CIPH Ciphergen Biosystems (MM)

Dutton Associates initiates coverage of Ciphergen Biosystems (Nasdaq:CIPH) with a Speculative Buy rating and a price target of $2.00. The 14-page report by Dutton senior analyst Stephen L. Handley is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. Ciphergen Biosystems has recently narrowed the scope of its business to focus exclusively on developing proprietary diagnostic tests, and we believe that this business offers an attractive opportunity for investors. These differentiated tests are based on combinations of protein biomarkers, and as such are expected to be capable not only of more clearly identifying a particular disease, but also stratifying patients according to the risk of developing the disease and responding to specific therapy. In brief, Ciphergen�s goal is to identify proteins that may be useful biomarker-based diagnostic tests with sufficient sensitivity and specificity to aid the physician considering treatment options for patients with complex diseases. The Company has filed about 50 patents for its novel biomarker discovery technology, most of which have been accepted for review, and on January 25th announced the issuance of a European patent covering a method for aiding prostate cancer diagnosis. Management has chosen to focus primarily in the areas on oncology, cardiovascular disease, and women�s health in general, and expects to file applications with the FDA during 2H 2007 covering a test for ovarian cancer and peripheral artery disease (PAD). The Quest and Bio-Rad alliances have been transforming events for Ciphergen, and place the Company in a position to more fully capitalize on its decade long investment in protein-based technology as well as on current and prospective programs conducted with leading collaborators. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $39,500 from the Company for 4 quarterly Research Reports with coverage commencing on 03/28/2007. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.