As we enter 2009, we remain confident
that our GeneXpert system will continue on its path to becoming the molecular
platform of choice. While the current economic environment will clearly
demand cautious and deliberate navigation, we fully expect to continue to grow
our core clinical business during 2009.”

2009 Revenue Guidance

For the fiscal year ending December 31, 2009, the company currently
expects total revenue to be approximately flat with total revenue for the
fiscal year ending December 31, 2008, with growth in our core clinical
business offsetting the previously disclosed declines of approximately $25
million
in Cepheid’s non-core clinical and biothreat businesses.

Presentation at Today’s J.P. Morgan Conference Available on Company
Website

As announced in a separate press release issued by the company on December
4, 2008
, Cepheid will today make a presentation at the J.P. Morgan Healthcare
Conference in San Francisco, California. A webcast of the presentation and
subsequent discussion will be accessible live and as a replay on the company’s
website at http://www.cepheid.com/investors.

2008 Fourth Quarter and Full Year Earnings Announcement and Conference
Call

Cepheid will announce its 2008 fourth quarter and full year results after
the market closes on Thursday, February 5, 2009 and will host a management
presentation at 2 p.m. Pacific Time that day to discuss the results.

Interested participants and investors may also listen to the live
teleconference call by dialing 888-396-2298 (domestic) or 617-847-8708
(international), and entering participant code 81765966. A replay will be
available for seven days beginning at 4 p.m. Pacific Time. Access numbers for
this replay are 888-286-8010 (domestic) and 617-801-6888 (international), with
passcode 18804591.

Accessing Webcasts

To access the live webcasts for these events, please visit Cepheid’s
website at http://www.cepheid.com/investors at least 15 minutes before the
schedule start time to download any necessary audio or plug-in software.
Replays of the webcasts will be available shortly following each presentation
and will remain available for at least 90 days.

About Cepheid

Cepheid (Nasdaq: CPHD), based in Sunnyvale, Calif., is an on-demand
molecular diagnostics company that develops, manufactures, and markets fully-
integrated systems and tests 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. Cepheid’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.

Forward Looking Statements

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 2008
and 2009 revenues, potential growth in clinical product sales, and demand for
certain products. 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: the fact that the audit for 2008 has not yet been
completed, and therefore could have audit-related adjustments; the impact of
the significant global economic downturn on the company’s target markets;
success in increasing direct sales and the effectiveness of new sales
personnel; the performance and market acceptance of new products; sufficient
customer demand; our ability to develop and complete clinical trials
successfully in a timely manner for new products; uncertainties related to the
FDA regulatory and European regulatory processes; the level of testing at
clinical customer sites; changes in the protocols or levels of testing for
MRSA and other Healthcare Associated Infections (HAIs); the company’s ability
to successfully introduce and sell products in clinical markets other than
HAIs; the mix of products sold; the rate of environmental biothreat testing
conducted by the USPS, which will affect the amount of consumable products
sold to the USPS; unforeseen development and manufacturing problems; the
potential need for additional intellectual property licenses for tests and
other products and the terms of such licenses; lengthy sales cycles in certain
markets; the company’s reliance on distributors in some regions to market,
sell and support its products; the impact of competitive products and pricing;
and the company’s ability to manage geographically-dispersed operations.
Readers should also refer to the section entitled “Risk Factors” in Cepheid’s
Annual Report on Form 10-K for 2007 and its other reports 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 Investor Inquiries:
     Jared Tipton                        Jacquie Ross
     Cepheid Corporate Communications    Cepheid Investor Relations
     Tel: (408) 400-8377                 Tel: (408) 400-8329
     jared.tipton@cepheid.com            jacquie.ross@cepheid.com

SOURCE Cepheid


Source: newswire



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