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The nature of data in enterprises and on the Internet is changing. Data used to be stored in a database first and queried later. Today timely processing of new data, represented as events, is increasingly valuable. In many domains, complex event processing (CEP) systems detect patterns of events for decision making. Examples include processing of environmental sensor data, trades in financial markets and RSS web feeds. Unlike conventional database systems, most current CEP systems pay little attention to query optimisation. They do not rewrite queries to more efficient representations or make decisions about operator distribution, limiting their overall scalability. This paper describes the NEXT CEP system that was especially designed for query rewriting and distribution. Event patterns are specified in a high-level query language and, before being translated into event automata, are rewritten in a more efficient form. Automata are then distributed across a cluster of machines for detection scalability. We present algorithms for query rewriting and distributed placement. Our experiments on the Emulab test-bed show a significant improvement in system scalability due to rewriting and distribution.