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Cepheid Acquires Sangtec Molecular for $27 Million

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Cepheid, a broad-based molecular diagnostics company, has announced that it has acquired Sangtec Molecular Diagnostics AB from the Nycomed-owned ALTANA Pharma AG for approximately $27 million in cash.

Sangtec, based in Bromma, Sweden, develops and manufactures PCR based molecular diagnostics products. Sangtec currently has 59 employees and had revenues in 2006 of approximately $8 million.

"The acquisition of Sangtec immediately brings Cepheid three key strategic benefits. First, Sangtec currently has a relatively complete line of products for potential use in managing infections of immunocompromised patients.

Second, Sangtec has a very strong R&D team experienced in developing real time PCR based products which will enable Cepheid to more expeditiously expand its clinical test product menu.

Third, Sangtec has an accomplished manufacturing team noted for its ability to produce high quality products. This team will provide Cepheid with an established reagent manufacturing base in Europe," said Cepheid Chief Executive Officer John Bishop.

Cepheid plans to integrate the Sangtec affigene® family of Real-time PCR molecular diagnostic kits targeted at the immunocompromised market into its existing European and U.S. portfolio of in vitro diagnostic products.

The expanded line will include affigene® assay kits for Cytomegalovirus (CMV), Epstein-Barr Virus (EBV), Herpes Simplex Virus 1 and 2 (HSV), Hepatitis B Virus (HBV), Varicella Zoster Virus (VZV), BK Virus (BKV), and Aspergillus.

It is currently expected that the acquisition will be slightly dilutive to operating income for the first quarter following the acquisition, but should be slightly accretive to operating income for the balance of the year, with a neutral impact on operating income for the entire year of 2007.