Houston VA Announces Initiation of MRSA Surveillance Program Using Cepheid's GeneXpert(R) System and Xpert(TM) MRSA Test

SUNNYVALE, Calif., May 3 /PRNewswire-FirstCall/ -- Cepheid (NASDAQ:CPHD), a broad-based molecular diagnostics company, today reported that on April 30, 2007, the Michael E. DeBakey VA Medical Center issued a press release announcing that it was "The first hospital in Texas, not to mention the VA, to install a computerized system able to integrate all the steps required for surveillance MRSA testing: sample preparation, amplification, and detection."

The newly installed system is Cepheid's GeneXpert(R) System, the GX-XVI. 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 molecular results in a timely manner. The Xpert(TM) MRSA test, run on the GeneXpert System, uses real-time PCR to deliver test results in just over one hour. Due to its ease of use, the GeneXpert System can provide easy access to molecular tests on an on-demand basis 24 hours a day, seven days a week. The Xpert MRSA test was cleared for marketing in the United States by the U.S. Food & Drug Administration (FDA) on April 18, 2007.

The April 30th release went on to provide the following statement regarding the benefits provided by the GeneXpert System:

"A key factor with this new system is now we have 'on-demand' capabilities. Testing can occur at any time, on any day. This quick turn-around will give us actionable results in minutes and will decrease the window for potential transmission of MRSA," said Patricia A. Byers, R.M., M.(A.S.C.P.), C.I.C., MEDVAMC Infection Control practitioner.

MRSA is a bacterium that is resistant to antibiotics including methicillin, oxacillin, penicillin and amoxicillin affecting those with weakened immune systems such as hospital patients and nursing home residents. It is the leading cause of Hospital Acquired Infections (HAI's) and MRSA infection rates have increased every year since 1970. According to the U.S. Centers for Disease Control and Prevention (CDC), HAI's number over two million annually, and more than 100,000 hospital patients die each year as a result of contracting an infection while being treated for another condition. According to U.S. Congressional Record (H.R. Bill 1174), these HAI's contribute to over $50 billion in annual medical costs.

About Cepheid

Cepheid (NASDAQ:CPHD), based in Sunnyvale, Calif., is a 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 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. 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; customer 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; and the fact that the VA has no commitment to purchase additional products, and there can be no assurance that it will do so in the future. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2006 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.


    At the Company:
    John L. Bishop                         John R. Sluis
    CEO, Cepheid                           CFO, Cepheid
    408-541-4191                           408-541-4191
    john.bishop@cepheid.com                john.sluis@cepheid.com

    At Financial Relations Board:          At Schwartz Communications:
    Lasse Glassen                          Chris Stamm
    Investor/Analyst Information           415-512-0770
    310-854-8313                           cepheid@schwartz-pr.comlglassen@financialrelationsboard.com

Source: Cepheid

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