1020214--2/26/2007--CERUS

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We must develop, build and manage marketing, sales, distribution, customer service and back office functions necessary to support commercialization of the INTERCEPT Blood System in Europe We must develop regulatory capabilities for clinical-stage and Phase IV trials involving the INTERCEPT Blood System globally. We rely on third parties for manufacturing and supplying components of our platelet and plasma systems. Baxter has entered into a definitive agreement to sell its Transfusion Therapies business unit and, under that agreement, the buyer will assume Baxter s manufacturing obligations to Cerus. We will be required to identify and enter into agreements with third parties to manufacture the INTERCEPT Blood System products and related blood component storage solutions. Our potential remedies against Baxter may be inadequate in assuring that Baxter meets its contractual obligations.

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1020214--2/26/2007--CERUS_CORP