CPHD - Cephid (CPHD)

[jmhollen]

$3.4 Million to Support Applications for Diagnostics and Bio-Threat Detection

SUNNYVALE, Calif., May 9 /PRNewswire-FirstCall/ -- Cepheid (Nasdaq: CPHD)
today announced the United States Army Medical Research Institute of
Infectious Diseases (USAMRIID) has expanded the scope and funding for its
development contract by $3.4 million over the next two years. Under this
contract, Cepheid will develop biochemical reagents used in the detection of
bio-threat agents and other pathogens, as well as develop various protocols,
processes and assays for Cepheid's fully automated GeneXpert(R) DNA detection
system.

The contract's key deliverables call on Cepheid to expand applications of
the GeneXpert for integrated sample preparation and detection of viruses in
biological samples, develop nine prototype assays using Cepheid's proprietary
dry-bead reagent formulation, develop protocols and tools to detect sepsis
with the GeneXpert, and establish a multiplex assay to distinguish the
virulent form of anthrax from other non-virulent anthrax species in a single
test.

"During the height of the anthrax crisis last year, we made extensive use
of Cepheid's Smart Cycler(R) instruments and DNA detection technology to
rapidly identify anthrax in powders and letters and to confirm the genetic
identity of cultured Bacilli isolated during environmental assessments of
contaminated areas in New York and Washington," said Colonel Erik A. Henchal,
U.S. Army Medical Services Corps and Chief of the Diagnostic Systems Division
at USAMRIID. "With the added capability of automated sample preparation, the
GeneXpert will further enhance our ability to handle a variety of biological
samples in time-critical testing scenarios."
Kurt Petersen, Ph.D., Cepheid's president and chief operating officer
added, "As the lead medical research laboratory for the U.S. Biological
Defense Research Program, the rapid detection of infectious disease is central
to USAMRIID's mission and has been the focusof our shared vision over the
past five years. We are gratified that USAMRIID has extended their development
contract with us for infectious disease diagnostics."

Cepheid, based in Sunnyvale, Calif., is a leading developer, manufacturer
and marketer of miniaturized, fully integrated systems for rapid, on-site
detection of DNA -- the universal biological identifier. Founded in 1996, the
company is commercializing its technology and products for scientific, medical
and industrial applications requiring time-critical detection of human and
other genes, infectious disease agents, and industrial and environmental
contaminants at the point of need. Cepheid, Smart Cycler and GeneXpert are
registered trademarks of Cepheid. See http://www.cepheid.com for more
information.

USAMRIID is the Army's lead laboratory for developing medical products for
biological defense and is a subordinate laboratory of the U.S. Army Medical
Research and Material Command, Fort Detrick, Md.