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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">As filed with the Securities and Exchange Commission on March&nbsp;28, 2008</DIV>

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    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Registration No: 333-</TD>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt; margin-top: 3pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM S-8</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>CEPHEID</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


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    <TD align="center" valign="top"><B>California</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>77-0441625</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer Identification No.)</TD>
</TR>
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</DIV>

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<TR valign="bottom">
    <TD align="center" valign="top"><B>904 Caribbean Drive Sunnyvale, CA</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>94089-1302</B></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of Principal Executive Offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
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</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>2000 EMPLOYEE STOCK PURCHASE PLAN (as amended)</B><BR>
(Full Title of the Plans)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>John L. Bishop<BR>
Chief Executive Officer<BR>
Cepheid<BR>
904 Caribbean Drive<BR>
Sunnyvale, CA 94086-1302</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt">(Name and Address of Agent For Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt"><B>(408)&nbsp;541-4191</B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 0pt">(Telephone Number, Including Area Code, of Agent For Service)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Copies to:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Douglas N. Cogen<BR>
Jeffrey R. Vetter<BR>
FENWICK &#038; WEST LLP<BR>
555 California Street<BR>
San Francisco, CA 94104<BR>
Telephone: (415)&nbsp;875-2300<BR>
Facsimile: (415)281-1350</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See definition of &#147;large accelerated
filer,&#148; &#147; accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule&nbsp;12b-2 of the Exchange Act.
(Check one)
</DIV>

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<TR style="font-size: 6pt">
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    <TD width="3%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
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<TR valign="top">
    <TD nowrap align="center" valign="top">Large accelerated filer <FONT face="Wingdings">&#254;</FONT>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD align="center">&nbsp;</TD>
    <TD nowrap align="center">Non-accelerated filer &nbsp; <FONT face="Wingdings">&#111;</FONT><BR>
(Do not check if a smaller reporting company)</TD>
    <TD align="center">&nbsp;</TD>
    <TD nowrap align="center" valign="top">Smaller reporting company <FONT face="Wingdings">&#111;</FONT>&nbsp;</TD>
</TR>
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CALCULATION OF REGISTRATION FEE</B>
</DIV>

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    <TD width="13%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>

    <TD width="1%">&nbsp;</TD>
</TR><TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-bottom: 3px double #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount</B></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Proposed Maximum</B></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Proposed Maximum</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>Title of Securities</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>to be</B></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Offering Price</B></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Aggregate Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Registration</B></TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">    <TD width="1%">&nbsp;</TD>

    <TD nowrap align="center"><B>to be Registered</B></TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Registered</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(1)</B></SUP></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>per Share</B><SUP style="font-size: 85%; vertical-align: text-top"><B>(2)</B></SUP></TD>

    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Price</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-right: 2px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Fee</B></TD>
    <TD>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
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    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
                    <TD align="center" style="border-top: 2px solid #000000">Common Stock</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>

    <TD colspan="3" align="center" style="border-top: 2px solid #000000">400,000</TD>

    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-top: 2px solid #000000">$</TD>
    <TD align="right" style="border-top: 2px solid #000000">24.11</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>


<TD colspan="2" align="center" style="border-top: 2px solid #000000">$9,644,000.00</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-right: 2px solid #000000; border-top: 2px solid #000000">&nbsp;</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>


<TD colspan="2" align="center" style="border-top: 2px solid #000000">$379.01</TD>
    <TD style="border-top: 2px solid #000000">&nbsp;</TD>
    <TD width="1%" style="border-top: 2px solid #000000">&nbsp;</TD>
</TR>
<TR style="font-size: 1px" valign="bottom">
    <TD nowrap align="left" colspan="23" style="border-top: 3px double #000000">&nbsp;</TD>
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    <TD width="96"></TD>
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<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Pursuant to Rule&nbsp;416(a), this registration statement also covers any additional securities
that may be offered or issued in connection with any stock split, stock dividend or similar
transaction.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD>Estimated solely for the purpose of computing the amount of registration fee in accordance
with Rules 457(c) and (h)&nbsp;promulgated under the Securities Act of 1933, as amended, based on
the average of the high and low prices of Cepheid&#146;s Common Stock reported on the NASDAQ Global
Market on March&nbsp;24, 2008.</TD>
</TR>

</TABLE>



<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt; margin-top: 12pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPLANATORY NOTE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under cover of this Registration Statement on Form S-8 (the &#147;<B><I>Form&nbsp;S-8</I></B>&#148;) is a prospectus for
common stock of Cepheid prepared in accordance with Part&nbsp;I of Form S-3 under the Securities Act of
1933, as amended (the &#147;<B><I>Securities Act</I></B>&#148;). This prospectus has been prepared pursuant to General
Instruction C of Form S-8, in accordance with the requirements of Part&nbsp;I of Form S-3, and may be
used for reoffers and resales on a continuous or delayed basis in the future of up to an aggregate
of 400,000 shares of common stock, consisting of (i)&nbsp;shares that have been issued to certain
employees of Cepheid pursuant to Cepheid&#146;s 2000 Employee Stock Purchase Plan, as amended (the
&#147;<B><I>ESPP</I></B>&#148;), pursuant to the terms of such plan, prior to the filing of this Form S-8 and that
constitute &#147;restricted securities&#148; or &#147;control securities&#148; within the meaning of the Form S-8 and
(ii)&nbsp;shares automatically reserved on each of January&nbsp;1, 2007 and 2008 for issuance in the future
under the ESPP, pursuant to the terms of such plan.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Plan Information. (1)</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Item&nbsp;2. Registrant Information and Employee Plan Annual Information. (1)</B>

</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD>Information required by this Item to be contained in the Section 10(a) prospectus is omitted
from this Form S-8 in accordance with Rule&nbsp;428 under the Securities Act and the Note to Part&nbsp;I
of Form S-8. In accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the Commission either as
part of this Form S-8 or as prospectuses or prospectus supplements pursuant to Rule&nbsp;424 under
the Securities Act.</TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>A prospectus prepared pursuant to General Instruction C of Form S-8, in accordance with the
requirements of Part&nbsp;I of Form S-3, which covers reoffers and resales on a continuous or delayed
basis of up to 130,411 shares of common stock previously issued or available to be issued to
stockholders pursuant to the exercise of purchase rights pursuant to the 2000 Employee Stock
Purchase Plan, is set forth below.</TD>
</TR>

</TABLE>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>CEPHEID</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>130,411 SHARES OF COMMON STOCK, NO PAR VALUE</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This prospectus relates to 130,411 shares of common stock Cepheid (&#147;<B><I>Cepheid</I></B>&#148;) that may be
offered from time to time by certain selling stockholders named in this prospectus (the &#147;<B><I>Selling
Stockholders</I></B>&#148;) for their own accounts.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders may sell the shares in the open market at prevailing market prices on
the NASDAQ Global Market, or in private transactions at negotiated prices. The Selling
Stockholders may sell the shares directly, or may sell them through brokers or dealers. Cepheid
will not receive any of the proceeds from sales made under this prospectus. Cepheid is paying the
expenses incurred in registering these shares, but all selling and other expenses incurred by each
of the Selling Stockholders will be borne by that Selling Stockholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is traded on the NASDAQ Global Market under the symbol &#147;CPHD.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>See &#147;Risk Factors&#148; beginning on page 4 to read about factors you should consider before buying
shares of our common stock.</B>
</DIV>
<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 12pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense</B>.
</DIV>

<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 12pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">The date of this prospectus is March&nbsp;28, 2008
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="90%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#101">Special Note Regarding Forward-Looking Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#102">The Company</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#103">Risk Factors</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#104">Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#105">Selling Stockholders</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#106">Plan of Distribution</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#107">Legal Matters</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#108">Experts</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#109">Where You Can Find More Information</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><A href="#110">Incorporation of Documents by Reference</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="f39371exv5w1.htm">EXHIBIT 5.1</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="f39371exv23w1.htm">EXHIBIT 23.1</A></FONT></TD></TR>
</TABLE>
</DIV>

<DIV align="left">
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</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No dealer, salesperson or other person is authorized to give any information or to represent
anything not contained in this prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the shares offered hereby, and only under
circumstances and in jurisdictions where it is lawful to do so. The information contained in this
prospectus is current only as of its date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except where the context requires otherwise, in this prospectus &#147;company,&#148; &#147;Cepheid,&#148;
&#147;Registrant,&#148; &#147;we,&#148; &#147;us&#148; and &#147;our&#148; refer to Cepheid, a California corporation, and where
appropriate, its subsidiaries.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="101"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SPECIAL NOTE&nbsp;REGARDING FORWARD-LOOKING STATEMENTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This prospectus includes or incorporates by reference forward-looking statements. All
statements contained in this prospectus and the documents incorporated by reference other than
statements of historical facts, including statements regarding our future results of operations and
financial position, our business strategy and plans and our objectives for future operations, are
forward-looking statements. The words &#147;believe,&#148; &#147;may,&#148; &#147;will,&#148; &#147;estimate,&#148; &#147;continue,&#148;
&#147;anticipate,&#148; &#147;intend,&#148; &#147;expect&#148; and similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and long-term business operations
and objectives, and financial needs. These forward-looking statements are subject to a number of
risks, uncertainties and assumptions, including those described in &#147;Risk Factors.&#148; In light of
these risks, uncertainties and assumptions, the future events and trends discussed in this
prospectus may not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We cannot guarantee future results, levels of activity, performance or achievements. Except
as required under applicable law, we are under no duty to update any of these forward-looking
statements after the date of this prospectus to conform these statements to actual results or
revised expectations.
</DIV>
<DIV align="left">
<A name="102"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>THE COMPANY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are a broad based molecular diagnostics company that develops, manufactures, and markets
fully-integrated systems for genetic testing in the Clinical Molecular Diagnostic, Industrial and
Biothreat markets. Our systems enable rapid, sophisticated molecular testing for organisms and
genetic-based diseases by automating otherwise complex manual laboratory procedures. Molecular
testing involves a number of complicated and time-intensive steps, including sample preparation,
DNA amplification and detection. Our easy-to-use systems integrate these steps and analyze complex
biological samples in our proprietary test cartridges. We are currently the only company to have
obtained Clinical Laboratory Improvement Amendments moderate complexity categorization for an
amplified molecular test system and an associated specific infectious disease test on the market in
the United&nbsp;States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our principal executive offices are located at 904 Caribbean Drive, Sunnyvale, California
94089-1189, and our telephone number is (408)&nbsp;541-4191. Our website address is www.cepheid.com.
The information on, or that can be accessed through, our website is not part of this prospectus.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cepheid<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, the Cepheid logo, SmartCycler<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP>, GeneXpert<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> and
I-CORE<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> and affigene<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> are registered trademarks of Cepheid. SmartCycler II,
Xpert, Actigenics and Sangtec are trademarks of Cepheid. All other trademarks, service marks or
trade names referred to in this report are the property of their respective owners.
</DIV>

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</DIV>

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<DIV align="left">
<A name="103"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RISK FACTORS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>You should carefully consider the risks and uncertainties described below, together with all
of the other information included in this prospectus, in considering our business and prospects.
The risks and uncertainties described below are not the only ones facing Cepheid. Additional risks
and uncertainties not presently known to us or that we currently deem immaterial also may impair
our business operations. The occurrence of any of the following risks could harm our business,
financial condition or results of operations.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;<B><I>We may not achieve profitability.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have incurred operating losses in each period since our inception. We experienced net
losses of approximately $13.6&nbsp;million in 2005, $26.0&nbsp;million in 2006 and $21.4&nbsp;million in 2007. As
of December&nbsp;31, 2007, we had an accumulated deficit of approximately $154.9&nbsp;million. Our ability to
become profitable will depend on our ability to continue to increase our revenues, which is subject
to a number of factors including our ability to successfully penetrate the Clinical Molecular
Diagnostic market, our ability to successfully market the GeneXpert system and develop effective
GeneXpert tests, the extent of our participation in the USPS BDS program and the operating
parameters of the USPS BDS program, which will affect the rate of our consumable products sold, the
success of our other collaborative programs, our ability to compete effectively against current and
future competitors, global economic and political conditions and the impact of Statement of
Financial Accounting Standards No.&nbsp;123 (revised 2004), &#147;Share-Based Payment&#148;. Our ability to become
profitable also depends on our expense levels and product gross margin, which are also influenced
by a number of factors, including the resources we devote to developing and supporting our
products, the continued progress of our research and development of potential products, the ability
to gain FDA clearance for our products, our ability to improve manufacturing efficiencies, license
fees or royalties we may be required to pay, our ability to integrate acquired businesses and
technologies, acquisition-related costs and expenses and the potential need to acquire licenses to
new technology or to use our technology in new markets, which could require us to pay unanticipated
license fees and royalties in connection with these licenses. Our expansion efforts may prove more
expensive than we currently anticipate, and we may not succeed in increasing our revenues to offset
higher expenses. These expenses, among other things, may cause our net income and working capital
to decrease. If we fail to grow our revenue and manage our expenses and improve our product gross
margin, we may never achieve profitability. If we fail to do so, the market price of our common
stock will likely decline.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;<B><I>If we cannot successfully commercialize our products, our business could be harmed.</I></B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our tests for use on the SmartCycler and GeneXpert systems do not gain continued market
acceptance, we will be unable to generate significant sales, which will prevent us from achieving
profitability. While we have received FDA clearance for our Xpert GBS, Xpert EV and Xpert MRSA
tests, these products may not continue to achieve commercial success. Many factors may affect the
market acceptance and commercial success of our products, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>timely development of a menu of tests and reagents;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the results of clinical trials needed to support any regulatory approvals of our tests;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to obtain requisite FDA or other regulatory clearances or approvals for our
tests under development on a timely basis;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>demand for the tests and reagents we are able to introduce;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the timing of market entry for various tests for the GeneXpert and the SmartCycler
systems;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our ability to convince our potential customers of the advantages and economic value of
our systems and tests over competing technologies and products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the breadth of our test menu relative to competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the extent and success of our marketing and sales efforts; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>publicity concerning our systems and tests.</TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, we believe that the success of our business will depend in large part on our
ability to introduce additional tests for the Clinical Molecular Diagnostic market. We believe that
successfully building our business in the Clinical Molecular Diagnostic market is critical to our
long-term goals and success. We have limited ability to forecast future demand for our products in
this market. In addition, we have committed substantial funds to licenses that are required for us
to enter the Clinical Molecular Diagnostic market. If we cannot successfully penetrate the Clinical
Molecular Diagnostic market to exploit these licenses, these investments may not yield significant
returns, which could harm our business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>The regulatory approval process is expensive, time-consuming, and uncertain and may prevent us
from obtaining required approvals for the commercialization of some of our products.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the Clinical Molecular Diagnostic market, our products are regulated as medical device
products by the FDA and comparable agencies of other countries. In particular, FDA regulations
govern activities such as product development, product testing, product labeling, product storage,
premarket clearance or approval, manufacturing, advertising, promotion, product sales, reporting of
certain product failures and distribution. Some of our products, depending on their intended use,
will require premarket approval (&#147;PMA&#148;) or 510(k) clearance from the FDA prior to marketing. The
510(k) clearance process usually takes from three to four months from submission but can take
longer. The PMA process is much more costly, lengthy, and uncertain and generally takes from six
months to one year or longer from submission. Clinical trials are generally required to support
both PMA and 510(k) submissions. Certain of our products for use on our SmartCycler and GeneXpert
systems, when used for clinical purposes, may require PMA, and all such tests will most likely, at
a minimum, require 510(k) clearance. We are planning clinical trials for other proposed products.
Clinical trials are expensive and time-consuming. In addition, the commencement or completion of
any clinical trials may be delayed or halted for any number of reasons, including product
performance, changes in intended use, changes in medical practice and issues with evaluator
Institutional Review Boards.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to comply with the applicable requirements can result in, among other things, warning
letters, administrative or judicially imposed sanctions such as injunctions, civil penalties,
recall or seizure of products, total or partial suspension of production, refusal to grant
premarket clearance or PMA for devices, withdrawal of marketing clearances or approvals, or
criminal prosecution. With regard to future products for which we seek 510(k) clearance or PMA from
the FDA, any failure or material delay to obtain such clearance or approval could harm our
business. If the FDA were to disagree with our regulatory assessment and conclude that approval or
clearance is necessary to market the products, we could be forced to cease marketing the products
and seek approval or clearance. With regard to those future products for which we will seek 510(k)
clearance or PMA from the FDA, any failure or material delay to obtain such clearance or approval
could harm our business. In addition, it is possible that the current regulatory framework could
change or additional regulations could arise at any stage during our product development or
marketing, which may adversely affect our ability to obtain or maintain approval of our products
and could harm our business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our manufacturing facilities located in Sunnyvale, California, Bothell, Washington and Bromma,
Sweden, where we assemble and produce the SmartCycler and GeneXpert systems, cartridges and other
molecular diagnostic kits and reagents, are subject to periodic regulatory inspections by the FDA
and other federal and state regulatory agencies. For example, these facilities are subject to
Quality System Regulations (&#147;QSR&#148;) of the FDA and are subject to annual inspection and licensing by
the State of California and European regulatory agencies. If we fail to maintain these facilities
in accordance with the QSR requirements, international quality standards or other regulatory
requirements, our manufacturing process could be suspended or terminated, which would prevent us
from being able to provide products to our customers in a timely fashion and therefore harm our
business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>The U.S. Food and Drug Administration has issued a final interpretation of the regulations
governing the sale of Analyte Specific Reagent products which could prevent or delay our sales of
these products and harm our business.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2006, the FDA published &#147;Draft Guidance for Industry and FDA Staff: Commercially
Distributed Analyte Specific Reagents (&#147;ASRs&#148;): Frequently Asked Questions&#148; clarifying the FDA&#146;s
interpretation of the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">regulations governing the sale of ASR products. On September&nbsp;14, 2007, the
FDA published its final guidance that becomes effectively enforced on September&nbsp;15, 2008. ASRs are
a class of products that do not require regulatory clearance or approval but do require compliance
with the FDA&#146;s Good Manufacturing Practice Regulations. The final guidance contains changes in
interpretation of the ASR regulations with regard to which products may be characterized as ASRs
that represent a departure from what we believe had been the previous FDA practice and policy, in
particular, the final guidance excludes reagent mixtures used to detect multiple targets from the
definition of ASRs. The changes in the final ASR guidance may require modifications of some of our
ASR products for us to continue selling them, or may require us to seek FDA clearance in order to
sell them. In addition, the final guidance may curtail our interest in developing any new products
that would qualify as ASRs.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We rely on licenses of key technology from third parties and may require additional licenses for
many of our new product candidates.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on third-party licenses to be able to sell many of our products, and we could lose
these third-party licenses for a number of reasons, including, for example, early terminations of
such agreements due to breaches or alleged breaches by either party to the agreement. If we are
unable to enter into a new agreement for licensed technologies, either on terms that are acceptable
to us or at all, we may be unable to sell some of our products or access some geographic or
industry markets. We also need to introduce new products and product features in order to market
our products to a broader customer base and grow our revenues, and many new products and product
features could require us to obtain additional licenses and pay additional license fees and
royalties. Furthermore, for some markets, we intend to manufacture reagents and tests for use on
our instruments. We believe that manufacturing reagents and developing tests for our instruments is
important to our business and growth prospects but may require additional licenses, which may not
be available on commercially reasonable terms or at all. Our ability to develop, manufacture and
sell products, and our strategic plans and growth, could be impaired if we are unable to obtain
these licenses or if these licenses are terminated or expire and cannot be renewed. We may not be
able to obtain or renew licenses for a given product or product feature or for some reagents on
commercially reasonable terms, if at all. Furthermore, some of our competitors have rights to
technologies and reagents that we do not have which may put us at a competitive disadvantage in
certain circumstances and could adversely affect our performance.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We enter into collaborations with third parties that may not result in the development of
commercially viable products or the generation of significant future revenues.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of our business, we enter into collaborative arrangements to develop
new products or to pursue new markets. These collaborations may not result in the development of
products that achieve commercial success, and these collaborations could be terminated prior to
developing any products. Accordingly, we cannot assure you that any of our collaborations will
result in the successful development of a commercially viable product or result in significant
additional future revenues in the future.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>Our participation in the USPS BDS program may not result in predictable contracts or revenues in
the future.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our participation in the USPS BDS program involves significant uncertainties related to
governmental decision-making and timing of deployment, and is highly sensitive to changes in
national and international priorities and budgets. Budgetary pressures may result in reduced
allocations to government agencies such as the USPS, sometimes without advanced notice. We cannot
be certain that actual funding and operating parameters, or product purchases, will occur at
currently expected levels or in the currently expected timeframe.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We may face risks associated with acquisitions of companies, products and technologies, and our
business could be harmed if we are unable to address these risks.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we are presented with appropriate opportunities, we intend to acquire or make other
investments in complementary companies, products or technologies. We may not realize the
anticipated benefit of any acquisition or investment. We will likely face risks, uncertainties and
disruptions associated with the integration process,
including difficulties in the integration of the operations and services of an acquired
company, integration of acquired technology with our products, diversion of our management&#146;s
attention from other business concerns, the potential loss of key employees or customers of the
acquired businesses and impairment charges if future
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">acquisitions are not as successful as we
originally anticipate. If we fail to successfully integrate other companies, products or
technologies that we acquire, our business could be harmed. Furthermore, we may have to incur debt
or issue equity securities to pay for any additional future acquisitions or investments, the
issuance of which could be dilutive to our existing shareholders. In addition, our operating
results may suffer because of acquisition-related costs or amortization expenses or charges
relating to acquired intangible assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We expect that our operating results will fluctuate significantly, and any failure to meet
financial expectations may result in a decline in our stock price.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We expect that our quarterly operating results will fluctuate in the future as a result of
many factors, such as those described elsewhere in this section, many of which are beyond our
control. Because our revenue and operating results are difficult to predict, we believe that
period-to-period comparisons of our results of operations are not a good indicator of our future
performance. Our operating results may be affected by the inability of some of our customers to
consummate anticipated purchases of our products, whether due to changes in internal priorities or,
in the case of governmental customers, problems with the appropriations process and variability and
timing of orders, or manufacturing inefficiencies. If revenue declines in a quarter, whether due to
a delay in recognizing expected revenue, unexpected costs or otherwise, our results of operations
will be harmed because many of our expenses are relatively fixed. In particular, research and
development and selling, general and administrative expenses are not significantly affected by
variations in revenue. If our quarterly operating results fail to meet or exceed the expectations
of securities analysts or investors, our stock price could drop suddenly and significantly.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If we are unable to manufacture our products in sufficient quantities and in a timely manner, our
operating results will be harmed and our ability to generate revenue could be diminished.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our revenues and other operating results will depend in large part on our ability to
manufacture and assemble our products in sufficient quantities and in a timely manner. Any
interruptions we experience in the manufacturing or shipping of our products could delay our
ability to recognize revenues in a particular quarter. We have limited experience in manufacturing
large volumes of products, and manufacturing problems can and do arise or we may be unable to
adequately scale-up manufacturing in a timely manner or on a commercially reasonable basis if we
experience increased demand. In the past, we have experienced problems and delays in production
that have impacted our product yield and caused delays in our ability to ship finished products,
and we may experience such delays in the future. We may not be able to react quickly enough to ship
products and recognize anticipated revenues for a given period if we experience significant delays
in the manufacturing process. If we are unable to manufacture our products consistently and on a
timely basis, our revenues from product sales, gross margins and our other operating results will
be materially and adversely affected.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If certain single source suppliers fail to deliver key product components in a timely manner, our
manufacturing ability would be impaired and our product sales could suffer.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We depend on certain single source suppliers that supply some of the components used in the
manufacture of our instruments and our disposable reaction tubes and cartridges. If we need
alternative sources for key component parts for any reason, these component parts may not be
immediately available to us. If alternative suppliers are not immediately available, we will have
to identify and qualify alternative suppliers, and production of these components may be delayed.
We may not be able to find an adequate alternative supplier in a reasonable time period or on
commercially acceptable terms, if at all. Shipments of affected products have been limited or
delayed as a result of such problems in the past, and similar problems could occur in the future.
Our inability to obtain our key source supplies for the manufacture of our products may require us
to delay shipments of products, harm customer relationships or force us to curtail or cease
operations.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If certain of our products fail to obtain an adequate level of reimbursement from third-party
payers, our ability to sell products in the Clinical Molecular Diagnostic market would be harmed.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our ability to sell our products in the Clinical Molecular Diagnostic market will depend in
part on the extent to which reimbursement for tests using our products will be available from:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>government health administration authorities;</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>private health coverage insurers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>managed care organizations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>other organizations.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are efforts by governmental and third-party payers to contain or reduce the costs of
health care through various means. Additionally, third-party payers are increasingly challenging
the price of medical products and services. If purchasers or users of our products are not able to
obtain adequate reimbursement for the cost of using our products, they may forego or reduce their
use. Significant uncertainty exists as to the reimbursement status of newly approved health care
products and whether adequate third-party coverage will be available.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If our competitors and potential competitors develop superior products and technologies, our
competitive position and results of operations would suffer.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face intense competition from a number of companies that offer products in our target
markets. These competitors include:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>healthcare companies that manufacture laboratory-based tests and analyzers;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>companies developing and marketing sequence detection systems for industrial research
products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>diagnostic and pharmaceutical companies;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>companies developing drug discovery technologies; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>companies developing or offering biothreat detection technologies.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several companies provide instruments and reagents for DNA amplification or detection. ABI and
Roche sell systems integrating DNA amplification and detection (sequence detection systems) to the
commercial market. Roche, Abbott Laboratories, Becton, Dickinson and Company, Qiagen, Celera and
GenProbe sell sequence detection systems, some with separate robotic batch DNA purification systems
and sell reagents to the Clinical Molecular Diagnostic market. Other companies, including Siemens,
Third Wave Technologies and bioMerieux, offer molecular tests.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If our products do not perform as expected or the reliability of the technology on which our
products are based is questioned, we could experience lost revenue, delayed or reduced market
acceptance of our products, increased costs and damage to our reputation.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success depends on the market&#146;s confidence that we can provide reliable, high-quality
molecular test systems. We believe that customers in our target markets are likely to be
particularly sensitive to product defects and errors. Our reputation and the public image of our
products or technologies may be impaired if our products fail to perform as expected or our
products are perceived as difficult to use. Despite testing, defects or errors could occur in our
products or technologies. Furthermore, with respect to the BDS program, our products are
incorporated into larger systems that are built and delivered by others; we cannot control many
aspects of the final system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the future, if our products experience a material defect or error, this could result in
loss or delay of revenues, delayed market acceptance, damaged reputation, diversion of development
resources, legal claims, increased insurance costs or increased service and warranty costs, any of
which could harm our business. Any failure in the overall BDS, even if it is unrelated to our
products, could harm our business. Even after any underlying concerns or problems are resolved, any
widespread concerns regarding our technology or any manufacturing defects or performance errors in
our products could result in lost revenue, delayed market acceptance, damaged reputation, increased
service and warranty costs, and claims against us.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>If
product liability lawsuits are successfully brought against us, we
may face reduced demand for our product and incur significant
liabilities.</i></b></div>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face an inherent risk of exposure to product liability claims if our technologies or
systems are alleged to have caused harm or do not perform in accordance with specifications, in
part because our products are used for sensitive applications. We cannot be certain that we would
be able to successfully defend any product liability lawsuit brought against us. Regardless of
merit or eventual outcome, product liability claims may result in:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>decreased demand for our products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>injury to our reputation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>costs of related litigation; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>substantial monetary awards to plaintiffs.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we become the subject of a successful product liability lawsuit, we could incur substantial
liabilities, which could harm our business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><B><I>We rely on relationships with collaborative partners and other third parties for development,
supply and marketing of certain products and potential products, and such collaborative partners
or other third parties could fail to perform sufficiently.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that our success in penetrating our target markets depends in part on our ability
to develop and maintain collaborative relationships with other companies. Relying on collaborative
relationships is risky to our future success for these products because, among other things:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our collaborative partners may not devote sufficient resources to the success of our
collaboration;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our collaborative partners may not obtain regulatory approvals necessary to continue
the collaborations in a timely manner;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our collaborative partners may be acquired by another company and decide to terminate
our collaborative partnership or become insolvent;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our collaborative partners may develop technologies or components competitive with our
products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>components developed by collaborators could fail to meet specifications, possibly
causing us to lose potential projects and subjecting us to liability;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disagreements with collaborators could result in the termination of the relationship or
litigation;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>collaborators may not have sufficient capital resources;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>collaborators may pursue tests or other products that will not generate significant
volume for us, but may consume significant research and development and manufacturing
resources; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to negotiate future collaborative arrangements, or renewals of
existing collaborative agreements, on acceptable terms.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because these and other factors may be beyond our control, the development or
commercialization of these products may be delayed or otherwise adversely affected.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If we or any of our collaborative partners terminate a collaborative arrangement, we may be
required to devote additional resources to product development and commercialization or we may need
to cancel some development programs, which could adversely affect our product pipeline and
business.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If our direct selling efforts for our products fail, our business expansion plans could suffer,
and our ability to generate revenue will be diminished.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a relatively small sales force compared to our competitors. If our direct sales force
is not successful, or new additions to our sales team fail to gain traction among our customers, we
may not be able to increase market awareness and sales of our products. If we fail to establish our
systems in the marketplace, it could have a negative effect on our ability to sell subsequent
systems and hinder the planned expansion of our business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If our distributor relationships are not successful, our ability to market and sell our products
would be harmed and our financial performance will be adversely affected.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We depend on relationships with distributors for the marketing and sales of our products in
the Industrial and Clinical Molecular Diagnostic markets in various geographic regions, and we have
a limited ability to influence their efforts. We expect to continue to rely substantially on our
distributor relationships for sales into other markets or geographic regions, which is key to our
long-term growth potential. Relying on distributors for our sales and marketing could harm our
business for various reasons, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>agreements with distributors may terminate prematurely due to disagreements or may
result in litigation between the partners;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to renew existing distributor agreements on acceptable terms;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our distributors may not devote sufficient resources to the sale of products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our distributors may be unsuccessful in marketing our products;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>our existing relationships with distributors may preclude us from entering into
additional future arrangements with other distributors; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>we may not be able to negotiate future distributor agreements on acceptable terms.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>We may be subject to third-party claims that require additional licenses for our products and we
could face costly litigation, which could cause us to pay substantial damages and limit our
ability to sell some or all of our products.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our industry is characterized by a large number of patents, claims of which appear to overlap
in many cases. As a result, there is a significant amount of uncertainty regarding the extent of
patent protection and infringement. Companies may have pending patent applications, which are
typically confidential for the first eighteen months following filing, that cover technologies we
incorporate in our products. Accordingly, we may be subjected to substantial damages for past
infringement or be required to modify our products or stop selling them if it is ultimately
determined that our products infringe a third party&#146;s proprietary rights. Moreover, from time to
time, we receive correspondence and other communications from companies that ask us to evaluate the
need for a license of patents they hold, and indicating or suggesting that we need a license to
their patents in order to offer our products and services or to conduct our business operations.
Even if we are successful in defending against claims, we could incur substantial costs in doing
so. Any litigation related to claims of patent infringement could consume our resources and lead to
significant damages, royalty payments or an injunction on the sale of certain products. Any
additional licenses to patented technology could obligate us to pay substantial additional
royalties, which could adversely impact our product costs and harm our business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If we fail to maintain and protect our intellectual property rights, our competitors could use our
technology to develop competing products and our business will suffer.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our competitive success will be affected in part by our continued ability to obtain and
maintain patent protection for our inventions, technologies and discoveries, including our
intellectual property that includes technologies that we license. Our ability to do so will depend
on, among other things, complex legal and factual questions. We have patents related to some of our
technology and have licensed some of our technology under patents of others. We cannot assure you
that our patents and licenses will successfully preclude others from using our technology. Our
pending patent applications may lack priority over applications submitted by third parties or
may not result in the issuance of patents. Even if issued, our patents may not be sufficiently
broad to provide protection against competitors with similar technologies and may be challenged,
invalidated or circumvented.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to patents, we rely on a combination of trade secrets, copyright and trademark
laws, nondisclosure agreements, licenses and other contractual provisions and technical measures to
maintain and develop our competitive position with respect to intellectual property. Nevertheless,
these measures may not be adequate to safeguard the technology underlying our products. For
example, employees, consultants and others who participate in the development of our products may
breach their agreements with us regarding our intellectual property, and we may not have adequate
remedies for the breach. We also may not be able to effectively protect our intellectual property
rights in some foreign countries, as many countries do not offer the same level of legal protection
for intellectual property as the United States. Furthermore, for a variety of reasons, we may
decide not to file for patent, copyright or trademark protection outside of the United States. Our
trade secrets could become known through other unforeseen means. Notwithstanding our efforts to
protect our intellectual property, our competitors may independently develop similar or alternative
technologies or products that are equal or superior to our technology. Our competitors may also
develop similar products without infringing on any of our intellectual property rights or design
around our proprietary technologies. Furthermore, any efforts to enforce our proprietary rights
could result in disputes and legal proceedings that could be costly and divert attention from our
business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>We may need to initiate lawsuits to protect or enforce our patents, which would be expensive and,
if we lose, may cause us to lose some, if not all, of our intellectual property rights, and
thereby impair our ability to compete.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on patents to protect a large part of our intellectual property. To protect or enforce
our patent rights, we may initiate patent litigation against third parties, such as infringement
suits or interference proceedings. These lawsuits could be expensive, take significant time and
divert management&#146;s attention from other business concerns. They would also put our patents at risk
of being invalidated or interpreted narrowly, and our patent applications at risk of not issuing.
We may also provoke these third parties to assert claims against us. Patent law relating to the
scope of claims in the technology fields in which we operate is still evolving and, consequently,
patent positions in our industry are generally uncertain. We cannot assure you that we would
prevail in any of these suits or that the damages or other remedies awarded, if any, would be
commercially valuable. During the course of these suits, there may be public announcements of the
results of hearings, motions and other interim proceedings or developments in the litigation. Any
public announcements related to these suits could cause our stock price to decline.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>Our sales cycle can be lengthy, which can cause variability and unpredictability in our operating
results.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sales cycles for our systems products can be lengthy, which makes it more difficult for us
to accurately forecast revenues in a given period, and may cause revenues and operating results to
vary significantly from period to period. Sales of our products to the Industrial market often
involve purchasing decisions by large public and private institutions, and any purchases can
require many levels of pre-approval. In addition, many of these sales depend on these institutions
receiving research grants from various federal agencies, which grants vary considerably from year
to year in both amount and timing due to the political process. As a result, we may expend
considerable resources on unsuccessful sales efforts or we may not be able to complete transactions
on the schedule anticipated.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>Our international operations subject us to additional risks and costs.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our international operations have expanded recently. These operations are subject to a number
of difficulties and special costs, including:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>compliance with multiple, conflicting and changing governmental laws and regulations;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>laws and business practices favoring local competitors;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential for exchange and currency risks;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>potential difficulty in collecting accounts receivable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>import and export restrictions and tariffs;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties staffing and managing foreign operations;
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->11<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>difficulties and expense in enforcing intellectual property rights;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>business risks, including fluctuations in demand for our products and the cost and
effort to conduct international operations and travel abroad to promote international
distribution, and global economic conditions;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>multiple conflicting tax laws and regulations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>political and economic instability.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to expand our international sales and marketing activities, including through our
subsidiary in France, and enter into relationships with additional international distribution
partners. We may not be able to attract international distribution partners that will be able to
market our products effectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our international operations could also increase our exposure to international laws and
regulations. If we cannot comply with foreign laws and regulations, which are often complex and
subject to variation and unexpected changes, we could incur unexpected costs and potential
litigation. For example, the governments of foreign countries might attempt to regulate our
products and services or levy sales or other taxes relating to our activities. In addition, foreign
countries may impose tariffs, duties, price controls or other restrictions on foreign currencies or
trade barriers, any of which could make it more difficult for us to conduct our business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>The nature of some of our products may also subject us to export control regulation by the US
Department of State and the Department of Commerce. Violations of these regulations can result in
monetary penalties and denial of export privileges.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our SmartCycler and GeneXpert products are marketed in Europe under the CE IVD mark, and we
intend to introduce additional products under the CE IVD mark as we pursue our expansion plans. Our
use of the CE IVD mark is based on self declarations of conformity with stated directives and
standards of the European Parliament and Council and is subject to review by competent authorities
in Europe. Our recently acquired subsidiary, Cepheid AB, successfully introduced CE IVD-marked
products that require independent third party review recognized by competent authorities, for
example, a CMV test for use on our SmartCycler instrument. Any finding of non-conformity under such
a review could prevent or otherwise adversely affect our ability to market products in Europe and
result in other consequences, including both criminal sanctions, such as the imposition of fines or
penalties, and civil claims for damages from persons suffering damage as a result of the
non-conformity.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If we fail to retain key members of our staff, our ability to conduct and expand our business
would be impaired.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are highly dependent on the principal members of our management and scientific staff. The
loss of services of any of these persons could seriously harm our product development and
commercialization efforts. In addition, we require skilled personnel in areas such as microbiology,
clinical and sales, marketing and finance. Attracting, retaining and training personnel with the
requisite skills remains challenging, and, as general economic conditions improve, is becoming
increasingly competitive, particularly in the Silicon Valley area of California where our main
office is located. If at any point we are unable to hire, train and retain a sufficient number of
qualified employees to match our growth, our ability to conduct and expand our business could be
seriously reduced.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If we become subject to claims relating to improper handling, storage or disposal of hazardous
materials, we could incur significant cost and time to comply.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our research and development processes involve the controlled storage, use and disposal of
hazardous materials, including biological hazardous materials. We are subject to foreign, federal,
state and local regulations governing the use, manufacture, storage, handling and disposal of
materials and waste products. We may incur significant costs complying with both existing and
future environmental laws and regulations. In particular, we are subject to regulation by the
Occupational Safety and Health Administration (&#147;OSHA&#148;) and the Environmental Protection
Agency (&#147;EPA&#148;), and to regulation under the Toxic Substances Control Act and the Resource
Conservation and Recovery Act in the United States. OSHA or the EPA may adopt regulations that may
affect our
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">research and development programs. We are unable to predict whether any agency will
adopt any regulations that would have a material adverse effect on our operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The risk of accidental contamination or injury from hazardous materials cannot be eliminated
completely. In the event of an accident, we could be held liable for any damages that result, and
any liability could exceed the limits or fall outside the coverage of our workman&#146;s compensation
insurance. We may not be able to maintain insurance on acceptable terms, if at all.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>If a catastrophe strikes our manufacturing facilities, we may be unable to manufacture our
products for a substantial amount of time and we would experience lost revenue.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our manufacturing facilities are located in Sunnyvale, California, Bromma, Sweden, and
Bothell, Washington. Although we have business interruption insurance, our facilities and some
pieces of manufacturing equipment are difficult to replace and could require substantial
replacement lead-time. Various types of disasters, including earthquakes, fires, floods and acts of
terrorism, may affect our manufacturing facilities. Earthquakes are of particular significance
since our primary manufacturing facilities in California are located in an earthquake-prone area.
In the event our existing manufacturing facilities or equipment is affected by man-made or natural
disasters, we may be unable to manufacture products for sale or meet customer demands or sales
projections. If our manufacturing operations were curtailed or ceased, it would seriously harm our
business.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>We might require additional capital to support business growth, and such capital might not be
available.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We may need to engage in additional equity or debt financing to support business growth and
respond to business challenges, which include the need to develop new products or enhance existing
products, conduct clinical trials, enhance our operating infrastructure and acquire complementary
businesses and technologies. Equity and debt financing, however, might not be available when needed
or, if available, might not be available on terms satisfactory to us. In addition, to the extent
that additional capital is raised through the sale of equity or convertible debt securities, the
issuance of these securities could result in dilution to our shareholders. In addition, these
securities may be sold at a discount from the market price of our common stock and may include
rights, preferences or privileges senior to those of our common stock. If we are unable to obtain
adequate financing or financing on terms satisfactory to us, our ability to continue to support our
business growth and to respond to business challenges could be significantly limited.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>Compliance with regulations governing public company corporate governance and reporting is complex
and expensive.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many laws and regulations, notably those adopted in connection with the Sarbanes-Oxley Act of
2002 by the SEC and the NASDAQ Global Market, impose obligations on public companies, such as ours,
which have increased the scope, complexity, and cost of corporate governance, reporting, and
disclosure practices. Our implementation of these reforms and enhanced new disclosures has required
and will continue to require substantial management time and oversight and requires us to incur
significant additional accounting and legal costs.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:1%"><B><I>Our business could be harmed by adverse economic conditions in our target markets or reduced
spending in our industry.</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business depends on the overall demand in our industry. The markets we serve are emerging
and the purchase of our products can be discretionary. Weak economic conditions in our target
markets, or a reduction in spending in our industry even if economic conditions improve, would
likely adversely impact our business, operating results and financial condition in a number of
ways, including lower prices for our products and reduced unit sales.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left">
<A name="104"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>USE OF PROCEEDS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If shares are resold by the Selling Stockholders, we will not receive any proceeds from such
sale. The shares will be offered for the respective accounts of the Selling Stockholders. See the
sections titled &#147;Selling Stockholders&#148; and &#147;Plan of Distribution&#148; below.
</DIV>

<DIV align="left">
<A name="105"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><B>SELLING STOCKHOLDERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The shares that may be offered from time to time by the Selling Stockholders named below
pursuant to this prospectus have been acquired by the Selling Stockholders upon exercise of
purchase rights granted under the 2000 Employee Stock Purchase Plan (the &#147;<B><I>ESPP</I></B>&#148;) and constitute
&#147;restricted securities&#148; or &#147;control securities&#148; within the meaning of the Form S-8.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the name of each Selling Stockholder who holds 1,000 or more
shares of our Common Stock, the amount of common stock owned by him or her as of March&nbsp;17, 2008,
the amount of common stock that he or she may offer and the amount of common stock that will be
owned by him or her subsequent to this offering. Since each Selling Stockholder may sell all or
some portion of the shares of his or her common stock, only an estimate (assuming that he sells all
of the shares offered hereby) can be given as to the number of shares of common stock that will be
owned by him or her subsequent to this offering. To our knowledge, none of the Selling
Stockholders is a broker-dealer or an affiliate of a broker-dealer. Certain unnamed
non-affiliates, each of whom may sell up to 1,000 shares, may also use this prospectus for reoffers
and resales.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Shareholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>After Offering</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adornato, Brant T.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,623</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,039</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Avila, Manuel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,069</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">780</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">289</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bell, Michael</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">574</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,243</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bhullar, Manjit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">356</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,405</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Biehn, Richard R</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,470</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,099</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,371</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bojorquez, Anthony D</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,396</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">602</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,794</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Botal, Paul M</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,351</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">839</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bottari, Patricia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,867</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">968</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">899</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Bowen, Nicki</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,286</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,136</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Brabant, William H.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,098</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Braden, Karen</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">659</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chan, Sandy</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">748</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chang, Benny</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chang, Ron</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,068</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27,124</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chu, Anh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">645</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chu, Juliet L</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,993</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29,268</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Chui, Gloria</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,873</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,168</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Crane, David</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,407</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dailey, Peter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,631</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,161</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,470</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">de Grandpre, Justine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,709</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">DeLaurentis, Mark</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,643</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,169</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,474</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dias Lourenco, Francisco</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,080</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,485</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dority, Douglas</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,279</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,704</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,575</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Shareholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>After Offering</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finley, Sandra</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,465</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">665</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fitch, Jay</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,519</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,102</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,417</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Floyd, Mark B.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,323</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Francis, Michael</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gannon, Tanya</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,721</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Glass, Jennifer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,482</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Griffin , Steven</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,476</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">382</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,094</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Guinivere, David T</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,442</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">330</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hambleton, Larry D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">456</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hartter, Michael</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,198</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Hoang, Loan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,289</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,542</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Huynh, Michelle D.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,678</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,873</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inserra, Trish</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,307</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,595</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,712</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Iqbal, Shazi S</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,816</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,038</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Jones, Harold Martin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,480</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">525</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,955</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kanazawa, Eric Y</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,246</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,083</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">163</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kibiti, Elvis</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,142</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">740</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">402</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ko, Mary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,297</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,914</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Kutner, Brian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,765</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,029</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,736</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">La, Trinh Q</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,212</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">LaFave, Jeffrey J</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,621</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">792</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">829</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lau, Sam</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,929</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,256</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Le Coupanec, Patricia</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,612</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,090</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,522</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Le, Khanh</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,065</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">628</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,437</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Le, Trang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,989</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leonard, Sally</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,227</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,596</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,631</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Litavis, Joseph</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,146</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,020</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lucero, Joseph</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,793</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,577</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">216</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lucey, Michael J</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,428</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Lund, Kevin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,002</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,041</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">961</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">MacDonald, Brian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">607</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,607</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Mizoguchi, Tadashi J</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,367</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">947</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">420</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Moyer, Krista</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,427</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">830</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">597</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Myhre, Michael</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,278</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,953</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nagula, Gangadhar</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,684</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">676</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nguyen, Lan</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,331</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nguyen, Phuong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,726</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">638</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,088</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nguyen, Trang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,136</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">727</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,409</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nguyen, Trung</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,738</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">703</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,035</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Nicewonger, John</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,988</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">795</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,193</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Otaki, Kaoru</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,882</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">876</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,006</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patel, Seema</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,609</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">868</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,741</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Paul, Kendra L</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,984</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">569</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Popiel, Mark</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,584</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">258</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,326</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Primeau, Michael J</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,145</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,735</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,410</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Owned Prior to</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Number of Shares Owned</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Name of Shareholder</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Offering</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Registered</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>After Offering</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Reyes, Robertta</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,205</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">275</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">930</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Rodgers, Rick</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,054</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Romero, David</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,516</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">381</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,135</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ruhfel, Robert</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,100</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,320</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,780</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Saifi, Kianoush</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Satya, Malini</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">825</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,891</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shah, Nila</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,207</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">985</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Shukla, Pragya</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,249</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">689</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">560</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stevenson, Sandi</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,398</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">324</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,074</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sun, Haidong</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,133</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tang, Kiet C.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,022</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,190</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tang, Kristine</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,832</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,162</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,670</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tholath, Julie</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,539</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,580</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Thompkins, Linda M</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,512</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,593</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tipton, Jared</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,562</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Truong, Thao</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,996</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">671</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,325</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tso, Jacqueline</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,762</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Van Atta, Reuel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,119</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,543</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,576</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wallace, Stacey E</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,404</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">839</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">565</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wang, Jian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,317</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Weir, Fred</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,312</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">186</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,126</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Whitmore, Joseph</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,579</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wong, Edith</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,011</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wong, Wendy W.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,174</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">731</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,443</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Woods, Robert</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,070</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,964</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Wu, Yuh-Huey</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16,826</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,374</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,452</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xia, Andrew</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,217</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">858</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,359</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Xiao, Vivian</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,804</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">644</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yu, Wei</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,266</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,226</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,040</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Yuan, Lin</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">851</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,479</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left">
<A name="106"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PLAN OF DISTRIBUTION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this prospectus is to allow the Selling Stockholders to offer for sale and sell
all or a portion of their shares acquired pursuant to the exercise of stock purchase rights granted
under the ESPP. The Selling Stockholders and their successors, including their transferees,
pledgees or donees or their successors, may sell the shares of common stock offered under this
prospectus directly to purchasers or through broker-dealers or agents, who may receive compensation
in the form of discounts, concessions or commissions from the selling stockholder or the
purchasers. These discounts, concessions or commissions as to any particular broker-dealer or
agent may be in excess of those customary in the types of transactions involved. Neither we nor
the Selling Stockholders can presently estimate the amount of this compensation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The common stock offered under this prospectus may be sold in one or more transactions at
fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing
market prices, at varying prices determined at the time of sale, or at negotiated prices. These
sales may be effected in transactions, which may involve crosses or block transactions:
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on any national securities exchange or U.S. inter-dealer system of a registered
national securities association on which the common stock may be listed or quoted at the
time of sale;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the over-the-counter market; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in transactions otherwise than on these exchanges or systems or in the over-the-counter
market.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate proceeds to the Selling Stockholder from the sale of the common stock offered by
them will be the purchase price of the common stock less discounts and commissions, if any. We
will not receive any of the proceeds from this offering.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our outstanding common stock is listed for trading on the NASDAQ Global Market.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Selling Stockholders and any broker-dealers or agents that participate in the sale of the
common stock may be &#147;underwriters&#148; within the meaning of Section&nbsp;2(11) of the Securities Act. Any
discounts, commissions, concessions or profit they earn on any resale of the shares may be
underwriting discounts and commissions under the Securities Act. If the Selling Stockholder is an
&#147;underwriter&#148; within the meaning of Section&nbsp;2(11) of the Securities Act, the Selling Stockholder
will be subject to the prospectus delivery requirements of the Securities Act.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule
144 of the Securities Act may be sold under Rule&nbsp;144 of the Securities Act rather than pursuant to
this prospectus. A Selling Stockholder may not sell any common stock described in this prospectus
and may not transfer, devise or gift these securities by other means not described in this
prospectus.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent required, the specific common stock to be sold, the names of the Selling
Stockholder, the respective purchase prices and public offering prices, the names of any agent,
dealer or underwriter, and any applicable commissions or discounts with respect to a particular
offer will be set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus is a part. This
prospectus also may be used, with our consent, by donees or pledgees of the Selling Stockholder, or
by other persons acquiring shares and who wish to offer and sell shares under circumstances
requiring or making desirable its use.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers.
</DIV>

<DIV align="left">
<A name="107"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>LEGAL MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The validity of the shares of common stock offered hereby will be passed upon for us by
Fenwick&nbsp;&#038; West LLP, Mountain View, California.
</DIV>
<DIV align="left">
<A name="108"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXPERTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ernst &#038; Young LLP, independent registered public accounting firm, has audited our consolidated
financial statements and schedule included in our Annual Report on Form 10-K for the year ended
December&nbsp;31, 2007, and the effectiveness of our internal control over financial reporting as of
December&nbsp;31, 2007, as set forth in their reports, which are incorporated by reference in this
prospectus and elsewhere in the registration statement. Our financial statements and schedule are
incorporated by reference in reliance on Ernst &#038; Young LLP&#146;s reports, given on their authority as
experts in accounting and auditing.
</DIV>
<DIV align="left">
<A name="109"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to the informational reporting requirements of Exchange Act, and are required
to file reports, proxy statements and other information with the SEC. All such filings are
available at the SEC Public
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Reference Room at 100 F Street, N.E., Washington, DC 20549. Please
call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. Our filings
are also available free of charge at the website of the SEC at www.sec.gov or our website at
www.cepheid.com. A copy of any document incorporated by reference in the registration statement of
which this prospectus forms a part but which is not delivered with this prospectus will be provided
by us without charge to any person to whom this prospectus has been delivered upon oral or written
request to that person. Requests for documents should be directed to Cepheid, Attention: General
Counsel, 904 Caribbean Drive, Sunnyvale, CA, telephone number (408)&nbsp;541-4191.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where we summarize in this prospectus the material terms of any contract, agreement or other
document filed as an exhibit to the registration statement, the summary information provided in the
prospectus is less complete than the actual contract, agreement or document. You should refer to
the exhibits to the registration statement of which this prospectus forms a part for copies of the
actual contract, agreement or document.
</DIV>

<DIV align="left">
<A name="110"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INCORPORATION OF DOCUMENTS BY REFERENCE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by us with the SEC pursuant to the Securities Act and the
Exchange Act, are incorporated herein by reference into this prospectus:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of Cepheid&#146;s earlier registration statements on Form S-8 (registration
numbers 333-131372, 333-122379, 333-117744, 333-106181, 333-91472, 333-65844, and
333-41682) filed with the Securities and Exchange Commission on January&nbsp;30, 2006,
January&nbsp;28, 2005, July&nbsp;29, 2004, June&nbsp;17, 2003, July&nbsp;28, 2002, July&nbsp;25, 2001 and July
18, 2000, respectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December
31, 2007 filed with the Commission on February&nbsp;29, 2008, pursuant to Section&nbsp;13 of the
Exchange Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s Proxy Statement on Schedule&nbsp;14A filed with the Commission on
March&nbsp;25, 2008; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of the Registrant&#146;s common stock as set forth in the
Registration Statement on Form 8-A filed with the Commission on June&nbsp;6, 2000, File
No.&nbsp;000-30755, including any amendments or reports filed with the Commission for the
purpose of updating such description.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, all documents which we file pursuant to Sections&nbsp;13(a), 13(c), 14 and 15(d) of
the Exchange Act after the date of this prospectus and prior to the termination of this offering,
shall be deemed to be incorporated by reference herein and to be a part of this prospectus from the
date of the filing of such documents. Any statement contained in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained in this prospectus, or in any other
subsequently filed document which also is or is deemed to be incorporated by reference in this
prospectus, modifies or supersedes such statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>PART II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</B>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3.&nbsp; Incorporation of Documents by Reference.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following documents filed by the Registrant with the Commission pursuant to the Securities
Act and the Securities Exchange Act of 1934, as amended (the &#147;<B><I>Exchange Act</I></B>&#148;), are incorporated
herein by reference:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each of the Registrant&#146;s earlier registration statements on Form S-8
(registration numbers 333-131372, 333-122379, 333-117744, 333-106181, 333-91472,
333-65844, and 333-41682) filed with the Commission on January&nbsp;30, 2006, January&nbsp;28,
2005, July&nbsp;29, 2004, June&nbsp;17, 2003, July&nbsp;28, 2002, July&nbsp;25, 2001 and July&nbsp;18, 2000,
respectively;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December
31, 2007 filed with the Commission on February&nbsp;29, 2008, pursuant to Section&nbsp;13 of the
Exchange Act;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Registrant&#146;s Proxy Statement on Schedule&nbsp;14A filed with the Commission on
March&nbsp;25, 2008; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The description of the Registrant&#146;s common stock as set forth in the
Registration Statement on Form 8-A filed with the Commission on June&nbsp;6, 2000, File
No.&nbsp;000-30755, including any amendments or reports filed with the Commission for the
purpose of updating such description.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All documents subsequently filed by the Registrant pursuant to Sections&nbsp;13(a), 13(c), 14 and
15(d) of the Exchange Act, prior to the filing of a post-effective amendment which indicates that
all securities offered hereby have been sold or which deregisters all securities then remaining
unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the
date of the filing of such documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4.&nbsp; Description of Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Interests of Named Experts and Counsel.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attorneys at Fenwick &#038; West LLP beneficially own approximately 2,222 shares of Cepheid&#146;s
Common Stock.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Indemnification of Directors and Officers.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sections&nbsp;204 and 317 of the California General Corporation Law authorize a corporation to
indemnify its directors, officers, employees and other agents in terms sufficiently broad to permit
indemnification (including reimbursement for expenses) under certain circumstances for liabilities
arising under the Securities Act. Pursuant to Sections&nbsp;204 and 317 of the California Corporations
Code, as amended, the Registrant has included in its Articles of Incorporation and Bylaws
provisions regarding the indemnification of officers and directors of the Registrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Article&nbsp;6 of the Registrant&#146;s Restated Articles of Incorporation, as amended, provides as
follows: &nbsp;&#147;The Corporation shall, to the maximum extent and in a manner permitted by the Code,
indemnify each of its Directors against expenses (as defined in Section 317(a) of the Code),
judgments, fines, settlements and other amounts actually and reasonably incurred in connection with
any proceeding (as defined in Section 317(a) of the Code), arising by reason of the fact that such
person is or was a Director of the Corporation. For purposes of this Article&nbsp;6, a &#147;Director&#148; of the
Corporation includes any person (i)&nbsp;who is or was a Director of the Corporation, (ii)&nbsp;who is or was
serving at the request of the Corporation as a director of another foreign or domestic corporation,
partnership, joint venture, trust or other enterprise, or (iii)&nbsp;who was a director of a corporation
which was a predecessor corporation of the Corporation or of another enterprise at the request of
such predecessor corporation.&#148;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Article&nbsp;VII of the Registrant&#146;s Restated Bylaws, as amended, provides as follows: &#147;To the
fullest extent permitted by law, this corporation shall indemnify its directors, officers,
employees and other persons described in Section 317(a) of the California Corporations Code,
including persons formerly occupying any such position, against all expenses, judgments, fines,
settlements and other amounts actually and reasonably incurred by them in connection with any
&#147;proceeding&#148;, as that term is used in such Section and including an action by or in the right of
the corporation, by reason of the fact that such person is or was a person described by such
Section. &#147;Expenses&#148;, as used in this Bylaw, shall have the same meaning as in Section 317(a) of the
California Corporations Code.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Registrant has entered into indemnification agreements with its officers and directors,
indemnifying them against certain potential liabilities that may arise as a result of their service
to the Registrant, and providing for certain other protections. The Registrant also maintains an
insurance policy insuring its directors and officers against liability for certain acts and
omissions while acting in their official capacities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Exemption from Registration Claimed.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sales of our securities to the Selling Stockholders were determined to be exempt from
registration under the Securities Act in reliance upon Section&nbsp;4(2) of the Securities Act as
transactions by an issuer not involving any public offering. All of the Selling Stockholders had
adequate access, through the Registrant&#146;s publicly-filed reports, to information about the
Registrant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;8. Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filing</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 6pt">
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2000 Employee Stock Purchase<BR>
Plan, as amended
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-8
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-106181
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 4.1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/17/2003
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Articles
of Incorporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-34340
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 3.1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4/7/2000
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">10-Q
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 3.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/31/2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Common Stock<BR>
Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-34340
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 4.2
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5/18/2000
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Common Stock<BR>
Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">10-Q
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 4.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/31/2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Agreement dated
September&nbsp;26, 2002 between
Cepheid and Computershare
Trust Company as Rights
Agent, which includes as
Exhibit&nbsp;A the form of
Certificate of Determination
of Series&nbsp;A Junior
Participating Preferred
Stock, as Exhibit&nbsp;B the
Summary of Stock Purchase
Rights and as Exhibit&nbsp;C the
Form of Rights Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">8-A
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 3.02
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/4/2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Determination
specifying the terms of the
Series&nbsp;A Junior Participating
Preferred Stock of
registrant, as filed with the
Secretary of State of the
State of California on
October&nbsp;2, 2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">8-A
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; 3.02
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/4/2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="9" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filing</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 6pt">
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Fenwick &#038; West LLP
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent
Registered Public Accounting
Firm
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Fenwick &#038; West LLP<BR>

(filed as part of
Exhibit&nbsp;5.1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (see
signature page)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9. Undertakings</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>(a)&nbsp;The undersigned Registrant hereby undertakes:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section&nbsp;10(a)(3) or the Securities Act of 1933;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to reflect in the prospectus any facts or events arising after the effective date of
the registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth in
the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum offering range may
be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than 20&nbsp;percent change in the maximum
aggregate offering price set forth in the &#147;Calculation of Registration Fee&#148; table in the effective
Registration Statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;to include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>provided, however</I>, that paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the Registrant pursuant to Section&nbsp;13 or
Section 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial <I>bona fide </I>offering thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left:0%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering. &nbsp;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;The undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant&#146;s annual report pursuant
to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable,
each filing of an employee benefit plan&#146;s annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->II-3<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Registration Statement shall be
deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial <I>bona fide </I>offering
thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-4<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left">
<A name="111"></A>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Sunnyvale, State of California, on this 28th day of
March, 2008.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&nbsp;&nbsp;&nbsp;<B>CEPHEID</B>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                                          /s/ <FONT style="font-variant: SMALL-CAPS">John L. Bishop</FONT>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">John L. Bishop&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>POWER OF ATTORNEY</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each person whose signature appears below constitutes and appoints John L. Bishop and Joseph
H. Smith his true and lawful attorneys in fact and agents, each acting alone, with full power of
substitution and resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign any or all amendments (including post-effective amendments) to the registration
statement on Form S-8, and to file the same, with all exhibits thereto, and all documents in
connection therewith, with the Commission, granting unto said attorneys-in-fact and agents, full
power and authority to do and perform each and every act and thing requisite and necessary to be
done in and about the premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said attorneys-in-fact and agents, each acting
alone, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->II-5<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, this registration
statement has been signed below by the following persons in the
capacities and on the date indicated.
</div>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Signature</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Title</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Thomas L. Gutshall</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chairman of the Board
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas L. Gutshall
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">John L. Bishop</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
John L. Bishop
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(<I>Principal Executive Officer</I>)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Michael T. Myhre</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Corporate Controller
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Michael T. Myhre
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">(<I>Acting Principal Financial and Accounting Officer</I>)</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Thomas D. Brown</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Thomas D. Brown
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/<FONT style="font-variant: SMALL-CAPS">
Robert J. Easton</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March 28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Robert J. Easton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Cristina H. Kepner</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Cristina H. Kepner
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Dean O. Morton</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Dean O. Morton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/&nbsp;<FONT style="font-variant: SMALL-CAPS">Mitchell D. Mroz</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Mitchell D. Mroz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
David H. Persing, M.D., Ph.D.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">/s/ <FONT style="font-variant: SMALL-CAPS">Hollings C. Renton</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Director
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">March&nbsp;28, 2008</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
Hollings C. Renton
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->II-6<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>INDEX TO EXHIBITS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="28%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="11" style="border-bottom: 1px solid #000000"><B>Incorporated by Reference</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filing</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Filed</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description of Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Form</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>File No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Date</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Herewith</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2000 Employee Stock Purchase<BR>
Plan, as amended
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-8
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-106181 &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">6/17/2003 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Articles
of Incorporation
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-34340 &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">4/7/2000 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">10-Q
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.01</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/31/2002 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Common Stock<BR>
Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">S-1
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">333-34340 &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">5/18/2000 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specimen Common Stock<BR>
Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">10-Q
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.01</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">7/31/2002 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rights Agreement dated
September&nbsp;26, 2002 between
Cepheid and Computershare
Trust Company as Rights
Agent, which includes as
Exhibit&nbsp;A the form of
Certificate of Determination
of Series&nbsp;A Junior
Participating Preferred
Stock, as Exhibit&nbsp;B the
Summary of Stock Purchase
Rights and as Exhibit&nbsp;C the
Form of Rights Certificate
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">8-A
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.02</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/4/2002 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">4.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Determination
specifying the terms of the
Series&nbsp;A Junior Participating
Preferred Stock of
registrant, as filed with the
Secretary of State of the
State of California on
October&nbsp;2, 2002
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">8-A
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.02</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">10/4/2002 &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">5.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinion of Fenwick &#038; West LLP
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Independent
Registered Public Accounting
Firm
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">23.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consent of Fenwick &#038; West LLP
(filed as part of
Exhibit&nbsp;5.1)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">24.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Power of Attorney (see
signature page)
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp; &nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">X</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


&nbsp;



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

</BODY>
</HTML>
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sv8
Table of Contents
As filed with the Securities and Exchange Commission on March 28, 2008
Registration No: 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
CEPHEID
(Exact name of registrant as specified in its charter)
California
77-0441625
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
904 Caribbean Drive Sunnyvale, CA
94089-1302
(Address of Principal Executive Offices)
(Zip Code)
2000 EMPLOYEE STOCK PURCHASE PLAN (as amended)
(Full Title of the Plans)
John L. Bishop
Chief Executive Officer
Cepheid
904 Caribbean Drive
Sunnyvale, CA 94086-1302
(Name and Address of Agent For Service)
(408) 541-4191
(Telephone Number, Including Area Code, of Agent For Service)
Copies to:
Douglas N. Cogen
Jeffrey R. Vetter
FENWICK & WEST LLP
555 California Street
San Francisco, CA 94104
Telephone: (415) 875-2300
Facsimile: (415)281-1350
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See definition of "large accelerated
filer," " accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
(Check one)
Large accelerated filer
þ
Accelerated filer
o
Non-accelerated filer
o
(Do not check if a smaller reporting company)
Smaller reporting company
o
CALCULATION OF REGISTRATION FEE
Amount
Proposed Maximum
Proposed Maximum
Amount of
Title of Securities
to be
Offering Price
Aggregate Offering
Registration
to be Registered
Registered
(1)
per Share
(2)
Price
Fee
Common Stock
400,000
$
24.11
$9,644,000.00
$379.01
(1)
Pursuant to Rule 416(a), this registration statement also covers any additional securities
that may be offered or issued in connection with any stock split, stock dividend or similar
transaction.
(2)
Estimated solely for the purpose of computing the amount of registration fee in accordance
with Rules 457(c) and (h) promulgated under the Securities Act of 1933, as amended, based on
the average of the high and low prices of Cepheid's Common Stock reported on the NASDAQ Global
Market on March 24, 2008.
Table of Contents
EXPLANATORY NOTE
Under cover of this Registration Statement on Form S-8 (the "
Form S-8
") is a prospectus for
common stock of Cepheid prepared in accordance with Part I of Form S-3 under the Securities Act of
1933, as amended (the "
Securities Act
"). This prospectus has been prepared pursuant to General
Instruction C of Form S-8, in accordance with the requirements of Part I of Form S-3, and may be
used for reoffers and resales on a continuous or delayed basis in the future of up to an aggregate
of 400,000 shares of common stock, consisting of (i) shares that have been issued to certain
employees of Cepheid pursuant to Cepheid's 2000 Employee Stock Purchase Plan, as amended (the
"
ESPP
"), pursuant to the terms of such plan, prior to the filing of this Form S-8 and that
constitute "restricted securities" or "control securities" within the meaning of the Form S-8 and
(ii) shares automatically reserved on each of January 1, 2007 and 2008 for issuance in the future
under the ESPP, pursuant to the terms of such plan.
Table of Contents
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1. Plan Information. (1)
Item 2. Registrant Information and Employee Plan Annual Information. (1)
(1)
Information required by this Item to be contained in the Section 10(a) prospectus is omitted
from this Form S-8 in accordance with Rule 428 under the Securities Act and the Note to Part I
of Form S-8. In accordance with the rules and regulations of the Commission and the
instructions to Form S-8, such documents are not being filed with the Commission either as
part of this Form S-8 or as prospectuses or prospectus supplements pursuant to Rule 424 under
the Securities Act.
A prospectus prepared pursuant to General Instruction C of Form S-8, in accordance with the
requirements of Part I of Form S-3, which covers reoffers and resales on a continuous or delayed
basis of up to 130,411 shares of common stock previously issued or available to be issued to
stockholders pursuant to the exercise of purchase rights pursuant to the 2000 Employee Stock
Purchase Plan, is set forth below.
Table of Contents
CEPHEID
130,411 SHARES OF COMMON STOCK, NO PAR VALUE
This prospectus relates to 130,411 shares of common stock Cepheid ("
Cepheid
") that may be
offered from time to time by certain selling stockholders named in this prospectus (the "
Selling
Stockholders
") for their own accounts.
The Selling Stockholders may sell the shares in the open market at prevailing market prices on
the NASDAQ Global Market, or in private transactions at negotiated prices. The Selling
Stockholders may sell the shares directly, or may sell them through brokers or dealers. Cepheid
will not receive any of the proceeds from sales made under this prospectus. Cepheid is paying the
expenses incurred in registering these shares, but all selling and other expenses incurred by each
of the Selling Stockholders will be borne by that Selling Stockholder.
Our common stock is traded on the NASDAQ Global Market under the symbol "CPHD."
See "Risk Factors" beginning on page 4 to read about factors you should consider before buying
shares of our common stock.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved these securities or passed upon the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense
.
The date of this prospectus is March 28, 2008
1
TABLE OF CONTENTS
Page
Special Note Regarding Forward-Looking Information
3
The Company
3
Risk Factors
4
Use of Proceeds
14
Selling Stockholders
14
Plan of Distribution
16
Legal Matters
17
Experts
17
Where You Can Find More Information
17
Incorporation of Documents by Reference
18
EXHIBIT 5.1
EXHIBIT 23.1
No dealer, salesperson or other person is authorized to give any information or to represent
anything not contained in this prospectus. You must not rely on any unauthorized information or
representations. This prospectus is an offer to sell only the shares offered hereby, and only under
circumstances and in jurisdictions where it is lawful to do so. The information contained in this
prospectus is current only as of its date.
Except where the context requires otherwise, in this prospectus "company," "Cepheid,"
"Registrant," "we," "us" and "our" refer to Cepheid, a California corporation, and where
appropriate, its subsidiaries.
2
Table of Contents
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus includes or incorporates by reference forward-looking statements. All
statements contained in this prospectus and the documents incorporated by reference other than
statements of historical facts, including statements regarding our future results of operations and
financial position, our business strategy and plans and our objectives for future operations, are
forward-looking statements. The words "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions are intended to identify forward-looking
statements. We have based these forward-looking statements largely on our current expectations and
projections about future events and financial trends that we believe may affect our financial
condition, results of operations, business strategy, short-term and long-term business operations
and objectives, and financial needs. These forward-looking statements are subject to a number of
risks, uncertainties and assumptions, including those described in "Risk Factors." In light of
these risks, uncertainties and assumptions, the future events and trends discussed in this
prospectus may not occur and actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
We cannot guarantee future results, levels of activity, performance or achievements. Except
as required under applicable law, we are under no duty to update any of these forward-looking
statements after the date of this prospectus to conform these statements to actual results or
revised expectations.
THE COMPANY
We are a broad based molecular diagnostics company that develops, manufactures, and markets
fully-integrated systems for genetic testing in the Clinical Molecular Diagnostic, Industrial and
Biothreat markets. Our systems enable rapid, sophisticated molecular testing for organisms and
genetic-based diseases by automating otherwise complex manual laboratory procedures. Molecular
testing involves a number of complicated and time-intensive steps, including sample preparation,
DNA amplification and detection. Our easy-to-use systems integrate these steps and analyze complex
biological samples in our proprietary test cartridges. We are currently the only company to have
obtained Clinical Laboratory Improvement Amendments moderate complexity categorization for an
amplified molecular test system and an associated specific infectious disease test on the market in
the United States.
Our principal executive offices are located at 904 Caribbean Drive, Sunnyvale, California
94089-1189, and our telephone number is (408) 541-4191. Our website address is www.cepheid.com.
The information on, or that can be accessed through, our website is not part of this prospectus.
Cepheid
®
, the Cepheid logo, SmartCycler
®
, GeneXpert
®
and
I-CORE
®
and affigene
®
are registered trademarks of Cepheid. SmartCycler II,
Xpert, Actigenics and Sangtec are trademarks of Cepheid. All other trademarks, service marks or
trade names referred to in this report are the property of their respective owners.
3
Table of Contents
RISK FACTORS
You should carefully consider the risks and uncertainties described below, together with all
of the other information included in this prospectus, in considering our business and prospects.
The risks and uncertainties described below are not the only ones facing Cepheid. Additional risks
and uncertainties not presently known to us or that we currently deem immaterial also may impair
our business operations. The occurrence of any of the following risks could harm our business,
financial condition or results of operations.
We may not achieve profitability.
We have incurred operating losses in each period since our inception. We experienced net
losses of approximately $13.6 million in 2005, $26.0 million in 2006 and $21.4 million in 2007. As
of December 31, 2007, we had an accumulated deficit of approximately $154.9 million. Our ability to
become profitable will depend on our ability to continue to increase our revenues, which is subject
to a number of factors including our ability to successfully penetrate the Clinical Molecular
Diagnostic market, our ability to successfully market the GeneXpert system and develop effective
GeneXpert tests, the extent of our participation in the USPS BDS program and the operating
parameters of the USPS BDS program, which will affect the rate of our consumable products sold, the
success of our other collaborative programs, our ability to compete effectively against current and
future competitors, global economic and political conditions and the impact of Statement of
Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payment". Our ability to become
profitable also depends on our expense levels and product gross margin, which are also influenced
by a number of factors, including the resources we devote to developing and supporting our
products, the continued progress of our research and development of potential products, the ability
to gain FDA clearance for our products, our ability to improve manufacturing efficiencies, license
fees or royalties we may be required to pay, our ability to integrate acquired businesses and
technologies, acquisition-related costs and expenses and the potential need to acquire licenses to
new technology or to use our technology in new markets, which could require us to pay unanticipated
license fees and royalties in connection with these licenses. Our expansion efforts may prove more
expensive than we currently anticipate, and we may not succeed in increasing our revenues to offset
higher expenses. These expenses, among other things, may cause our net income and working capital
to decrease. If we fail to grow our revenue and manage our expenses and improve our product gross
margin, we may never achieve profitability. If we fail to do so, the market price of our common
stock will likely decline.
If we cannot successfully commercialize our products, our business could be harmed.
If our tests for use on the SmartCycler and GeneXpert systems do not gain continued market
acceptance, we will be unable to generate significant sales, which will prevent us from achieving
profitability. While we have received FDA clearance for our Xpert GBS, Xpert EV and Xpert MRSA
tests, these products may not continue to achieve commercial success. Many factors may affect the
market acceptance and commercial success of our products, including:
•
timely development of a menu of tests and reagents;
•
the results of clinical trials needed to support any regulatory approvals of our tests;
•
our ability to obtain requisite FDA or other regulatory clearances or approvals for our
tests under development on a timely basis;
•
demand for the tests and reagents we are able to introduce;
•
the timing of market entry for various tests for the GeneXpert and the SmartCycler
systems;
•
our ability to convince our potential customers of the advantages and economic value of
our systems and tests over competing technologies and products;
•
the breadth of our test menu relative to competitors;
•
the extent and success of our marketing and sales efforts; and
•
publicity concerning our systems and tests.
4
Table of Contents
In particular, we believe that the success of our business will depend in large part on our
ability to introduce additional tests for the Clinical Molecular Diagnostic market. We believe that
successfully building our business in the Clinical Molecular Diagnostic market is critical to our
long-term goals and success. We have limited ability to forecast future demand for our products in
this market. In addition, we have committed substantial funds to licenses that are required for us
to enter the Clinical Molecular Diagnostic market. If we cannot successfully penetrate the Clinical
Molecular Diagnostic market to exploit these licenses, these investments may not yield significant
returns, which could harm our business.
The regulatory approval process is expensive, time-consuming, and uncertain and may prevent us
from obtaining required approvals for the commercialization of some of our products.
In the Clinical Molecular Diagnostic market, our products are regulated as medical device
products by the FDA and comparable agencies of other countries. In particular, FDA regulations
govern activities such as product development, product testing, product labeling, product storage,
premarket clearance or approval, manufacturing, advertising, promotion, product sales, reporting of
certain product failures and distribution. Some of our products, depending on their intended use,
will require premarket approval ("PMA") or 510(k) clearance from the FDA prior to marketing. The
510(k) clearance process usually takes from three to four months from submission but can take
longer. The PMA process is much more costly, lengthy, and uncertain and generally takes from six
months to one year or longer from submission. Clinical trials are generally required to support
both PMA and 510(k) submissions. Certain of our products for use on our SmartCycler and GeneXpert
systems, when used for clinical purposes, may require PMA, and all such tests will most likely, at
a minimum, require 510(k) clearance. We are planning clinical trials for other proposed products.
Clinical trials are expensive and time-consuming. In addition, the commencement or completion of
any clinical trials may be delayed or halted for any number of reasons, including product
performance, changes in intended use, changes in medical practice and issues with evaluator
Institutional Review Boards.
Failure to comply with the applicable requirements can result in, among other things, warning
letters, administrative or judicially imposed sanctions such as injunctions, civil penalties,
recall or seizure of products, total or partial suspension of production, refusal to grant
premarket clearance or PMA for devices, withdrawal of marketing clearances or approvals, or
criminal prosecution. With regard to future products for which we seek 510(k) clearance or PMA from
the FDA, any failure or material delay to obtain such clearance or approval could harm our
business. If the FDA were to disagree with our regulatory assessment and conclude that approval or
clearance is necessary to market the products, we could be forced to cease marketing the products
and seek approval or clearance. With regard to those future products for which we will seek 510(k)
clearance or PMA from the FDA, any failure or material delay to obtain such clearance or approval
could harm our business. In addition, it is possible that the current regulatory framework could
change or additional regulations could arise at any stage during our product development or
marketing, which may adversely affect our ability to obtain or maintain approval of our products
and could harm our business.
Our manufacturing facilities located in Sunnyvale, California, Bothell, Washington and Bromma,
Sweden, where we assemble and produce the SmartCycler and GeneXpert systems, cartridges and other
molecular diagnostic kits and reagents, are subject to periodic regulatory inspections by the FDA
and other federal and state regulatory agencies. For example, these facilities are subject to
Quality System Regulations ("QSR") of the FDA and are subject to annual inspection and licensing by
the State of California and European regulatory agencies. If we fail to maintain these facilities
in accordance with the QSR requirements, international quality standards or other regulatory
requirements, our manufacturing process could be suspended or terminated, which would prevent us
from being able to provide products to our customers in a timely fashion and therefore harm our
business.
The U.S. Food and Drug Administration has issued a final interpretation of the regulations
governing the sale of Analyte Specific Reagent products which could prevent or delay our sales of
these products and harm our business.
In September 2006, the FDA published "Draft Guidance for Industry and FDA Staff: Commercially
Distributed Analyte Specific Reagents ("ASRs"): Frequently Asked Questions" clarifying the FDA's
interpretation of the
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regulations governing the sale of ASR products. On September 14, 2007, the
FDA published its final guidance that becomes effectively enforced on September 15, 2008. ASRs are
a class of products that do not require regulatory clearance or approval but do require compliance
with the FDA's Good Manufacturing Practice Regulations. The final guidance contains changes in
interpretation of the ASR regulations with regard to which products may be characterized as ASRs
that represent a departure from what we believe had been the previous FDA practice and policy, in
particular, the final guidance excludes reagent mixtures used to detect multiple targets from the
definition of ASRs. The changes in the final ASR guidance may require modifications of some of our
ASR products for us to continue selling them, or may require us to seek FDA clearance in order to
sell them. In addition, the final guidance may curtail our interest in developing any new products
that would qualify as ASRs.
We rely on licenses of key technology from third parties and may require additional licenses for
many of our new product candidates.
We rely on third-party licenses to be able to sell many of our products, and we could lose
these third-party licenses for a number of reasons, including, for example, early terminations of
such agreements due to breaches or alleged breaches by either party to the agreement. If we are
unable to enter into a new agreement for licensed technologies, either on terms that are acceptable
to us or at all, we may be unable to sell some of our products or access some geographic or
industry markets. We also need to introduce new products and product features in order to market
our products to a broader customer base and grow our revenues, and many new products and product
features could require us to obtain additional licenses and pay additional license fees and
royalties. Furthermore, for some markets, we intend to manufacture reagents and tests for use on
our instruments. We believe that manufacturing reagents and developing tests for our instruments is
important to our business and growth prospects but may require additional licenses, which may not
be available on commercially reasonable terms or at all. Our ability to develop, manufacture and
sell products, and our strategic plans and growth, could be impaired if we are unable to obtain
these licenses or if these licenses are terminated or expire and cannot be renewed. We may not be
able to obtain or renew licenses for a given product or product feature or for some reagents on
commercially reasonable terms, if at all. Furthermore, some of our competitors have rights to
technologies and reagents that we do not have which may put us at a competitive disadvantage in
certain circumstances and could adversely affect our performance.
We enter into collaborations with third parties that may not result in the development of
commercially viable products or the generation of significant future revenues.
In the ordinary course of our business, we enter into collaborative arrangements to develop
new products or to pursue new markets. These collaborations may not result in the development of
products that achieve commercial success, and these collaborations could be terminated prior to
developing any products. Accordingly, we cannot assure you that any of our collaborations will
result in the successful development of a commercially viable product or result in significant
additional future revenues in the future.
Our participation in the USPS BDS program may not result in predictable contracts or revenues in
the future.
Our participation in the USPS BDS program involves significant uncertainties related to
governmental decision-making and timing of deployment, and is highly sensitive to changes in
national and international priorities and budgets. Budgetary pressures may result in reduced
allocations to government agencies such as the USPS, sometimes without advanced notice. We cannot
be certain that actual funding and operating parameters, or product purchases, will occur at
currently expected levels or in the currently expected timeframe.
We may face risks associated with acquisitions of companies, products and technologies, and our
business could be harmed if we are unable to address these risks.
If we are presented with appropriate opportunities, we intend to acquire or make other
investments in complementary companies, products or technologies. We may not realize the
anticipated benefit of any acquisition or investment. We will likely face risks, uncertainties and
disruptions associated with the integration process,
including difficulties in the integration of the operations and services of an acquired
company, integration of acquired technology with our products, diversion of our management's
attention from other business concerns, the potential loss of key employees or customers of the
acquired businesses and impairment charges if future
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acquisitions are not as successful as we
originally anticipate. If we fail to successfully integrate other companies, products or
technologies that we acquire, our business could be harmed. Furthermore, we may have to incur debt
or issue equity securities to pay for any additional future acquisitions or investments, the
issuance of which could be dilutive to our existing shareholders. In addition, our operating
results may suffer because of acquisition-related costs or amortization expenses or charges
relating to acquired intangible assets.
We expect that our operating results will fluctuate significantly, and any failure to meet
financial expectations may result in a decline in our stock price.
We expect that our quarterly operating results will fluctuate in the future as a result of
many factors, such as those described elsewhere in this section, many of which are beyond our
control. Because our revenue and operating results are difficult to predict, we believe that
period-to-period comparisons of our results of operations are not a good indicator of our future
performance. Our operating results may be affected by the inability of some of our customers to
consummate anticipated purchases of our products, whether due to changes in internal priorities or,
in the case of governmental customers, problems with the appropriations process and variability and
timing of orders, or manufacturing inefficiencies. If revenue declines in a quarter, whether due to
a delay in recognizing expected revenue, unexpected costs or otherwise, our results of operations
will be harmed because many of our expenses are relatively fixed. In particular, research and
development and selling, general and administrative expenses are not significantly affected by
variations in revenue. If our quarterly operating results fail to meet or exceed the expectations
of securities analysts or investors, our stock price could drop suddenly and significantly.
If we are unable to manufacture our products in sufficient quantities and in a timely manner, our
operating results will be harmed and our ability to generate revenue could be diminished.
Our revenues and other operating results will depend in large part on our ability to
manufacture and assemble our products in sufficient quantities and in a timely manner. Any
interruptions we experience in the manufacturing or shipping of our products could delay our
ability to recognize revenues in a particular quarter. We have limited experience in manufacturing
large volumes of products, and manufacturing problems can and do arise or we may be unable to
adequately scale-up manufacturing in a timely manner or on a commercially reasonable basis if we
experience increased demand. In the past, we have experienced problems and delays in production
that have impacted our product yield and caused delays in our ability to ship finished products,
and we may experience such delays in the future. We may not be able to react quickly enough to ship
products and recognize anticipated revenues for a given period if we experience significant delays
in the manufacturing process. If we are unable to manufacture our products consistently and on a
timely basis, our revenues from product sales, gross margins and our other operating results will
be materially and adversely affected.
If certain single source suppliers fail to deliver key product components in a timely manner, our
manufacturing ability would be impaired and our product sales could suffer.
We depend on certain single source suppliers that supply some of the components used in the
manufacture of our instruments and our disposable reaction tubes and cartridges. If we need
alternative sources for key component parts for any reason, these component parts may not be
immediately available to us. If alternative suppliers are not immediately available, we will have
to identify and qualify alternative suppliers, and production of these components may be delayed.
We may not be able to find an adequate alternative supplier in a reasonable time period or on
commercially acceptable terms, if at all. Shipments of affected products have been limited or
delayed as a result of such problems in the past, and similar problems could occur in the future.
Our inability to obtain our key source supplies for the manufacture of our products may require us
to delay shipments of products, harm customer relationships or force us to curtail or cease
operations.
If certain of our products fail to obtain an adequate level of reimbursement from third-party
payers, our ability to sell products in the Clinical Molecular Diagnostic market would be harmed.
Our ability to sell our products in the Clinical Molecular Diagnostic market will depend in
part on the extent to which reimbursement for tests using our products will be available from:
•
government health administration authorities;
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•
private health coverage insurers;
•
managed care organizations; and
•
other organizations.
There are efforts by governmental and third-party payers to contain or reduce the costs of
health care through various means. Additionally, third-party payers are increasingly challenging
the price of medical products and services. If purchasers or users of our products are not able to
obtain adequate reimbursement for the cost of using our products, they may forego or reduce their
use. Significant uncertainty exists as to the reimbursement status of newly approved health care
products and whether adequate third-party coverage will be available.
If our competitors and potential competitors develop superior products and technologies, our
competitive position and results of operations would suffer.
We face intense competition from a number of companies that offer products in our target
markets. These competitors include:
•
healthcare companies that manufacture laboratory-based tests and analyzers;
•
companies developing and marketing sequence detection systems for industrial research
products;
•
diagnostic and pharmaceutical companies;
•
companies developing drug discovery technologies; and
•
companies developing or offering biothreat detection technologies.
Several companies provide instruments and reagents for DNA amplification or detection. ABI and
Roche sell systems integrating DNA amplification and detection (sequence detection systems) to the
commercial market. Roche, Abbott Laboratories, Becton, Dickinson and Company, Qiagen, Celera and
GenProbe sell sequence detection systems, some with separate robotic batch DNA purification systems
and sell reagents to the Clinical Molecular Diagnostic market. Other companies, including Siemens,
Third Wave Technologies and bioMerieux, offer molecular tests.
If our products do not perform as expected or the reliability of the technology on which our
products are based is questioned, we could experience lost revenue, delayed or reduced market
acceptance of our products, increased costs and damage to our reputation.
Our success depends on the market's confidence that we can provide reliable, high-quality
molecular test systems. We believe that customers in our target markets are likely to be
particularly sensitive to product defects and errors. Our reputation and the public image of our
products or technologies may be impaired if our products fail to perform as expected or our
products are perceived as difficult to use. Despite testing, defects or errors could occur in our
products or technologies. Furthermore, with respect to the BDS program, our products are
incorporated into larger systems that are built and delivered by others; we cannot control many
aspects of the final system.
In the future, if our products experience a material defect or error, this could result in
loss or delay of revenues, delayed market acceptance, damaged reputation, diversion of development
resources, legal claims, increased insurance costs or increased service and warranty costs, any of
which could harm our business. Any failure in the overall BDS, even if it is unrelated to our
products, could harm our business. Even after any underlying concerns or problems are resolved, any
widespread concerns regarding our technology or any manufacturing defects or performance errors in
our products could result in lost revenue, delayed market acceptance, damaged reputation, increased
service and warranty costs, and claims against us.
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If
product liability lawsuits are successfully brought against us, we
may face reduced demand for our product and incur significant
liabilities.
We face an inherent risk of exposure to product liability claims if our technologies or
systems are alleged to have caused harm or do not perform in accordance with specifications, in
part because our products are used for sensitive applications. We cannot be certain that we would
be able to successfully defend any product liability lawsuit brought against us. Regardless of
merit or eventual outcome, product liability claims may result in:
•
decreased demand for our products;
•
injury to our reputation;
•
costs of related litigation; and
•
substantial monetary awards to plaintiffs.
If we become the subject of a successful product liability lawsuit, we could incur substantial
liabilities, which could harm our business.
We rely on relationships with collaborative partners and other third parties for development,
supply and marketing of certain products and potential products, and such collaborative partners
or other third parties could fail to perform sufficiently.
We believe that our success in penetrating our target markets depends in part on our ability
to develop and maintain collaborative relationships with other companies. Relying on collaborative
relationships is risky to our future success for these products because, among other things:
•
our collaborative partners may not devote sufficient resources to the success of our
collaboration;
•
our collaborative partners may not obtain regulatory approvals necessary to continue
the collaborations in a timely manner;
•
our collaborative partners may be acquired by another company and decide to terminate
our collaborative partnership or become insolvent;
•
our collaborative partners may develop technologies or components competitive with our
products;
•
components developed by collaborators could fail to meet specifications, possibly
causing us to lose potential projects and subjecting us to liability;
•
disagreements with collaborators could result in the termination of the relationship or
litigation;
•
collaborators may not have sufficient capital resources;
•
collaborators may pursue tests or other products that will not generate significant
volume for us, but may consume significant research and development and manufacturing
resources; and
•
we may not be able to negotiate future collaborative arrangements, or renewals of
existing collaborative agreements, on acceptable terms.
Because these and other factors may be beyond our control, the development or
commercialization of these products may be delayed or otherwise adversely affected.
If we or any of our collaborative partners terminate a collaborative arrangement, we may be
required to devote additional resources to product development and commercialization or we may need
to cancel some development programs, which could adversely affect our product pipeline and
business.
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If our direct selling efforts for our products fail, our business expansion plans could suffer,
and our ability to generate revenue will be diminished.
We have a relatively small sales force compared to our competitors. If our direct sales force
is not successful, or new additions to our sales team fail to gain traction among our customers, we
may not be able to increase market awareness and sales of our products. If we fail to establish our
systems in the marketplace, it could have a negative effect on our ability to sell subsequent
systems and hinder the planned expansion of our business.
If our distributor relationships are not successful, our ability to market and sell our products
would be harmed and our financial performance will be adversely affected.
We depend on relationships with distributors for the marketing and sales of our products in
the Industrial and Clinical Molecular Diagnostic markets in various geographic regions, and we have
a limited ability to influence their efforts. We expect to continue to rely substantially on our
distributor relationships for sales into other markets or geographic regions, which is key to our
long-term growth potential. Relying on distributors for our sales and marketing could harm our
business for various reasons, including:
•
agreements with distributors may terminate prematurely due to disagreements or may
result in litigation between the partners;
•
we may not be able to renew existing distributor agreements on acceptable terms;
•
our distributors may not devote sufficient resources to the sale of products;
•
our distributors may be unsuccessful in marketing our products;
•
our existing relationships with distributors may preclude us from entering into
additional future arrangements with other distributors; and
•
we may not be able to negotiate future distributor agreements on acceptable terms.
We may be subject to third-party claims that require additional licenses for our products and we
could face costly litigation, which could cause us to pay substantial damages and limit our
ability to sell some or all of our products.
Our industry is characterized by a large number of patents, claims of which appear to overlap
in many cases. As a result, there is a significant amount of uncertainty regarding the extent of
patent protection and infringement. Companies may have pending patent applications, which are
typically confidential for the first eighteen months following filing, that cover technologies we
incorporate in our products. Accordingly, we may be subjected to substantial damages for past
infringement or be required to modify our products or stop selling them if it is ultimately
determined that our products infringe a third party's proprietary rights. Moreover, from time to
time, we receive correspondence and other communications from companies that ask us to evaluate the
need for a license of patents they hold, and indicating or suggesting that we need a license to
their patents in order to offer our products and services or to conduct our business operations.
Even if we are successful in defending against claims, we could incur substantial costs in doing
so. Any litigation related to claims of patent infringement could consume our resources and lead to
significant damages, royalty payments or an injunction on the sale of certain products. Any
additional licenses to patented technology could obligate us to pay substantial additional
royalties, which could adversely impact our product costs and harm our business.
If we fail to maintain and protect our intellectual property rights, our competitors could use our
technology to develop competing products and our business will suffer.
Our competitive success will be affected in part by our continued ability to obtain and
maintain patent protection for our inventions, technologies and discoveries, including our
intellectual property that includes technologies that we license. Our ability to do so will depend
on, among other things, complex legal and factual questions. We have patents related to some of our
technology and have licensed some of our technology under patents of others. We cannot assure you
that our patents and licenses will successfully preclude others from using our technology. Our
pending patent applications may lack priority over applications submitted by third parties or
may not result in the issuance of patents. Even if issued, our patents may not be sufficiently
broad to provide protection against competitors with similar technologies and may be challenged,
invalidated or circumvented.
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In addition to patents, we rely on a combination of trade secrets, copyright and trademark
laws, nondisclosure agreements, licenses and other contractual provisions and technical measures to
maintain and develop our competitive position with respect to intellectual property. Nevertheless,
these measures may not be adequate to safeguard the technology underlying our products. For
example, employees, consultants and others who participate in the development of our products may
breach their agreements with us regarding our intellectual property, and we may not have adequate
remedies for the breach. We also may not be able to effectively protect our intellectual property
rights in some foreign countries, as many countries do not offer the same level of legal protection
for intellectual property as the United States. Furthermore, for a variety of reasons, we may
decide not to file for patent, copyright or trademark protection outside of the United States. Our
trade secrets could become known through other unforeseen means. Notwithstanding our efforts to
protect our intellectual property, our competitors may independently develop similar or alternative
technologies or products that are equal or superior to our technology. Our competitors may also
develop similar products without infringing on any of our intellectual property rights or design
around our proprietary technologies. Furthermore, any efforts to enforce our proprietary rights
could result in disputes and legal proceedings that could be costly and divert attention from our
business.
We may need to initiate lawsuits to protect or enforce our patents, which would be expensive and,
if we lose, may cause us to lose some, if not all, of our intellectual property rights, and
thereby impair our ability to compete.
We rely on patents to protect a large part of our intellectual property. To protect or enforce
our patent rights, we may initiate patent litigation against third parties, such as infringement
suits or interference proceedings. These lawsuits could be expensive, take significant time and
divert management's attention from other business concerns. They would also put our patents at risk
of being invalidated or interpreted narrowly, and our patent applications at risk of not issuing.
We may also provoke these third parties to assert claims against us. Patent law relating to the
scope of claims in the technology fields in which we operate is still evolving and, consequently,
patent positions in our industry are generally uncertain. We cannot assure you that we would
prevail in any of these suits or that the damages or other remedies awarded, if any, would be
commercially valuable. During the course of these suits, there may be public announcements of the
results of hearings, motions and other interim proceedings or developments in the litigation. Any
public announcements related to these suits could cause our stock price to decline.
Our sales cycle can be lengthy, which can cause variability and unpredictability in our operating
results.
The sales cycles for our systems products can be lengthy, which makes it more difficult for us
to accurately forecast revenues in a given period, and may cause revenues and operating results to
vary significantly from period to period. Sales of our products to the Industrial market often
involve purchasing decisions by large public and private institutions, and any purchases can
require many levels of pre-approval. In addition, many of these sales depend on these institutions
receiving research grants from various federal agencies, which grants vary considerably from year
to year in both amount and timing due to the political process. As a result, we may expend
considerable resources on unsuccessful sales efforts or we may not be able to complete transactions
on the schedule anticipated.
Our international operations subject us to additional risks and costs.
Our international operations have expanded recently. These operations are subject to a number
of difficulties and special costs, including:
•
compliance with multiple, conflicting and changing governmental laws and regulations;
•
laws and business practices favoring local competitors;
•
potential for exchange and currency risks;
•
potential difficulty in collecting accounts receivable;
•
import and export restrictions and tariffs;
•
difficulties staffing and managing foreign operations;
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•
difficulties and expense in enforcing intellectual property rights;
•
business risks, including fluctuations in demand for our products and the cost and
effort to conduct international operations and travel abroad to promote international
distribution, and global economic conditions;
•
multiple conflicting tax laws and regulations; and
•
political and economic instability.
We intend to expand our international sales and marketing activities, including through our
subsidiary in France, and enter into relationships with additional international distribution
partners. We may not be able to attract international distribution partners that will be able to
market our products effectively.
Our international operations could also increase our exposure to international laws and
regulations. If we cannot comply with foreign laws and regulations, which are often complex and
subject to variation and unexpected changes, we could incur unexpected costs and potential
litigation. For example, the governments of foreign countries might attempt to regulate our
products and services or levy sales or other taxes relating to our activities. In addition, foreign
countries may impose tariffs, duties, price controls or other restrictions on foreign currencies or
trade barriers, any of which could make it more difficult for us to conduct our business.
The nature of some of our products may also subject us to export control regulation by the US
Department of State and the Department of Commerce. Violations of these regulations can result in
monetary penalties and denial of export privileges.
Our SmartCycler and GeneXpert products are marketed in Europe under the CE IVD mark, and we
intend to introduce additional products under the CE IVD mark as we pursue our expansion plans. Our
use of the CE IVD mark is based on self declarations of conformity with stated directives and
standards of the European Parliament and Council and is subject to review by competent authorities
in Europe. Our recently acquired subsidiary, Cepheid AB, successfully introduced CE IVD-marked
products that require independent third party review recognized by competent authorities, for
example, a CMV test for use on our SmartCycler instrument. Any finding of non-conformity under such
a review could prevent or otherwise adversely affect our ability to market products in Europe and
result in other consequences, including both criminal sanctions, such as the imposition of fines or
penalties, and civil claims for damages from persons suffering damage as a result of the
non-conformity.
If we fail to retain key members of our staff, our ability to conduct and expand our business
would be impaired.
We are highly dependent on the principal members of our management and scientific staff. The
loss of services of any of these persons could seriously harm our product development and
commercialization efforts. In addition, we require skilled personnel in areas such as microbiology,
clinical and sales, marketing and finance. Attracting, retaining and training personnel with the
requisite skills remains challenging, and, as general economic conditions improve, is becoming
increasingly competitive, particularly in the Silicon Valley area of California where our main
office is located. If at any point we are unable to hire, train and retain a sufficient number of
qualified employees to match our growth, our ability to conduct and expand our business could be
seriously reduced.
If we become subject to claims relating to improper handling, storage or disposal of hazardous
materials, we could incur significant cost and time to comply.
Our research and development processes involve the controlled storage, use and disposal of
hazardous materials, including biological hazardous materials. We are subject to foreign, federal,
state and local regulations governing the use, manufacture, storage, handling and disposal of
materials and waste products. We may incur significant costs complying with both existing and
future environmental laws and regulations. In particular, we are subject to regulation by the
Occupational Safety and Health Administration ("OSHA") and the Environmental Protection
Agency ("EPA"), and to regulation under the Toxic Substances Control Act and the Resource
Conservation and Recovery Act in the United States. OSHA or the EPA may adopt regulations that may
affect our
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research and development programs. We are unable to predict whether any agency will
adopt any regulations that would have a material adverse effect on our operations.
The risk of accidental contamination or injury from hazardous materials cannot be eliminated
completely. In the event of an accident, we could be held liable for any damages that result, and
any liability could exceed the limits or fall outside the coverage of our workman's compensation
insurance. We may not be able to maintain insurance on acceptable terms, if at all.
If a catastrophe strikes our manufacturing facilities, we may be unable to manufacture our
products for a substantial amount of time and we would experience lost revenue.
Our manufacturing facilities are located in Sunnyvale, California, Bromma, Sweden, and
Bothell, Washington. Although we have business interruption insurance, our facilities and some
pieces of manufacturing equipment are difficult to replace and could require substantial
replacement lead-time. Various types of disasters, including earthquakes, fires, floods and acts of
terrorism, may affect our manufacturing facilities. Earthquakes are of particular significance
since our primary manufacturing facilities in California are located in an earthquake-prone area.
In the event our existing manufacturing facilities or equipment is affected by man-made or natural
disasters, we may be unable to manufacture products for sale or meet customer demands or sales
projections. If our manufacturing operations were curtailed or ceased, it would seriously harm our
business.
We might require additional capital to support business growth, and such capital might not be
available.
We may need to engage in additional equity or debt financing to support business growth and
respond to business challenges, which include the need to develop new products or enhance existing
products, conduct clinical trials, enhance our operating infrastructure and acquire complementary
businesses and technologies. Equity and debt financing, however, might not be available when needed
or, if available, might not be available on terms satisfactory to us. In addition, to the extent
that additional capital is raised through the sale of equity or convertible debt securities, the
issuance of these securities could result in dilution to our shareholders. In addition, these
securities may be sold at a discount from the market price of our common stock and may include
rights, preferences or privileges senior to those of our common stock. If we are unable to obtain
adequate financing or financing on terms satisfactory to us, our ability to continue to support our
business growth and to respond to business challenges could be significantly limited.
Compliance with regulations governing public company corporate governance and reporting is complex
and expensive.
Many laws and regulations, notably those adopted in connection with the Sarbanes-Oxley Act of
2002 by the SEC and the NASDAQ Global Market, impose obligations on public companies, such as ours,
which have increased the scope, complexity, and cost of corporate governance, reporting, and
disclosure practices. Our implementation of these reforms and enhanced new disclosures has required
and will continue to require substantial management time and oversight and requires us to incur
significant additional accounting and legal costs.
Our business could be harmed by adverse economic conditions in our target markets or reduced
spending in our industry.
Our business depends on the overall demand in our industry. The markets we serve are emerging
and the purchase of our products can be discretionary. Weak economic conditions in our target
markets, or a reduction in spending in our industry even if economic conditions improve, would
likely adversely impact our business, operating results and financial condition in a number of
ways, including lower prices for our products and reduced unit sales.
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USE OF PROCEEDS
If shares are resold by the Selling Stockholders, we will not receive any proceeds from such
sale. The shares will be offered for the respective accounts of the Selling Stockholders. See the
sections titled "Selling Stockholders" and "Plan of Distribution" below.
SELLING STOCKHOLDERS
The shares that may be offered from time to time by the Selling Stockholders named below
pursuant to this prospectus have been acquired by the Selling Stockholders upon exercise of
purchase rights granted under the 2000 Employee Stock Purchase Plan (the "
ESPP
") and constitute
"restricted securities" or "control securities" within the meaning of the Form S-8.
The following table sets forth the name of each Selling Stockholder who holds 1,000 or more
shares of our Common Stock, the amount of common stock owned by him or her as of March 17, 2008,
the amount of common stock that he or she may offer and the amount of common stock that will be
owned by him or her subsequent to this offering. Since each Selling Stockholder may sell all or
some portion of the shares of his or her common stock, only an estimate (assuming that he sells all
of the shares offered hereby) can be given as to the number of shares of common stock that will be
owned by him or her subsequent to this offering. To our knowledge, none of the Selling
Stockholders is a broker-dealer or an affiliate of a broker-dealer. Certain unnamed
non-affiliates, each of whom may sell up to 1,000 shares, may also use this prospectus for reoffers
and resales.
Number of Shares
Owned Prior to
Number of Shares
Number of Shares Owned
Name of Shareholder
Offering
Registered
After Offering
Adornato, Brant T.
7,623
1,584
6,039
Avila, Manuel
1,069
780
289
Bell, Michael
2,817
574
2,243
Bhullar, Manjit
6,761
356
6,405
Biehn, Richard R
7,470
1,099
6,371
Bojorquez, Anthony D
2,396
602
1,794
Botal, Paul M
1,351
512
839
Bottari, Patricia
1,867
968
899
Bowen, Nicki
10,286
150
10,136
Brabant, William H.
1,927
829
1,098
Braden, Karen
2,331
1,672
659
Chan, Sandy
1,577
829
748
Chang, Benny
1,074
1,074
0
Chang, Ron
29,192
2,068
27,124
Chu, Anh
1,893
645
1,248
Chu, Juliet L
31,261
1,993
29,268
Chui, Gloria
1,873
1,168
705
Crane, David
1,407
1,407
0
Dailey, Peter
4,631
2,161
2,470
de Grandpre, Justine
1,709
1,709
0
DeLaurentis, Mark
2,643
1,169
1,474
Dias Lourenco, Francisco
3,080
1,595
1,485
Dority, Douglas
13,279
1,704
11,575
14
Table of Contents
Number of Shares
Owned Prior to
Number of Shares
Number of Shares Owned
Name of Shareholder
Offering
Registered
After Offering
Finley, Sandra
1,465
800
665
Fitch, Jay
2,519
1,102
1,417
Floyd, Mark B.
1,323
1,323
0
Francis, Michael
1,985
1,985
0
Gannon, Tanya
2,477
756
1,721
Glass, Jennifer
1,565
1,482
83
Griffin , Steven
1,476
382
1,094
Guinivere, David T
1,442
1,112
330
Hambleton, Larry D.
1,289
833
456
Hartter, Michael
3,444
246
3,198
Hoang, Loan
12,289
747
11,542
Huynh, Michelle D.
8,678
805
7,873
Inserra, Trish
10,307
1,595
8,712
Iqbal, Shazi S
2,816
1,778
1,038
Jones, Harold Martin
2,480
525
1,955
Kanazawa, Eric Y
1,246
1,083
163
Kibiti, Elvis
1,142
740
402
Ko, Mary
4,297
383
3,914
Kutner, Brian
2,765
1,029
1,736
La, Trinh Q
6,893
681
6,212
LaFave, Jeffrey J
1,621
792
829
Lau, Sam
1,929
673
1,256
Le Coupanec, Patricia
2,612
1,090
1,522
Le, Khanh
2,065
628
1,437
Le, Trang
2,958
969
1,989
Leonard, Sally
4,227
1,596
2,631
Litavis, Joseph
1,146
1,020
126
Lucero, Joseph
1,793
1,577
216
Lucey, Michael J
1,428
1,428
0
Lund, Kevin
2,002
1,041
961
MacDonald, Brian
3,214
607
2,607
Mizoguchi, Tadashi J
1,367
947
420
Moyer, Krista
1,427
830
597
Myhre, Michael
4,231
2,278
1,953
Nagula, Gangadhar
1,684
1,008
676
Nguyen, Lan
1,331
657
674
Nguyen, Phuong
2,726
638
2,088
Nguyen, Trang
7,136
727
6,409
Nguyen, Trung
12,738
703
12,035
Nicewonger, John
1,988
795
1,193
Otaki, Kaoru
1,882
876
1,006
Patel, Seema
3,609
868
2,741
Paul, Kendra L
1,984
569
1,415
Popiel, Mark
1,584
258
1,326
Primeau, Michael J
30,145
1,735
28,410
15
Table of Contents
Number of Shares
Owned Prior to
Number of Shares
Number of Shares Owned
Name of Shareholder
Offering
Registered
After Offering
Reyes, Robertta
1,205
275
930
Rodgers, Rick
1,054
1,054
0
Romero, David
1,516
381
1,135
Ruhfel, Robert
7,100
1,320
5,780
Saifi, Kianoush
1,157
1,157
0
Satya, Malini
2,716
825
1,891
Shah, Nila
2,207
1,222
985
Shukla, Pragya
1,249
689
560
Stevenson, Sandi
1,398
324
1,074
Sun, Haidong
1,133
1,133
0
Tang, Kiet C.
15,022
832
14,190
Tang, Kristine
10,832
1,162
9,670
Tholath, Julie
10,539
959
9,580
Thompkins, Linda M
3,105
1,512
1,593
Tipton, Jared
1,562
1,562
0
Truong, Thao
2,996
671
2,325
Tso, Jacqueline
6,700
1,938
4,762
Van Atta, Reuel
4,119
1,543
2,576
Wallace, Stacey E
1,404
839
565
Wang, Jian
1,317
1,317
0
Weir, Fred
2,312
186
2,126
Whitmore, Joseph
1,579
1,579
0
Wong, Edith
18,011
1,661
16,350
Wong, Wendy W.
7,174
731
6,443
Woods, Robert
17,070
1,106
15,964
Wu, Yuh-Huey
16,826
1,374
15,452
Xia, Andrew
3,217
858
2,359
Xiao, Vivian
1,804
1,160
644
Yu, Wei
6,266
1,226
5,040
Yuan, Lin
12,330
851
11,479
PLAN OF DISTRIBUTION
The purpose of this prospectus is to allow the Selling Stockholders to offer for sale and sell
all or a portion of their shares acquired pursuant to the exercise of stock purchase rights granted
under the ESPP. The Selling Stockholders and their successors, including their transferees,
pledgees or donees or their successors, may sell the shares of common stock offered under this
prospectus directly to purchasers or through broker-dealers or agents, who may receive compensation
in the form of discounts, concessions or commissions from the selling stockholder or the
purchasers. These discounts, concessions or commissions as to any particular broker-dealer or
agent may be in excess of those customary in the types of transactions involved. Neither we nor
the Selling Stockholders can presently estimate the amount of this compensation.
The common stock offered under this prospectus may be sold in one or more transactions at
fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing
market prices, at varying prices determined at the time of sale, or at negotiated prices. These
sales may be effected in transactions, which may involve crosses or block transactions:
16
Table of Contents
•
on any national securities exchange or U.S. inter-dealer system of a registered
national securities association on which the common stock may be listed or quoted at the
time of sale;
•
in the over-the-counter market; or
•
in transactions otherwise than on these exchanges or systems or in the over-the-counter
market.
The aggregate proceeds to the Selling Stockholder from the sale of the common stock offered by
them will be the purchase price of the common stock less discounts and commissions, if any. We
will not receive any of the proceeds from this offering.
Our outstanding common stock is listed for trading on the NASDAQ Global Market.
The Selling Stockholders and any broker-dealers or agents that participate in the sale of the
common stock may be "underwriters" within the meaning of Section 2(11) of the Securities Act. Any
discounts, commissions, concessions or profit they earn on any resale of the shares may be
underwriting discounts and commissions under the Securities Act. If the Selling Stockholder is an
"underwriter" within the meaning of Section 2(11) of the Securities Act, the Selling Stockholder
will be subject to the prospectus delivery requirements of the Securities Act.
In addition, any securities covered by this prospectus which qualify for sale pursuant to Rule
144 of the Securities Act may be sold under Rule 144 of the Securities Act rather than pursuant to
this prospectus. A Selling Stockholder may not sell any common stock described in this prospectus
and may not transfer, devise or gift these securities by other means not described in this
prospectus.
To the extent required, the specific common stock to be sold, the names of the Selling
Stockholder, the respective purchase prices and public offering prices, the names of any agent,
dealer or underwriter, and any applicable commissions or discounts with respect to a particular
offer will be set forth in an accompanying prospectus supplement or, if appropriate, a
post-effective amendment to the registration statement of which this prospectus is a part. This
prospectus also may be used, with our consent, by donees or pledgees of the Selling Stockholder, or
by other persons acquiring shares and who wish to offer and sell shares under circumstances
requiring or making desirable its use.
In order to comply with the securities laws of some states, if applicable, the common stock
may be sold in these jurisdictions only through registered or licensed brokers or dealers.
LEGAL MATTERS
The validity of the shares of common stock offered hereby will be passed upon for us by
Fenwick & West LLP, Mountain View, California.
EXPERTS
Ernst & Young LLP, independent registered public accounting firm, has audited our consolidated
financial statements and schedule included in our Annual Report on Form 10-K for the year ended
December 31, 2007, and the effectiveness of our internal control over financial reporting as of
December 31, 2007, as set forth in their reports, which are incorporated by reference in this
prospectus and elsewhere in the registration statement. Our financial statements and schedule are
incorporated by reference in reliance on Ernst & Young LLP's reports, given on their authority as
experts in accounting and auditing.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We are subject to the informational reporting requirements of Exchange Act, and are required
to file reports, proxy statements and other information with the SEC. All such filings are
available at the SEC Public
17
Table of Contents
Reference Room at 100 F Street, N.E., Washington, DC 20549. Please
call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. Our filings
are also available free of charge at the website of the SEC at www.sec.gov or our website at
www.cepheid.com. A copy of any document incorporated by reference in the registration statement of
which this prospectus forms a part but which is not delivered with this prospectus will be provided
by us without charge to any person to whom this prospectus has been delivered upon oral or written
request to that person. Requests for documents should be directed to Cepheid, Attention: General
Counsel, 904 Caribbean Drive, Sunnyvale, CA, telephone number (408) 541-4191.
Where we summarize in this prospectus the material terms of any contract, agreement or other
document filed as an exhibit to the registration statement, the summary information provided in the
prospectus is less complete than the actual contract, agreement or document. You should refer to
the exhibits to the registration statement of which this prospectus forms a part for copies of the
actual contract, agreement or document.
INCORPORATION OF DOCUMENTS BY REFERENCE
The following documents filed by us with the SEC pursuant to the Securities Act and the
Exchange Act, are incorporated herein by reference into this prospectus:
(a)
Each of Cepheid's earlier registration statements on Form S-8 (registration
numbers 333-131372, 333-122379, 333-117744, 333-106181, 333-91472, 333-65844, and
333-41682) filed with the Securities and Exchange Commission on January 30, 2006,
January 28, 2005, July 29, 2004, June 17, 2003, July 28, 2002, July 25, 2001 and July
18, 2000, respectively;
(b)
The Registrant's Annual Report on Form 10-K for the fiscal year ended December
31, 2007 filed with the Commission on February 29, 2008, pursuant to Section 13 of the
Exchange Act;
(c)
The Registrant's Proxy Statement on Schedule 14A filed with the Commission on
March 25, 2008; and
(d)
The description of the Registrant's common stock as set forth in the
Registration Statement on Form 8-A filed with the Commission on June 6, 2000, File
No. 000-30755, including any amendments or reports filed with the Commission for the
purpose of updating such description.
In addition, all documents which we file pursuant to Sections 13(a), 13(c), 14 and 15(d) of
the Exchange Act after the date of this prospectus and prior to the termination of this offering,
shall be deemed to be incorporated by reference herein and to be a part of this prospectus from the
date of the filing of such documents. Any statement contained in a document incorporated or deemed
to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of
this prospectus to the extent that a statement contained in this prospectus, or in any other
subsequently filed document which also is or is deemed to be incorporated by reference in this
prospectus, modifies or supersedes such statement. Any such statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this prospectus.
18
Table of Contents
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3.  Incorporation of Documents by Reference.
The following documents filed by the Registrant with the Commission pursuant to the Securities
Act and the Securities Exchange Act of 1934, as amended (the "
Exchange Act
"), are incorporated
herein by reference:
(a)
Each of the Registrant's earlier registration statements on Form S-8
(registration numbers 333-131372, 333-122379, 333-117744, 333-106181, 333-91472,
333-65844, and 333-41682) filed with the Commission on January 30, 2006, January 28,
2005, July 29, 2004, June 17, 2003, July 28, 2002, July 25, 2001 and July 18, 2000,
respectively;
(b)
The Registrant's Annual Report on Form 10-K for the fiscal year ended December
31, 2007 filed with the Commission on February 29, 2008, pursuant to Section 13 of the
Exchange Act;
(c)
The Registrant's Proxy Statement on Schedule 14A filed with the Commission on
March 25, 2008; and
(d)
The description of the Registrant's common stock as set forth in the
Registration Statement on Form 8-A filed with the Commission on June 6, 2000, File
No. 000-30755, including any amendments or reports filed with the Commission for the
purpose of updating such description.
All documents subsequently filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and
15(d) of the Exchange Act, prior to the filing of a post-effective amendment which indicates that
all securities offered hereby have been sold or which deregisters all securities then remaining
unsold, shall be deemed to be incorporated by reference herein and to be a part hereof from the
date of the filing of such documents.
Item 4.  Description of Securities.
Not applicable.
Item 5. Interests of Named Experts and Counsel.
Attorneys at Fenwick & West LLP beneficially own approximately 2,222 shares of Cepheid's
Common Stock.
Item 6. Indemnification of Directors and Officers.
Sections 204 and 317 of the California General Corporation Law authorize a corporation to
indemnify its directors, officers, employees and other agents in terms sufficiently broad to permit
indemnification (including reimbursement for expenses) under certain circumstances for liabilities
arising under the Securities Act. Pursuant to Sections 204 and 317 of the California Corporations
Code, as amended, the Registrant has included in its Articles of Incorporation and Bylaws
provisions regarding the indemnification of officers and directors of the Registrant.
Article 6 of the Registrant's Restated Articles of Incorporation, as amended, provides as
follows:  "The Corporation shall, to the maximum extent and in a manner permitted by the Code,
indemnify each of its Directors against expenses (as defined in Section 317(a) of the Code),
judgments, fines, settlements and other amounts actually and reasonably incurred in connection with
any proceeding (as defined in Section 317(a) of the Code), arising by reason of the fact that such
person is or was a Director of the Corporation. For purposes of this Article 6, a "Director" of the
Corporation includes any person (i) who is or was a Director of the Corporation, (ii) who is or was
serving at the request of the Corporation as a director of another foreign or domestic corporation,
partnership, joint venture, trust or other enterprise, or (iii) who was a director of a corporation
which was a predecessor corporation of the Corporation or of another enterprise at the request of
such predecessor corporation."
II-1
Table of Contents
Article VII of the Registrant's Restated Bylaws, as amended, provides as follows: "To the
fullest extent permitted by law, this corporation shall indemnify its directors, officers,
employees and other persons described in Section 317(a) of the California Corporations Code,
including persons formerly occupying any such position, against all expenses, judgments, fines,
settlements and other amounts actually and reasonably incurred by them in connection with any
"proceeding", as that term is used in such Section and including an action by or in the right of
the corporation, by reason of the fact that such person is or was a person described by such
Section. "Expenses", as used in this Bylaw, shall have the same meaning as in Section 317(a) of the
California Corporations Code."
The Registrant has entered into indemnification agreements with its officers and directors,
indemnifying them against certain potential liabilities that may arise as a result of their service
to the Registrant, and providing for certain other protections. The Registrant also maintains an
insurance policy insuring its directors and officers against liability for certain acts and
omissions while acting in their official capacities.
Item 7. Exemption from Registration Claimed.
The sales of our securities to the Selling Stockholders were determined to be exempt from
registration under the Securities Act in reliance upon Section 4(2) of the Securities Act as
transactions by an issuer not involving any public offering. All of the Selling Stockholders had
adequate access, through the Registrant's publicly-filed reports, to information about the
Registrant.
Item 8. Exhibits.
Incorporated by Reference
Exhibit
Filing
Filed
Number
Description of Exhibit
Form
File No.
Exhibit
Date
Herewith
4.1
2000 Employee Stock Purchase
Plan, as amended
S-8
333-106181
4.1
6/17/2003
4.2
Amended and Restated Articles
of Incorporation
S-1
333-34340
3.1
4/7/2000
4.3
Amended and Restated Bylaws
10-Q
3.01
7/31/2002
4.4
Specimen Common Stock
Certificate
S-1
333-34340
4.2
5/18/2000
4.5
Specimen Common Stock
Certificate
10-Q
4.01
7/31/2002
4.6
Rights Agreement dated
September 26, 2002 between
Cepheid and Computershare
Trust Company as Rights
Agent, which includes as
Exhibit A the form of
Certificate of Determination
of Series A Junior
Participating Preferred
Stock, as Exhibit B the
Summary of Stock Purchase
Rights and as Exhibit C the
Form of Rights Certificate
8-A
3.02
10/4/2002
4.7
Certificate of Determination
specifying the terms of the
Series A Junior Participating
Preferred Stock of
registrant, as filed with the
Secretary of State of the
State of California on
October 2, 2002
8-A
3.02
10/4/2002
II-2
Table of Contents
Incorporated by Reference
Exhibit
Filing
Filed
Number
Description of Exhibit
Form
File No.
Exhibit
Date
Herewith
5.1
Opinion of Fenwick & West LLP
X
23.1
Consent of Independent
Registered Public Accounting
Firm
X
23.2
Consent of Fenwick & West LLP
(filed as part of
Exhibit 5.1)
X
24.1
Power of Attorney (see
signature page)
X
Item 9. Undertakings
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) or the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the effective date of
the registration statement (or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change in the information set forth in
the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated maximum offering range may
be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in volume and price represent no more than 20 percent change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective
Registration Statement;
(iii) to include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
provided, however
, that paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the
information required to be included in a post-effective amendment by those paragraphs is contained
in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or
Section 15(d) of the Exchange Act that are incorporated by reference in the Registration Statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial
bona fide
offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the Registrant's annual report pursuant
to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable,
each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934) that is incorporated by reference in the
II-3
Table of Contents
Registration Statement shall be
deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide
offering
thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may
be permitted to directors, officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred or paid by a
director, officer or controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person in connection with
the securities being registered, the Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
II-4
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Sunnyvale, State of California, on this 28th day of
March, 2008.
CEPHEID
By:
/s/
John L. Bishop
John L. Bishop
Chief Executive Officer
POWER OF ATTORNEY
Each person whose signature appears below constitutes and appoints John L. Bishop and Joseph
H. Smith his true and lawful attorneys in fact and agents, each acting alone, with full power of
substitution and resubstitution, for him and in his name, place and stead, in any and all
capacities, to sign any or all amendments (including post-effective amendments) to the registration
statement on Form S-8, and to file the same, with all exhibits thereto, and all documents in
connection therewith, with the Commission, granting unto said attorneys-in-fact and agents, full
power and authority to do and perform each and every act and thing requisite and necessary to be
done in and about the premises, as fully to all intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said attorneys-in-fact and agents, each acting
alone, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
II-5
Table of Contents
Pursuant
to the requirements of the Securities Act of 1933, this registration
statement has been signed below by the following persons in the
capacities and on the date indicated.
Signature
Title
Date
/s/
Thomas L. Gutshall
Chairman of the Board
March 28, 2008
Thomas L. Gutshall
/s/
John L. Bishop
Chief Executive Officer and Director
March 28, 2008
John L. Bishop
(
Principal Executive Officer
)
/s/
Michael T. Myhre
Vice President, Corporate Controller
March 28, 2008
Michael T. Myhre
(
Acting Principal Financial and Accounting Officer
)
/s/
Thomas D. Brown
Director
March 28, 2008
Thomas D. Brown
/s/
Robert J. Easton
Director
March 28, 2008
Robert J. Easton
/s/
Cristina H. Kepner
Director
March 28, 2008
Cristina H. Kepner
/s/
Dean O. Morton
Director
March 28, 2008
Dean O. Morton
/s/
Mitchell D. Mroz
Director
March 28, 2008
Mitchell D. Mroz
Director
David H. Persing, M.D., Ph.D.
/s/
Hollings C. Renton
Director
March 28, 2008
Hollings C. Renton
II-6
Table of Contents
INDEX TO EXHIBITS
Incorporated by Reference
Exhibit
Filing
Filed
Number
Description of Exhibit
Form
File No.
Exhibit
Date
Herewith
4.1
2000 Employee Stock Purchase
Plan, as amended
S-8
333-106181
4.1
6/17/2003
4.2
Amended and Restated Articles
of Incorporation
S-1
333-34340
3.1
4/7/2000
4.3
Amended and Restated Bylaws
10-Q
3.01
7/31/2002
4.4
Specimen Common Stock
Certificate
S-1
333-34340
4.2
5/18/2000
4.5
Specimen Common Stock
Certificate
10-Q
4.01
7/31/2002
4.6
Rights Agreement dated
September 26, 2002 between
Cepheid and Computershare
Trust Company as Rights
Agent, which includes as
Exhibit A the form of
Certificate of Determination
of Series A Junior
Participating Preferred
Stock, as Exhibit B the
Summary of Stock Purchase
Rights and as Exhibit C the
Form of Rights Certificate
8-A
3.02
10/4/2002
4.7
Certificate of Determination
specifying the terms of the
Series A Junior Participating
Preferred Stock of
registrant, as filed with the
Secretary of State of the
State of California on
October 2, 2002
8-A
3.02
10/4/2002
5.1
Opinion of Fenwick & West LLP
X
23.1
Consent of Independent
Registered Public Accounting
Firm
X
23.2
Consent of Fenwick & West LLP
(filed as part of
Exhibit 5.1)
X
24.1
Power of Attorney (see
signature page)
X