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June 12, 2007

Cepheid's Value

Analysis of: New Test May Allow For Rapid Detection Of Salmonella In Meat | www.medicalnewstoday.com

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.

Analysis By:

Ken Powell
President, Genesis Business Development

Implications: Cepheid http://finance.yahoo.com/q?s=CPHD has a unique platform technology that has the potential to move this company into a new realm of clinical diagnostics.

Analysis: Cepheid's technology has the ability to substantially reduce/eliminate the cost of Hospital Acquired Infections (HAIs). These are mostly due to Methicillin Resistant Staph Aureus. A study by the American Practioners for Infection Control involving 1.69 million admissions at 77 US hospitals revealed that HAIs reduced net margins by $286 million. Cepheid has the potential to significantly reduce these costs, capture value and improve the quality of healthcare delivery.

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