Sceptor Industries, Inc. Collaborates On U.S. Postal Service Contract For Bio-Threat Detection; Sceptor's SpinCon Employed as Air Sampling Tool in $3.7 Million Pilot Program

Business Wire, May 13, 2002

Business Editors & Environment Writers

KANSAS CITY, Mo.--(BUSINESS WIRE)--May 13, 2002

Sceptor Industries, Inc., has been named to participate in a team selected by the U.S. Postal Service (USPS) to pilot-test an Automated Bio-agent Detection System developed for use with large-scale automated mail- sorting equipment. Designed to protect consumers and postal employees against biohazards such as anthrax, the system uses Sceptor's SpinCon(R) air sampler and cyclonic preseparators to collect airborne pathogens for analysis. Sceptor is a full-service company that develops and commercializes state-of-the-art technologies for the detection of biological and chemical threats.

Led by Northrop Grumman Corporation, the program is a collaborative effort by Sceptor Industries, Cepheid, Northrop Grumman's Automation and Information Systems Division, and Environmental Technologies Group, Inc. The team will jointly install and test its integrated bio-threat detection system to collect and rapidly analyze air samples taken from mail sorting systems and detect trace levels of DNA from anthrax spores and other biological agents.

Based upon successful completion of this $3.7 million pilot program, USPS will select equipment this summer for a potential multi- million dollar contract. Hundreds of man-hours in engineering and validation testing have already been committed by the members of the Northrop Grumman-led team, working with the USPS, leading to the creation of a fully integrated, protective solution.

"We're excited to be a part of this team and play an important role in safeguarding our Postal Service, its employees, and the American public," said Richard Jarman, chief executive officer of Sceptor. "Sceptor's lead product, the SpinCon, is capable of sampling the air for a wide range of pathogens, including viruses and bacteria, as well as anthrax."

The SpinCon, the most advanced air sampling and collection technology for biosafety and chemical protection in the industry, already has been deployed around the United States. Government and commercial customers have installed more than 125 SpinCons in both indoor and outdoor settings.

Sceptor's product line is focused on the early detection and identification of biological and chemical threats. Product offerings include laboratory and analytic biodefense services, biodefense software, custom solutions, biological and chemical safety problems, and standardized or custom-manufactured SpinCon machines, accessories, and replenishment supplies.

"This is a great partnership," said Jeff Jonas, M.D., chairman and president of Sceptor. "Sceptor has been able to rapidly customize the SpinCon and its components to meet this important need. With this first step, we believe Sceptor is well positioned to execute our growth strategy, and we anticipate introducing several new biological and chemical safety products over the next 12 months."

The company's product pipeline includes proprietary nucleic acid probes for the accurate analysis of biological agents, advancements for accurate detection of pathogens, fully integrated detection systems for biodefense, and specialized biodefense software. Through its strategic relationship with the Midwest Research Institute (MRI), Sceptor has unequalled depth of knowledge and expertise in biodefense. MRI is a not-for-profit, independent research organization with a 50-year history of scientific research in areas spanning biosafety, pharmaceuticals, and life sciences.

About Sceptor Industries

Sceptor Industries is a privately held, full-service company that develops and commercializes state-of-the-art technologies for the detection of biological and chemical threats. Government and commercial customers at more than 125 indoor and outdoor venues have deployed Sceptor's initial product, SpinCon(R), the premier air sampling and collecting tool for biowarfare and chemical defense. For more information, visit www.sceptorindustries.com.

About Northrop Grumman

Headquartered in Baltimore, Md., Northrop Grumman's Automation and Information Systems Division has been providing automation design, equipment fabrication, field deployment, and logistics support to the USPS for more than 11 years. The division is part of the company's Electronic Systems sector, a world leader in the design, development, and manufacture of defense electronics and systems.

About Cepheid

Cepheid (Nasdaq:CPHD), based in Sunnyvale, Calif., is a leading developer, manufacturer, and marketer of miniaturized, fully integrated systems for rapid, on-site detection of DNA - the universal biological identifier. Founded in 1996, the company is commercializing its technology and products for scientific, medical, and industrial applications requiring time-critical detection of human and other genes, infectious disease agents, and industrial and environmental contaminants at the point of need.

About Environmental Technologies Group, Inc.

ETG is a leading developer and manufacturer of full-service, advanced engineering technology for nuclear, biological, and chemical detection systems for government and other commercial applications. ETG is part of the Smiths Aerospace Detection & Protection Systems, along with Graseby Dynamics Ltd. in the U.K., and Barringer Technologies in the United States and Canada.