Cepheid GeneXpert(R) System Receives Department Of Homeland Security Certification

SUNNYVALE, Calif., March 22 /PRNewswire-FirstCall/ -- Cepheid , a broad-based molecular diagnostics company, announced today that it has received both certification and designation of the GeneXpert(R) technology as Qualified Anti-terrorism Technology (QATT). GeneXpert is now listed among products approved by the Department of Homeland Security and is granted coverage under the Support Anti-Terrorism by Fostering Effective Technology Act known as the SAFETY Act.

The SAFETY Act encourages the development and deployment of anti-terrorism technologies that will substantially enhance the protection of the nation. The Act reflects the intent of Congress to ensure the threat of liability does not deter potential sellers from developing and commercializing technologies that could significantly reduce the risk or mitigate the effect of terrorist acts. It creates certain liability limitations when QATTs have been deployed but does not limit liability where an act of terrorism has not occurred.

"All Cepheid suppliers, vendors, and customers benefit from the protection of SAFETY Act Certification knowing that the GeneXpert System meets the government's most stringent standards for biothreat technology," said Cepheid Chief Executive Officer John Bishop. "The GeneXpert technology has been demonstrated to be an accurate and effective solution to meeting varying needs in the potential detection of biothreat agents."

Cepheid's GeneXpert is the world's only system to combine sample preparation with real time PCR (polymerase chain reaction) amplification and detection -- delivering fully-integrated and automated DNA analysis. The system purifies, concentrates, detects and identifies targeted nucleic acid sequences, delivering answers from unprocessed samples in minutes. Current techniques for performing the same complex sample prep and PCR procedures involve skilled technicians in microbiology labs performing manual tasks that can take more than a day to complete. No specialized facilities or highly skilled laboratory training is required to operate the GeneXpert System.

About Cepheid

Cepheid , 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 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 limitations on liability for certain certified 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: unforeseen development and manufacturing problems, including with respect to the GeneXpert(R) system, cartridges, and reagents; the effectiveness of our recently-implemented process controls; the effect of future legislation, judicial decisions or interpretations or other changes in laws that could impact the limitations of liability specified in the SAFETY Act, the need for additional licenses for new tests and other products and the terms of such licenses; our ability to successfully commercialize our stand-alone GeneXpert(R) system; the performance and market acceptance of new products; sufficient customer demand in the other markets; our reliance on distributors to market, sell and support our products; the occurrence of unforeseen expenditures, acquisitions or other transactions; our success in increasing direct sales; the impact of competitive products and pricing; and underlying market conditions worldwide. Readers should also refer to the section entitled "Risk Factors" in Cepheid's Annual Report on Form 10-K for 2005 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: At the Company: John L. Bishop John R. Sluis CEO, Cepheid CFO, Cepheid 408-541-4191 408-541-4191 john.bishop@cepheid.comjohn.sluis@cepheid.com At Financial Relations Board: At Schwartz Communications: Tricia Ross Chris Stamm / Tom Bain Investor/Analyst Information 781-684-0770 617-520-7064 cepheid@schwartz-pr.comtross@financialrelationsboard.com

CONTACT: John L. Bishop, CEO, john.bishop@cepheid.com, or John R. Sluis,CFO, john.sluis@cepheid.com, both of Cepheid, +1-408-541-4191; or TriciaRoss, Investor/Analyst Information of Financial Relations Board,+1-617-520-7064, tross@financialrelationsboard.com, for Cepheid; or ChrisStamm or Tom Bain, +1-781-684-0770, cepheid@schwartz-pr.com, both ofSchwartz Communications, for Cepheid

Web site: http://www.cepheid.com/