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Fresenius Medical Care AG & Co. KGaA ("the company"), the world's largest provider of dialysis products and services, today announced its signing of a sales and purchase agreement with Bumrungrad International Ltd. to acquire Asia Renal Care Ltd. The acquisition marks a significant expansion of the company's activities in the field of dialysis services in the Asia-Pacific region.

The transaction will be subject to antitrust notification in Taiwan and Singapore. If approved and closed, the acquired operations will add approximately $80 million in annual revenue and be accretive to earnings in the first year after closing of the transaction.

Founded in 1997, Asia Renal Care has since become the second largest provider of dialysis and related services in the Asia-Pacific region (behind Fresenius Medical Care). Asia Renal Care operates more than 100 clinics throughout Asia treating about 6,200 patients. In 2007 Asia Renal Care became a wholly owned subsidiary of Bumrungrad International Ltd., an associate company of Bumrungrad Hospital PCL.

The acquisition of Asia Renal Care will strengthen Fresenius Medical Care's leading market position in the Asia-Pacific region, where more than 680,000 patients require regular and life-sustaining dialysis treatment. The Asian markets are set to experience strong growth in the next few years. The number of dialysis patients is forecast to grow to over 1 million within the next five years.

"We are very pleased to further strengthen our activities and presence in dialysis services across most of the key Asian countries. Through this strategic and significant acquisition, we add to our existing leading position a large business managed by excellent professionals and very valuable partners in every single market," said Roberto Fusté, Member of the Management Board and Chief Executive Officer for Asia-Pacific.

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Fresenius Medical Care AG & Co. KGaA ("the company"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, is expanding its dialysis services business in the Russian Federation. The company announced today that it has signed an agreement to acquire KNC (KRAEVOY NEFROLOGICHESKIY CENTR), a private operator of dialysis clinics in Russia's Krasnodar region. The acquired operations will add approximately $25 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

By acquiring KNC, Fresenius Medical Care intends to strengthen its position in the Russian Federation's growing dialysis services market, where today more than 20,000 patients require a regular and life-sustaining renal replacement therapy. Fresenius Medical Care currently operates five dialysis clinics treating around 570 patients and is the leading provider of dialysis products in Russia. KNC currently treats around 1,000 patients in five dialysis clinics located in Krasnodar, a region situated approximately 1,200 kilometers south of Moscow, on the Black Sea. KNC is the only provider of dialysis services in Krasnodar, which at an estimated patient growth of more than 10% per year is one of the regions with the highest demand for dialysis services in the Russian Federation.

In order to meet this rising demand, Fresenius Medical Care plans to expand the capacity of the acquired clinics directly upon closing of the acquisition. "We are very pleased that we soon will be able to provide both high-quality dialysis products and services to Krasnodar's patients," said Dr. Emanuele Gatti, chief executive officer for Europe, Latin America, the Middle East and Africa as well as global chief strategist of Fresenius Medical Care. "While we seek to enhance our presence in Russia on a long-term basis, our first aim will be to accommodate the large number of patients in Krasnodar who until now have been unable to receive treatment due to a lack of capacities."

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Fresenius provides an incentive to inventors for what often is a long path from their initial flash of genius to ultimately achieving a marketable product. In this endeavor, the health care group aims to promote innovative developments within all medical sectors. For the event's 11th running, bright minds will be able to present their ingenuity during the Fresenius Inventors' Fair. The biennial event will be staged in conjunction with MEDICA 2010, the world's largest medical trade fair, held in Düsseldorf Nov. 17–20. The adjunct fair offers participating researchers, developers and inventors an international forum to attract the attention of potential business partners and investors for the marketing and advancement of their initial innovations up to market-ready products. The top three entries are chosen on the opening day of the MEDICA event by an independent jury comprised of medical specialists and business professionals. The Fresenius Inventors' Award carries cash prizes totaling €10,000. Above all, recognition is based on the criteria of potential usefulness, innovativeness and feasibility of being implemented. Registration of entries for the competition is now open.

An engineer hailing from Karlsruhe, Dr. Nicole Kikillus was the winner of the 2008 Fresenius Inventors' Award. She developed a particularly reliable method of detecting atrial fibrillation in patients, even if no such fibrillation occurs during a medical checkup. This condition is the leading clinical type of cardiac arrhythmia and increases the risk of stroke. Kikillus' software analyzes a 30- to 60-minute single-channel electrocardiogram, yielding an early diagnosis of atrial fibrillation patients and enabling therapy to reduce the chances of stroke.

As of immediately, physicians, researchers, engineers and other practitioners from the hospital field and medical care profession can submit their entries for consideration. Fresenius will provide winning entries display space and an exhibit booth at the fair free of charge. Selected from among numerous professionals from all medical fields who entered the previous competition, 20 such exhibitors presented their innovations at the 2008 Fresenius Inventors' Fair.

The deadline for competition entries is Oct. 1, 2010. Further details about the Fresenius Inventors' Fair can be found at www.fresenius.com/inventorsfair; and about the MEDICA event at www.medica-tradefair.com. Contact: Fresenius SE; Keyword: "Inventors' Fair", 61346 Bad Homburg, Telefax: +49 61 72 - 6 08 22 94, E-mail: daniela.hegemann@fresenius.com.

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Fresenius Medical Care AG & Co. KGaA ("the company"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, has entered into a long-term, 10-year exclusive distribution agreement with Japanese-based Nikkiso Co. Ltd. for hemodialysis and peritoneal dialysis products in Japan. With this agreement, both companies aim to further expand their market share of dialysis products, particularly dialyzers and peritoneal dialysis products, in Japan by utilizing Fresenius Medical Care's efficient manufacturing technologies while relying on Nikkiso's strong domestic distribution network.
In addition, the company intends to expand its leadership in the Republic of Korea's dialysis product market by acquiring Nikkiso Medical Korea Co. Ltd., a wholly owned subsidiary of Nikkiso Co. Ltd.
The acquired operations will add approximately $15 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.
"The strategic alliance with Nikkiso will generate significant value to both parties in Japan and Korea, as each company is concentrating on its strengths in these markets," said Roberto Fusté, Fresenius Medical Care's chief executive officer for the Asia-Pacific region. Background information on the dialysis market in Japan With approximately 300,000 dialysis patients, Japan is the biggest dialysis market in the Asia-Pacific region. The patient growth rate is around 2%-3% p.a. In Japan, Fresenius Medical Care is active in the dialysis product business by means of its own sales and marketing channels as well as through distribution partners. The company also provides consulting services for dialysis clinics. However, it does not directly operate dialysis clinics in Japan due to legal restrictions.
Background information on the dialysis market in Korea The Republic of Korea is a fast-growing market with a patient growth rate of 6%-7%. The number of patients requiring regular dialysis therapy is approximately 50,000. Fresenius Medical Care is the leading company in the Republic of Korea's dialysis product market and, through its partnership with the Yeolin-Medical Foundation, is currently treating more than 850 patients in 16 dialysis clinics.

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Based on preliminary results, Fresenius Group earnings for the first half of 2010 were substantially ahead of expectations. Group net income¹ increased by 23% in constant currency to €302 million (H1 2009: €240 million).

The earnings development was mainly driven by Fresenius Kabi, especially in North America, where new product launches and strong demand due to drug shortages contributed to growth.

Fresenius Kabi also expects to achieve attractive growth in the second half of 2010, albeit more in line with the initial 2010 guidance. In addition, Fresenius Kabi plans to invest in further efficiency improvements in Europe, resulting in expected one-time expenses of approximately €10 million to €20 million pre-tax in the second half of 2010.

Based on the Group's financial results in the first half and including the planned one-time expenses, Fresenius now expects net income1 to increase by 10% to 15% in constant currency in 2010. Previously, the Company expected net income to increase by 8% to 10% in constant currency.

The detailed financial results for the first half of 2010 will be announced on August 3, 2010, as originally scheduled.


¹Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

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Summary Second Quarter 2010
 

Summary First Half 2010

 
Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA ("the Company" or "FMC AG & Co. KGaA"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced its results for the second quarter and first half of 2010.

Second Quarter 2010

Revenue

Net revenue for the second quarter of 2010 increased by 7% to $2,946 million (also +7% at constant currency) compared to the second quarter of 2009. Organic revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to $2,224 million (also +8% at constant currency) in the second quarter of 2010. Dialysis product revenue rose by 2% to $722 million (+3% at constant currency) in the same period.
 

North America revenue increased by 8% to $2,027 million. Organic revenue growth was 7%. Dialysis services revenue grew by 8% to $1,817 million. Average revenue per treatment for U.S. clinics increased to $356 in the second quarter of 2010 compared to $344 for the same quarter in 2009 and $355 for the first quarter of 2010. This development was attributable principally to reimbursement increases and increased utilization of pharmaceuticals. Dialysis product revenue increased by 5% to $210 million due to higher sales of hemodialysis disposables and dialysis machines.
 

International revenue increased by 4% to $919 million. Based on constant currency, revenue grew by 5%. Organic revenue growth was 3%. Dialysis services revenue was $407 million, an increase of 8% (+9% at constant currency). Dialysis product revenue was stable at $512 million compared to the corresponding figure last year and increased by 2% at constant currency, led by increased sales of hemodialysis solutions and concentrates, dialyzers and bloodlines as well as products for acute care treatment.

Earnings

Operating income (EBIT) increased by 11% to $465 million compared to $418 million in the second quarter of 2009 resulting in an operating margin of 15.8% compared to 15.1% for the corresponding quarter in 2009.
 

In North America, the operating margin increased from 15.9% to 16.3% in the second quarter of 2010. The margin development was mainly impacted favorably by an increase in revenue per treatment as well as the effect of economies of scale from revenue growth.
 

In the International segment, the operating margin increased from 17.3% to 18.8%. The margin development was mainly influenced positively by economies of scale from revenue growth, favorable foreign exchange rates and lower bad debt expenses. This was partially offset by higher depreciation expenses as a result of the expansion of our production capacities.
 

Net interest expense for the second quarter of 2010 was $68 million compared to $76 million in the comparable quarter of 2009, mainly attributable to lower short-term interest rates.
 

Income tax expense was $129 million for the second quarter of 2010 compared to $103 million in the second quarter of 2009, reflecting effective tax rates of 32.6% and 30.2%, respectively. In both the second quarter of 2010 and 2009 tax expense benefited from changes in estimates of future tax payments.
 

Net income attributable to FMC AG & Co. KGaA for the second quarter of 2010 was $248 million, an increase of 12% compared to the same quarter of 2009.
 

Earnings per share (EPS) for the second quarter of 2010 rose by 12% to $0.83 per ordinary share compared to $0.74 for the second quarter of 2009. The weighted average number of shares outstanding for the second quarter of 2010 was approximately 300.0 million shares compared to 298.0 million shares for the second quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past twelve months.
 

Cash Flow
 

In the second quarter of 2010, the Company generated $294 million in cash from operations, representing approximately 10% of revenue. The cash flow performance was influenced positively by improvements in elements of working capital and increased earnings, partially offset by higher income tax payments.
 

A total of $119 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $175 million compared to $143 million in the second quarter of 2009. A total of $68 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $107 million compared to $98 million in the second quarter of last year.
 
 

First Half 2010
 

Revenue and Earnings
 

Net revenue was $5,828 million, up 9% from the first half of 2009. At constant currency, net revenue rose 8%. Organic growth was 7% in the first six months of 2010.
 

Operating income (EBIT) increased by 9% to $888 million compared to $813 million in the first half of 2009, resulting in an operating margin of 15.2% compared to 15.3% for the first half of 2009.
 

Net interest expense for the first six months of 2010 was $135 million compared to $149 million in the same period of 2009.
 

Income tax expense was $257 million in the first half of 2010 compared to $214 million in the same period in 2009, reflecting effective tax rates of 34.1% and 32.2%, respectively.
 

For the first half of 2010, net income attributable to FMC AG & Co. KGaA was $459 million, up 10% from the first half of 2009.
 

In the first six months of 2010, earnings per ordinary share rose 9% to $1.53. The weighted average number of shares outstanding during the first half of 2010 was approximately 299.8 million.
 
 

Cash flow
 

Cash from operations during the first six months of 2010 was $643 million compared to $437 million for the same period in 2009, representing approximately 11% of revenue.
 

A total of $218 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first six months of 2010 was $425 million compared to $188 million in the same period in 2009. A total of $150 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $275 million compared to $107 million in the first half of last year.
 

Please refer to the attachments for a complete overview on the second quarter and first half 2010.
 
 

Patients – Clinics – Treatments
 

As of June 30, 2010, Fresenius Medical Care treated 202,414 patients worldwide, which represents a 6% increase compared to the previous year. North America provided dialysis treatments for 135,088 patients, the number of patients treated rose by 5%. Including 29 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 136,884. The International segment served 67,326 patients, the number of patients treated increased by 11%.
 

As of June 30, 2010, the Company operated a total of 2,599 clinics worldwide, which represents a 5% increase compared to the previous year. The number of clinics is comprised of 1,795 clinics in North America (1,824 including managed clinics) and 804 clinics in the International segment, representing an increase of 4% and 9%, respectively.
 

Fresenius Medical Care delivered approximately 15.26 million dialysis treatments worldwide during the first six months of 2010. This represents an increase of 6% compared to the corresponding period last year. North America accounted for 10.22 million treatments, an increase of 6%, and the International segment delivered 5.03 million treatments, an increase of 8%.
 

Employees
 

As of June 30, 2010, Fresenius Medical Care had 70,096 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of approximately 2,100 employees is due to overall growth in the Company's business.
 

Debt/EBITDA Ratio

 
The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.78 at the end of the second quarter of 2009 to 2.46 at the end of the second quarter 2010. At the end of 2009, the debt/EBITDA ratio was 2.46.

Rating

 
Standard & Poor's Rating Services continued to rate the Company's corporate credit as ‘BB'. On April 29, 2010, Standard & Poor's has raised the outlook from ‘stable' to ‘positive'. Moody's continued to rate the Company's corporate credit as ‘Ba1' with a ‘stable' outlook. Fitch rates the Company's corporate credit as ‘BB' also with a ‘stable' outlook. For further information on Fresenius Medical Care's credit ratings, maturity profiles and credit instruments, please visit our website at www.fmc-ag.com / Investor Relations / Credit Relations.
 

Outlook for 2010
 

For the full year of 2010, the Company confirms its outlook.
 

Revenue is expected to grow to more than $12 billion.
 

Net income attributable to FMC AG & Co. KGaA is expected to be between $950 million and $980 million in 2010.
 

The Company expects to spend $550 million to $650 million on capital expenditures and up to $500 million (previously up to $400 million) on acquisitions. The debt/EBITDA ratio is expected to be below 2.5 by the end of 2010.
 

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased to report that, after our successful start into the year, Fresenius Medical Care has carried forward a strong performance this past quarter and half year that is fully on track with our full-year guidance and strategy. Our operational performance, but also our quality performance in products and services has been excellent. We have continued to strategically expand our global presence in dialysis services through acquisitions in attractive growing markets such as the Russian Federation and Asia. And we look forward to the opportunities posed by the upcoming "bundled" reimbursement system in the U.S. – opportunities we feel we are uniquely poised to seize, given our vertical integration and consistent focus on delivering the best quality care for our patients in the most efficient way possible."
 

Conference Call
 

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and the first half year of 2010 on Tuesday, August 3, 2010, at 3:30 p.m. CEDT / 9:30 a.m. EDT. The Company invites investors to listen to the live webcast of the call at the Company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

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• Sales: €7.7 billion, +11% at actual rates, +10% in constant currency
• EBIT: €1.1 billion, +14% at actual rates, +12% in constant currency
• Net income: €302 million, +26% at actual rates, +23% in constant currency

• Continued strong growth in all business segments
• Fresenius Kabi significantly exceeds expectations, primarily in North America
• All business segments raise or fully confirm 2010 guidance
• 2010 Group earnings outlook* raised

Group net income* of €302 million, announced on July 27, 2010, on a preliminary basis, remained unchanged.

Ulf Mark Schneider, CEO of Fresenius SE: "Our continued focus on revenue growth and the Group's operating margin proved to be successful. All business segments achieved excellent financial results. Fresenius Kabi significantly exceeded our expectations, primarily due to the successful sales and earnings development of APP Pharmaceuticals in North America. We are very confident about our prospects for the second half of 2010 and raise our earnings outlook for the Group."

Earnings outlook for 2010 raised
Based on the Group's excellent financial results in the first half, Fresenius now expects net income* to increase by 10% to 15% in constant currency in 2010. Previously, the Company expected net income to increase by 8% to 10% in constant currency. Fresenius fully confirms its sales guidance of 7% to 9% in constant currency.

The improved earnings outlook already includes expected one-time expenses of €10 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements in Europe in the second half of 2010.

The Group plans to invest approximately 5% of sales in property, plant and equipment.

The net debt/EBITDA ratio is expected to reach a level below 3.0.

*Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

Strong organic sales growth of 9%
Group sales increased by 11% at actual rates and by 10% in constant currency to €7,686 million (H1 2009: €6,895 million). Organic sales growth was 9%. Acquisitions contributed a further 1%. Currency translation had a positive effect of 1%.

Sales growth in the business segments was as follows:

In Europe, sales grew by 9% in constant currency with organic sales growth contributing 8%. In North America, sales grew by 11% in constant currency. Organic sales growth was 10%. Organic growth rates in the emerging markets reached 4% in Asia-Pacific and 12% in Latin America. Organic sales growth in Asia-Pacific was impacted by the volatility of Fresenius Vamed's project business.

*Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

Excellent earnings growth
Group EBITDA increased by 13% at actual rates and by 11% in constant currency to €1,425 million (H1 2009: €1,260 million). Group EBIT improved by 14% at actual rates and by 12% in constant currency to €1,118 million (H1 2009: €985 million). The EBIT margin increased to 14.5% (H1 2009: 14.3%). The excellent growth was mainly driven by Fresenius Kabi, especially in North America. In the first quarter of 2010, EBIT was impacted by the devaluation of the Venezuelan bolivar and related charges at Fresenius Medical Care.

Group net interest improved to -€281 million (H1 2009: -€294 million).

The other financial result was -€96 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€117 million and the Contingent Value Rights (CVR) of €21 million. Both are non-cash items.

The Group tax rate* was 32.0% (H1 20091: 30.5%). The tax rate in the first half of 2009 was influenced by a revaluation of a tax claim at Fresenius Medical Care.

Noncontrolling interest increased to €267 million (H1 2009: €240 million), of which 94% was attributable to the minority interest in Fresenius Medical Care.

Group net income** increased by 26% at actual rates and by 23% in constant currency to €302 million (H1 20092: €240 million). Earnings per ordinary share increased to €1.86 and earnings per preference share to €1.87 (H1 2009: ordinary share €1.49; preference share €1.50). This represents an increase of 26% for both share classes.

Net income*** (including special items) was €240 million, or €1.48 per ordinary share and €1.49 per preference share.

*Adjusted for the effect of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) related to the acquisition of APP Pharmaceuticals.
**Net income attributable to Fresenius SE; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
***Net income attributable to Fresenius SE.

Continued investments in growth
The Fresenius Group spent €320 million on property, plant and equipment (H1 2009: €283 million). Acquisition spending was €151 million (H1 2009: €156 million).

Strong cash flow
Operating cash flow increased by 34% to €805 million (H1 2009: €600 million), mainly driven by strong earnings growth and tight working capital management. The cash flow margin improved to 10.5% (H1 2009: 8.7%). Net capital expenditure was €320 million (H1 2009: €292 million). Free cash flow before acquisitions and dividends improved by 57% to €485 million (H1 2009: €308 million). Free cash flow after acquisitions and dividends* was €58 million (H1 2009: -€76 million).

*Does not include a €100 m cash out for a short-term bank deposit by Fresenius Medical Care in Q2 2010.

Solid balance sheet structure
The Fresenius Group's total assets grew by 14% to €23,907 million (Dec. 31, 2009: €20,882 million). In constant currency, the increase was 4%. Current assets increased by 21% at actual rates and by 11% in constant currency to €6,474 million (Dec. 31, 2009: €5,363 million). Non-current assets grew by 12% at actual rates and by 1% in constant currency to €17,433 million (Dec. 31, 2009: €15,519 million). The change at actual rates is mainly attributable to the 15% strengthening of the U.S. dollar against the euro since year-end 2009.

Total shareholders' equity increased by 13% at actual rates to €8,635 million (Dec. 31, 2009: €7,652 million). In constant currency, total shareholders' equity remained close to previous year's level. The equity ratio was 36.1% (Dec. 31, 2009: 36.6%).

Group debt grew by 13% at actual rates to €9,387 million (Dec. 31, 2009: €8,299 million). In constant currency, Group debt increased by 2%.

For the net debt/EBITDA leverage calculation, net debt is translated at the currency spot rates as of June 30, whereas EBITDA is translated at the average exchange rates of the last twelve months. Due to the strengthening of the U.S. dollar against the euro, the net debt/EBITDA ratio increased to 3.16 as of June 30, 2010 (Dec. 31, 2009: 3.01). At identical exchange rates for net debt and EBITDA, the ratio further improved to 2.92.

Number of employees increased
As of June 30, 2010, Fresenius employed 133,197 people (Dec. 31, 2009: 130,510). This is an increase of 2%.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.

Fresenius Biotech reported sales of approximately €1.4 million with the trifunctional antibody Removab (catumaxomab) in the first half of 2010. Preparations for market launches in other European countries are ongoing.

Fresenius Biotech's EBIT was -€15 million (H1 2009: -€22 million). For 2010, Fresenius Biotech confirms its guidance of an EBIT between -€35 million and -€40 million.

Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of June 30, 2010, Fresenius Medical Care was treating 202,414 patients in 2,599 dialysis clinics.

•  High organic sales growth of 7%
• 2010 outlook fully confirmed

Fresenius Medical Care achieved sales growth of 9% to US$5,828 million (H1 2009: US$5,323 million). Organic growth was 7%, acquisitions contributed 1% and currency translation contributed a further 1%.

Sales in dialysis care increased by 11% at actual rates and by 10% in constant currency to US$4,395 million (H1 2009: US$3,977 million). Dialysis product sales grew by 6% at actual rates and 4% in constant currency to US$1,433 million (H1 2009: US$1,346 million).

In North America, sales increased by 9% to US$3,986 million (H1 2009: US$3,650 million). Dialysis services revenue increased by 10% to US$3,578 million. Average revenue per treatment for U.S. clinics increased to US$356 in the second quarter of 2010 compared to US$344 for the same quarter in 2009 and US$355 in the first quarter of 2010. This development was principally attributable to reimbursement increases and increased utilization of pharmaceuticals. Sales in dialysis products improved by 3% to US$408 million in the first half of 2010.

Sales outside North America ("International" segment) grew by 10% at actual rates and by 6% in constant currency to US$1,842 million (H1 2009: US$1,673 million). Sales in dialysis care increased by 13% (9% in constant currency) to US$817 million. Dialysis product sales improved by 8% (4% in constant currency) to US$1,025 million.

EBIT increased by 9% to US$888 million (H1 2009: US$813 million) resulting in an EBIT margin of 15.2% (H1 2009: 15.3%).

In North America, EBIT margin increased to 16.0% (H1 2009: 15.6%). Margin development was favorably influenced by an increase in revenue per treatment as well as the effect of economies of scale from revenue growth.

In the International segment, EBIT margin was 17.6% (H1 2009: 18.0%). EBIT margin was positively influenced by the effect of economies of scale from revenue growth, favorable foreign exchange rate effects and lower bad debt expenses. It was impacted by the devaluation of the Venezuelan bolivar and related charges as well as higher depreciation expenses as a result of the expansion of production capacities.

Net income* increased by 10% to US$459 million (H1 2009: US$419 million).

In the second quarter of 2010, Fresenius Medical Care announced that it has signed an agreement to acquire Asia Renal Care Ltd. Asia Renal Care operates more than 100 clinics throughout Asia treating about 6,200 patients. The acquisition of Asia Renal Care will strengthen Fresenius Medical Care's leading market position in the Asia-Pacific region. Furthermore, Fresenius Medical Care acquired an operator of dialysis clinics in Russia's Krasnodar region. KNC currently treats around 1,000 patients in five dialysis clinics. By acquiring KNC, Fresenius Medical Care intends to strengthen its position in the Russian Federation's growing dialysis services market.

For the full year 2010, Fresenius Medical Care confirms its outlook. Revenue is expected to grow to more than US$12 billion. Net income1 is expected to be between US$950 million and US$980 million.

For further information, please see Fresenius Medical Care's Press Release at www.fmc-ag.com.

*Net income attributable to Fresenius Medical Care AG & Co. KGaA.

Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company also is a leading provider of medical devices and transfusion technology products.

• Strong organic sales growth of 11% - EBIT margin at 19.9%
• Excellent development especially in North America
• 2010 EBIT margin outlook raised - Sales growth expected at upper end of range

Sales increased by 16% to €1,745 million (H1 2009: €1,500 million). Organic sales growth was 11%. Acquisitions contributed 1%. Currency translation had a positive effect of 4%. This was mainly attributable to the strengthening of the currencies in Brazil, Australia and South Africa against the euro.

In Europe, sales reached €836 million (H1 2009: €772 million), driven by 5% organic growth. In North America, sales increased to €445 million (H1 2009: €347 million). Organic sales growth was 26%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 12% to €279 million (H1 2009: €235 million). Sales in Latin America and Africa increased to €185 million (H1 2009: €146 million), organic sales growth was 7%.

EBIT grew by 20% to €347 million (H1 2009: €290 million). The EBIT margin improved to 19.9% (H1 2009: 19.3%). The EBIT increase is mainly driven by the excellent development in North America where new product launches and strong demand due to drug shortages had a positive effect.

Net interest improved to -€141 million (H1 2009: -€157 million). Net income* increased by 60% to €136 million (H1 2009: €85 million).

Sales at APP Pharmaceuticals (APP) increased by 28% to US$521 million (H1 2009: US$408 million). Adjusted EBITDA** grew by 9% to US$186 million (H1 2009: US$171 million). EBIT increased by 17% to US$151 million (H1 2009: US$129 million). The EBIT margin was 29.0%. In addition to the reported APP earnings, Fresenius Kabi generated EBIT contributions from imported IV drugs distributed by APP in North America.

The number of APP's 2010 product approvals from the FDA (U.S. Food and Drug Administration) has increased to four in the first half of 2010, following only one approval in the first quarter of 2010. In addition, Fresenius Kabi Oncology received three approvals from the FDA in the first half of 2010.

Operating cash flow of Fresenius Kabi increased by 14% to €189 million (H1 2009: €166 million). The cash flow margin was 10.8% (H1 2009: 11.1%). Cash flow before acquisitions and dividends grew by 13% to €124 million (H1 2009: €110 million).

Fresenius Kabi raises its EBIT margin outlook for 2010 and forecasts a margin between 18.5% and 19.0%. The previous guidance was 18% to 19%. The raised guidance already includes expected one-time expenses of €10 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements in Europe in the second half of 2010. Organic sales growth is projected to reach the upper end of the announced range of 7% to 9%.

Special items relating to the acquisition of APP Pharmaceuticals are included in the segment "Corporate/Other".

*Net income attributable to Fresenius Kabi AG
**Non-GAAP financial measures - Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP.


Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. HELIOS Kliniken Group owns 61 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof ~600,000 inpatients, and operates a total of more than 18,500 beds.

• Continued high organic sales growth of 6%
• 2010 sales and EBIT expected at upper end of range

Sales increased by 5% to €1,223 million (H1 2009: €1,164 million). Organic growth was again strong and achieved 6%. This was mainly driven by an increase in hospital admissions. The divestiture of one acute care hospital as of January 1, 2010 impacted sales growth by 1%.

EBIT grew by 10% to €110 million (H1 2009: €100 million). The EBIT margin improved to 9.0% (H1 2009: 8.6%). Net income* increased by 17% to €62 million (H1 2009: €53 million).

Fresenius Helios fully confirms its outlook for 2010. The company projects organic sales growth of 3% to 5% and EBIT to be between €220 million and €230 million. For both metrics, the company expects to achieve the upper end of the respective range.

HELIOS conducted a patient survey in 2009 and received feedback from more than 67,000 patients. The results were published in the second quarter of 2010. Overall satisfaction and the willingness to recommend the HELIOS hospitals to others were 95%. The feedback confirms the high quality of both medical staff (95% positive feedback) and nursing staff (94% positive feedback) at the HELIOS clinics.

*Net income attributable to HELIOS Kliniken GmbH.

Fresenius Vamed
Fresenius Vamed offers engineering and services for hospitals and other health care facilities.

• Order intake more than doubled - Order backlog near all-time high
• 2010 sales and EBIT expected at upper end of range

Sales increased by 37% to €338 million (H1 2009: €247 million). Organic sales growth reached 36%. Sales in the project business rose by 53% to €230 million (H1 2009: €150 million). Sales in the service business increased by 11% to €108 million (H1 2009: €97 million).

EBIT increased to €15 million (H1 2009: €9 million). The EBIT margin improved to 4.4% (H1 2009: 3.6%). Net income* rose to €12 million (H1 2009: €8 million).

The excellent development of order intake and order backlog continued. Order intake in the project business more than doubled to €328 million (H1 2009: €156 million). Fresenius Vamed received a turnkey contract for the construction of the examination and therapy center (U/B West) for the University Hospital in Cologne/Germany with an order volume of €62 million. Following the completion of the project, Fresenius Vamed will be responsible for the service management of the center for a period of 25 years. The order intake also includes the supply of medical-technical equipment to the King Hamad general hospital in Bahrain with an order volume of €52 million. Order backlog increased to €768 million (Dec. 31, 2009: €679 million, +13%).

Fresenius Vamed fully confirms its outlook for 2010 and expects to grow both sales and EBIT at the upper end of the targeted range of 5% to 10%.

*Net income attributable to VAMED AG.

Analyst Meeting and Audio Webcast
As part of the publication of the results for the first half of 2010, a conference call will be held on August 3, 2010 at 2.00 p.m. CEDT (8.00 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet atwww.fresenius.com, Investor Relations, Presentations. Following the call, a replay of the conference call will be available on our website.

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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Fresenius Medical Care AG & Co. KGaA (Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced that it has signed an agreement to acquire Gambro's worldwide peritoneal dialysis (PD) business. Gambro has decided to prioritize its investments in the hemodialysis field. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the homecare market, especially in Europe and Asia-Pacific.

The transaction is still subject to necessary regulatory approvals by the relevant antitrust authorities as well as works council consultations in some jurisdictions. Once the acquisition is approved and closed, the acquired operations will add approximately $60 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction.

As the third-largest provider of PD products and services, Gambro currently serves over 4,000 PD patients in more than 25 countries, with a specific focus on Asia-Pacific and Europe. Fresenius Medical Care, the leader in hemodialysis and the world's No. 2 in PD, currently serves more than 190,000 hemodialysis patients and more than 37,000 PD patients around the globe. Approximately 11% of the world's dialysis patients are treated by means of PD today; in 2009 their number grew by more than 6% to around 203,000.

"Promoting our growth in home therapies, of which PD is a key element, has been a defined path in our overall growth strategy, and we are convinced that Gambro's PD operations will be an excellent fit with Fresenius Medical Care. Bringing together the experienced PD teams of both companies and our mutual focus on biocompatible PD solutions for high-quality patient care will give us a unique opportunity to complete our PD-product offering. The acquisition will also significantly strengthen our sales and distribution network and expand our global presence in the homecare market," said Ben Lipps, chief executive officer of Fresenius Medical Care.

Contact

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T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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Fresenius Medical Care AG & Co. KGaA (Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced successful completion of the upsizing and extension of its senior secured credit facility. The refinancing of the revolving facility and Term Loan A was well received with a substantial oversubscription and enabled the company to upsize these facilities by US$250 million for a total facility of US$2.565 billion. The new agreement was extended from March 31, 2011, to March 31, 2013, matching the final maturity of the US$1.546 billion Term Loan B. The facilities will be used for general corporate purposes and working capital needs.

Michael Brosnan, chief financial officer of the company, commented: "We are pleased to have successfully extended our senior credit agreement which provides continued financial flexibility for the company. The significant interest expressed by our lenders reflects their confidence in our sustainable financial strength and Fresenius Medical Care's future development."

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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Christian Wulff, President of the Federal Republic of Germany, today experienced Fresenius Medical Care's activities in the treatment of dialysis patients in Russia first-hand. During his current trip to Russia, Wulff visited a Fresenius Medical Care dialysis clinic in Ulyanovsk, about 700 kilometers east of Moscow. A 50-person delegation of businessmen, politicians and journalists joined the Federal President. The president took the opportunity to learn about the treatment of patients with chronic kidney failure and spoke with doctors, care personnel and patients. The clinic in Ulyanovsk is one of the 10 dialysis clinics the world's leading provider of dialysis services and products now operates in Russia.

"The president's visit is a major honor for our company as well as the clinic's employees and management," said Dr. Emanuele Gatti, chief executive officer for Europe, Latin America, Middle East and Africa as well as global chief strategist of Fresenius Medical Care. "At the same time, it highlights how important the close cooperation between German and Russian partners is to improving health care in this large country. There is still not enough capacity to treat all the dialysis patients in Russia. We expect the strong increase in the number of cases to continue in the coming years. Our goal is to further expand our long-time presence in the country and to treat as many dialysis patients as possible at a supreme quality."

Fresenius Medical Care is the leading provider of dialysis products in Russia. In cooperation with the Russian pharmaceutical company Rester, Fresenius Medical Care has operated a production site for peritoneal dialysis solutions in Izhevsk, the capital of the Udmurt Republic, since 2008. The company also offers dialysis services for patients with chronic kidney failure in its 10 Russian clinics. Currently, more than 20,000 patients regularly receive life-sustaining renal replacement therapy in Russia.

Fresenius Medical Care first opened the Ulyanovsk clinic in 2007. It was the first of the company's own clinics in Russia. Currently, 281 patients receive hemodialysis and 61 peritoneal dialysis there. The clinic employs a team of 73, among them 10 doctors, including the head nephrologist, as well as 52 nurses and nurses' assistants. This year Fresenius Medical Care also started construction on a second dialysis clinic in another Ulyanovsk neighborhood. It should be complete in 2011.

Note for the media: Pictures related to this press release can be found in the internet under: http://tinyurl.com/fme-ulyanovsk