SUNNYVALE, Calif., Jan. 13 — 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 https://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 https://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.