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

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The trifunctional antibody Removab^® (Catumaxomab) from Fresenius Biotech was awarded this year's Galenus von Pergamon Prize in the "Specialist Care" category. The jury acknowledged Removab^®'s new therapeutic mechanism and medical relevance for the treatment of malignant ascites. The prize underlines Removab^®'s unique position among innovative oncology drugs. The Galenus von Pergamon Prize awarded by "Springer Medizin Ärzte Zeitung" honors research and innovative drug development in Germany. An independent jury awards the prize annually in the "Primary Care" category and in the "Specialist Care" category. This year's awards ceremony was held on October 21.

Dr. Christian Schetter, CEO of Fresenius Biotech: "Winning the Galenus von Pergamon Prize is a significant recognition of our work. The trifunctional antibody Removab^® offers not only a new approach to cancer treatment, it also significantly improves our patients' quality of life. We are currently preparing studies to investigate the antibody's effectiveness in the treatment of other indications as well as for intravenous administration."

Removab^®, with its trifunctional mode of action, represents the first of a new generation of antibodies. Removab^® binds to three different cell types simultaneously: One arm of the antibody binds to the EpCAM (epithelial cell adhesion molecule) antigen in carcinoma cells, another arm binds to the CD3 molecule of T cells, and the third binds to the intact Fc region of accessory immune effector cells (such as macrophages, monocytes, dendritic cells and natural killer cells). This simultaneous binding subsequently results in the mutual stimulation and activation of T cells and accessory cells, enabling the generation of a stronger immune response and destruction of cancer cells that are the main cause of ascites.

Removab^® has been available in the European Union for treatment of malignant ascites since April 2009. Catumaxomab (Removab^®) is a trifunctional antibody developed by TRION Pharma GmbH. Fresenius Biotech is responsible for the clinical development, approval and commercialization of Removab^®.

Contact

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

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Summary Third Quarter 2010:

Summary First Nine Months 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 third quarter and the first nine months of 2010.

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

Third Quarter 2010:

Revenue

Net revenue for the third quarter of 2010 increased by 6% to $3,058 million (+7% at constant currency) compared to the third quarter of 2009. Organic revenue growth worldwide was 6%. Dialysis services revenue grew by 8% to $2,321 million (+9% at constant currency) in the third quarter of 2010. Dialysis product revenue decreased by 1% to $737 million and increased by 3% at constant currency in the same period.

North America revenue increased by 6% to $2,071 million. Organic revenue growth was 6%. Dialysis services revenue grew by 7% to $1,863 million. Average revenue per treatment for U.S. clinics increased to $359 in the third quarter of 2010 compared to $348 for the same quarter in 2009 and $356 for the second quarter of 2010. This development was attributable principally to reimbursement increases. Dialysis product revenue slightly decreased from $209 million in the third quarter of 2009 to $208 million in the third quarter of 2010. Sales performance was impacted favorably by higher sales of bloodlines and machines and higher product sales in the home therapy market. This was offset by changes in the dialysis products mix and lower Medicare average selling prices (ASP) for the intravenous iron product Venofer®.

International revenue increased by 5% to $987 million. Based on constant currency, revenue grew by 9%. Organic revenue growth was 5%. Dialysis services revenue was $458 million, an increase of 13% (+17% at constant currency). Dialysis product revenue decreased by 1% to $529 million compared to the corresponding figure last year and increased by 4% at constant currency, led by increased sales of dialyzers, machines and bloodlines as well as products for acute care treatments.

Earnings
 

Operating income (EBIT) for the third quarter of 2010 increased by 9% to $493 million compared to $451 million in the third quarter of 2009 resulting in an operating margin of 16.1% compared to 15.6% for the corresponding quarter in 2009.

In North America, the operating margin increased from 16.7% to 18.1%. The margin development benefitted primarily from an increase in revenue per treatment as well as the effect of economies of scale.

In the International segment, the operating margin decreased from 16.7% to 15.8% due to lower gross profit margins of acquired clinics in Europe and Asia-Pacific, the impact of Venezuelan hyperinflation and higher bad debt expense. This was partially offset by economies of scale and favorable currency effects.

Net interest expense for the third quarter of 2010 was $70 million compared to $75 million in the comparable quarter of 2009, mainly attributable to lower short-term interest rates.

Income tax expense was $153 million for the third quarter of 2010 compared to $131 million in the third quarter of 2009, reflecting effective tax rates of 36.2% and 35.0%, respectively. The full year tax rate for 2010 is expected to be between 34.5% and 35.5%.

Net income attributable to FMC AG & Co. KGaA for the third quarter of 2010 was $248 million, an increase of 10% compared to the same quarter of 2009.

Earnings per share (EPS) for the third quarter of 2010 rose by 9% to $0.82 per ordinary share compared to $0.76 for the third quarter of 2009. The weighted average number of shares outstanding for the third quarter of 2010 was approximately 301.2 million shares compared to 298.3 million shares for the third quarter of 2009. The increase in shares outstanding resulted from stock option exercises in the past 12 months.

Cash Flow

In the third quarter of 2010, the Company generated $384 million in cash from operations, representing approximately 13% of revenue. The cash flow generation was supported by increased earnings.

A total of $121 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $263 million compared to $304 million in the third quarter of 2009. A total of $87 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $176 million compared to $278 million in the third quarter of last year.

Nine Months Ended September 30, 2010

Revenue and Earnings

Net revenue for the first nine months of 2010 was $8,886 million, up 8% from the first nine months of 2009. At constant currency, net revenue also rose 8%. Organic growth was 6% in the first nine months of 2010.

Operating income (EBIT) for the first nine months of 2010 increased by 10% to $1,385 million compared to $1,265 million in the first nine months of 2009, resulting in an operating margin of 15.6% compared to 15.4% for the first nine months of 2009.

Net interest expense for the first nine months of 2010 was $206 million compared to $225 million in the same period of 2009.

Income tax expense was $410 million in the first nine months of 2010 compared to $345 million in the same period of 2009, reflecting effective tax rates of 34.7% and 33.2%, respectively.

For the first nine months of 2010, net income attributable to FMC AG & Co. KGaA was $707 million, up 10% from the first nine months of 2009.

In the first nine months of 2010, earnings per ordinary share rose 9% to $2.35. The weighted average number of shares outstanding during the first nine months of 2010 was approximately 300.3 million.

Cash Flow

Cash from operations during the first nine months of 2010 was $1,027 million compared to $880 million for the same period in 2009, representing approximately 12% of revenue.

A total of $339 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first nine months of 2010 was $688 million compared to $492 million in the same period in 2009. A total of $239 million in cash was spent for acquisitions, net of divestitures. Free Cash Flow after acquisitions and divestitures was $449 million compared to $385 million in the first nine months of last year.

Please refer to the attachments for a complete overview on the third quarter and first nine months of 2010.
 

Patients – Clinics – Treatments

As of September 30, 2010, Fresenius Medical Care treated 210,191 patients worldwide, which represents a 9% increase compared to the previous year. North America provided dialysis treatments for 135,746 patients, the number of patients treated rose by 4%. Including 30 clinics managed by Fresenius Medical Care North America the number of patients in North America was 137,623. The International segment served 74,445 patients, the number of patients treated increased by 20%.

As of September 30, 2010, the Company operated a total of 2,716 clinics worldwide, which represents an 8% increase compared to the previous year. The number of clinics is comprised of 1,809 clinics in North America (1,839 including managed clinics) and 907 clinics in the International segment, representing an increase of 3% and 19%, respectively.

Fresenius Medical Care delivered approximately 23.41 million dialysis treatments worldwide during the first nine months of 2010. This represents an increase of 7% compared to the corresponding period last year. North America accounted for 15.51 million treatments, an increase of 5%, and the International segment delivered 7.9 million treatments, an increase of 11%.

Employees

As of September 30, 2010, Fresenius Medical Care had 72,812 employees (full-time equivalents) worldwide compared to 67,988 employees at the end of 2009. The increase of approximately 4,800 employees is due to overall growth in the Company's business and acquisitions.

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased from 2.62 at the end of the third quarter of 2009 to 2.37 at the end of the third quarter of 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' with a ‘positive' outlook. 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'. On August 3, 2010, Fitch raised the outlook from ‘stable' to ‘positive'.
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.

Agreement to acquire Gambro's worldwide peritoneal dialysis business

On August 26, 2010, Fresenius Medical Care announced that it had signed an agreement to acquire Gambro's worldwide peritoneal dialysis (PD) business. Gambro 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. Completion of the acquisition is still subject to regulatory approvals by the relevant antitrust authorities as well as works council consultations in some jurisdictions.

Extension of credit agreement

On October 1, 2010, Fresenius Medical Care announced successful completion of the upsizing and extension of its senior secured credit facility. The refinancing of the revolving facility and Term Loan A enables the Company to upsize these facilities by $250 million for a total facility of $2.565 billion. The new agreement was extended from March 31, 2011, to March 31, 2013, matching the final maturity of the $1.546 billion Term Loan B. The facilities will be used for general corporate purposes and working capital needs.


Improved Outlook for 2010

Based on the strong operational performance in the first nine months of 2010, the Company improves its outlook for the full year 2010 and now expects net income attributable to FMC AG & Co. KGaA to be between $960 million and $980 million. Previously, the Company expected net income in the range of $950 million to $980 million.

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

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


"Given our excellent third quarter results, we have improved our guidance for the full year 2010," said Ben Lipps, Chief Executive Officer of Fresenius Medical Care. "Our operating performance in North America has continued to develop favorably, and we have seen good treatment growth. In International, we have continued to expand our clinic network with significant dialysis clinic acquisitions in selected countries. We remain focused to continuously improve our quality performance and operating efficiency."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and the first nine months of 2010 on Tuesday, November 2, 2010, at 3:30 p.m. CET / 10:30 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.

Contact

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

Documents

Text as PDF document (PDF, 164 KB)

• Sales: €11.8 billion, +13% at actual rates, +10% in constant currency
• EBIT: €1.8 billion, +19% at actual rates, +15% in constant currency
• Net income*: €495 million, +35% at actual rates, +30% in constant currency

• Strong sales and earnings growth in all business segments
• Group EBIT margin reaches 15%
• Net debt/EBITDA ratio improved to 2.7
• All business segments raise or fully confirm 2010 guidance
• 2010 Group outlook* raised

*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.

Ulf Mark Schneider, CEO of Fresenius SE: "All business segments continued their strong first-half sales and earnings growth and achieved excellent results in the third quarter. We are particularly pleased with the development of our 2008 acquisition APP Pharmaceuticals and expect the company to be accretive to Group EPS in 2010. The Group's EBIT margin for the first three quarters increased to 15%. We are on track to reach our mid-term 15% stretch EBIT margin target for the full year 2010."

Outlook for 2010 raised
Based on the Group's excellent financial results in the first three quarters, Fresenius now expects net income* to increase by ~20% in constant currency in 2010. Previously, the Company expected net income* to increase by 10% to 15% in constant currency. Sales in constant currency are now projected to increase by 8% to 9%. The previous guidance was 7% to 9% in constant currency.

The earnings outlook already includes expected one-time expenses of €18 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements outside of North America in 2010, of which €8 million are included in the third-quarter results.

The Group plans to invest ~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 sales growth
Group sales increased by 13% at actual rates and by 10% in constant currency to €11,821 million (Q1-3/2009: €10,429 million). Organic sales growth was 9%. Acquisitions contributed a further 1%. Currency translation had a positive effect of 3%.

Sales growth in the business segments was as follows.

In Europe, sales grew by 8% in constant currency, with organic sales growth contributing 7%. In North America, sales grew by 11% in constant currency. Organic sales growth was 10%. Organic growth rates in the emerging markets reached 11% in Latin America and 7% in Asia-Pacific. Organic sales growth in Asia-Pacific was impacted by the volatility of Fresenius Vamed's project business.



Excellent earnings growth
Group EBITDA increased by 17% at actual rates and by 13% in constant currency to €2,244 million (Q1-3/2009: €1,911 million). Group EBIT increased by 19% at actual rates and by 15% in constant currency to €1,776 million (Q1-3/2009: €1,496 million). The EBIT margin increased by 70 basis points to 15.0% (Q1-3/2009: 14.3%). All business segments contributed to the excellent earnings growth.

Group net interest improved to -€424 million (Q1-3/2009: -€439 million).

The other financial result was -€98 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€131 million and the Contingent Value Rights (CVR) of €33 million. Both are non-cash items.

The Group tax rate* was 32.2% (Q1-3/2009: 30.8%). The tax rate in the first three quarters of 2009 was influenced by a revaluation of a tax claim at Fresenius Medical Care.

Noncontrolling interest increased to €421 million (Q1-3/2009: €363 million), of which 94% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income** increased by 35% at actual rates and by 30% in constant currency to €495 million (Q1-3/2009: €368 million). Earnings per ordinary share increased to €3.06 and earnings per preference share to €3.07 (Q1-3/2009: ordinary share €2.28; preference share €2.29). This represents an increase of 34% for both share classes.

Net income*** (including special items) grew to €435 million, or €2.69 per ordinary share and €2.70 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 €494 million on property, plant and equipment (Q1-3/2009: €442 million). Acquisition spending was €223 million (Q1-3/2009: €186 million).

Strong cash flow
Operating cash flow increased by 20% to €1,346 million (Q1-3/2009: €1,120 million), mainly driven by strong earnings growth and tight working capital management. The cash flow margin improved to 11.4% (Q1-3/2009: 10.7%). Net capital expenditure was €491 million (Q1-3/2009: €446 million). Free cash flow before acquisitions and dividends improved by 27% to €855 million (Q1-3/2009: €674 million). Free cash flow after acquisitions and dividends* was €348 million (Q1-3/2009: €251 million).

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

Solid balance sheet structure
The Fresenius Group's total assets grew by 9% to €22,734 million (Dec. 31, 2009: €20,882 million). In constant currency, the increase was 5%. Current assets increased by 19% at actual rates and by 15% in constant currency to €6,392 million (Dec. 31, 2009: €5,363 million). Non-current assets grew by 5% at actual rates and by 1% in constant currency to €16,342 million (Dec. 31, 2009: €15,519 million).

Total shareholders' equity increased by 11% at actual rates to €8,521 million (Dec. 31, 2009: €7,652 million). In constant currency, total shareholders' equity grew by 6%. The equity ratio improved by 90 basis points to 37.5% (Dec. 31, 2009: 36.6%).

Group debt grew by 4% at actual rates to €8,615 million (Dec. 31, 2009: €8,299 million). In constant currency, Group debt remained close to the previous year's level. Net debt increased by 1% to €7,955 million (Dec. 31, 2009: €7,879 million). At constant currency, net debt was reduced by 3%.

Due to the strong earnings growth and cash flow development, the net debt/EBITDA ratio improved to 2.70 as of September 30, 2010 (Dec. 31, 2009: 3.01). For the net debt/EBITDA leverage calculation, net debt is translated at the currency spot rates as of September 30, whereas EBITDA is translated at the average exchange rates of the last twelve months. At identical exchange rates for net debt and EBITDA, the ratio was at 2.71. Within only two years, Fresenius has strongly improved its leverage ratio. In Q3 2008, immediately following the acquisition of APP Pharmaceuticals, the ratio was 3.7.

Number of employees increased
As of September 30, 2010, Fresenius employed 136,458 people (Dec. 31, 2009: 130,510). This is an increase of 5%.

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 €2.1 million with the trifunctional antibody Removab (catumaxomab) in the first three quarters of 2010. As of October 8, 2010, the French Ministry of Health has included Removab in the list of drugs authorized for hospital use. The listing ensures reimbursement of this innovative antibody indicated for the treatment of malignant ascites in hospitals.

In October, Removab was awarded with this year's Galenus von Pergamon Prize in the "Specialist Care" category. The prize honors research and innovative drug development in Germany.
In the first three quarters of 2010, Fresenius Biotech's EBIT was -€21 million (Q1-3/2009: -€32 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 September 30, 2010, Fresenius Medical Care was treating 210,191 patients in 2,716 dialysis clinics.

• Continued excellent sales and earnings growth - EBIT margin increased to 15.6%
• 2010 sales outlook fully confirmed - Earnings outlook improved

Fresenius Medical Care achieved sales growth of 8% to US$8,886 million (Q1-3/2009: US$8,212 million). Organic growth was 6% and acquisitions contributed 2%.

Sales in dialysis care increased by 10% at actual rates and by 9% in constant currency to US$6,716 million (Q1-3/2009: US$6,124 million). Dialysis product sales grew by 4% at actual rates and 3% in constant currency to US$2,170 million (Q1-3/2009: US$2,088 million).

In North America, sales increased by 8% to US$6,058 million (Q1-3/2009: US$5,600 million). Dialysis services revenue increased by 9% to US$5,441 million. Average revenue per treatment for U.S. clinics increased to US$359 in Q3 2010 compared to US$348 for the same quarter in 2009 and US$356 in Q2 2010. This development was principally attributable to reimbursement increases. Sales in dialysis products improved by 2% to US$617 million.

Sales outside North America ("International" segment) grew by 8% at actual rates and by 7% in constant currency to US$2,828 million (Q1-3/2009: US$2,612 million). Sales in dialysis care increased by 13% (12% in constant currency) to US$1,275 million. Dialysis product sales improved by 5% (4% in constant currency) to US$1,553 million.

EBIT increased by 10% to US$1,385 million (Q1-3/2009: US$1,265 million) resulting in an EBIT margin of 15.6% (Q1-3/2009: 15.4%).

In North America, EBIT margin increased to 16.7% (Q1-3/2009: 16.0%). Margin development was favorably influenced by an increase in revenue per treatment as well as the effect of economies of scale.

In the International segment, EBIT margin was 17.0% (Q1-3/2009: 17.5%). EBIT margin was impacted by the devaluation of the Venezuelan bolivar and related charges and by lower gross profit margins of acquired clinics in Europe and Asia-Pacific. It was positively influenced by the effect of economies of scale and favorable currency effects.

Net income* increased by 10% to US$707 million (Q1-3/2009: US$645 million).

On August 26, 2010, Fresenius Medical Care announced that it has signed an agreement to acquire Gambro's worldwide peritoneal dialysis business. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the homecare market, especially in Europe and Asia-Pacific. Completion of the acquisition is still subject to regulatory approvals by the relevant antitrust authorities as well as works council consultations in some jurisdictions.

Based on the strong operational performance in the first three quarters of 2010, Fresenius Medical Care improves its outlook for the full year 2010 and now expects net income1 to be between US$960 million and US$980 million. Previously, net income was expected in the range of US$950 million to US$980 million. Revenue is still expected to grow to more than US$12 billion.

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 is also a leading supplier of medical devices and transfusion technology products.

• Strong organic sales growth of 13% - EBIT margin increased to 20.5%
• Excellent development in all regions - Continued strong growth in North America in Q3
• 2010 outlook raised

Sales increased by 20% to €2,723 million (Q1-3/2009: €2,274 million). Organic sales growth was strong at 13%. Acquisitions contributed 1%. Currency translation had a positive effect of 6%. This was mainly attributable to the strengthening of the currencies in North America, Brazil and Australia against the euro.

In Europe, sales reached €1,264 million (Q1-3/2009: €1,159 million), driven by 6% organic growth. In North America, sales increased to €730 million (Q1-3/ 2009: €527 million). Organic sales growth was 31%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 12% to €436 million (Q1-3/2009: €361 million). Sales in Latin America and Africa increased to €293 million (Q1-3/2009: €227 million), organic sales growth was 10%.

EBIT grew by 26% to €557 million (Q1-3/2009: €441 million). The EBIT margin improved to 20.5% (Q1-3/2009: 19.4%). The EBIT increase was mainly driven by the excellent development in North America, where new product launches and strong demand due to drug shortages continued to have a positive effect. The EBIT includes €8 million for investments in efficiency improvements outside of North America.

Net interest improved to -€212 million (Q1-3/2009: -€231 million). Net income* increased by 68% to €228 million (Q1-3/2009: €136 million).

APP Pharmaceuticals (APP) achieved excellent sales growth of 35% to US$853 million (Q1-3/2009: US$632 million). Adjusted EBITDA** grew by 30% to US$339 million (Q1-3/2009: US$260 million). EBIT increased by 43% to US$284 million (Q1-3/2009: US$198 million). The EBIT margin improved to 33.3% (Q1-3/2009: 31.3%). 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 six, following four approvals in the first half of 2010. In addition, Fresenius Kabi Oncology received three approvals from the FDA in 2010.

Due to the strong results of APP Pharmaceuticals, Fresenius expects the acquisition to be accretive to Group earnings per share in 2010.

Operating cash flow of Fresenius Kabi increased by 22% to €378 million (Q1-3/2009: €311 million). The cash flow margin was 13.9% (Q1-3/2009: 13.7%). Cash flow before acquisitions and dividends grew by 21% to €272 million (Q1-3/2009: €224 million).

Based on the excellent development in North America, Fresenius Kabi raises its outlook for 2010 and forecasts organic sales growth of ~12%. Previously, organic sales growth was expected at the upper end of the announced 7% to 9% range. The EBIT margin is now projected to reach ~20%. Previously, an EBIT margin between 18.5% and 19% was projected. The guidance already includes expected one-time expenses of €18 million to €20 million pre-tax which Fresenius Kabi plans to invest in further efficiency improvements outside North America in 2010.

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.

• EBIT margin increases by 70 basis points to 9.3%
• 2010 sales outlook fully confirmed - EBIT outlook increased

Sales increased by 4% to €1,840 million (Q1-3/2009: €1,768 million). Organic growth was 5%. 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 13% to €172 million (Q1-3/2009: €152 million). The EBIT margin improved to 9.3% (Q1-3/2009: 8.6%). Net income* increased by 20% to €98 million (Q1-3/2009: €82 million).

Fresenius Helios fully confirms its sales outlook and raises its EBIT outlook for 2010. The company expects to achieve organic sales growth at the upper end of the targeted 3% to 5% range. EBIT is now projected to reach €230 million to €235 million. Previously, the company expected to reach the upper end of the announced €220 million to €230 million range.

*Net income attributable to HELIOS Kliniken GmbH.

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

• Excellent organic sales growth of 31% - Strong EBIT growth
• 2010 outlook increased

Sales increased by 32% to €517 million (Q1-3/2009: €393 million). Organic sales growth reached 31%. Sales in the project business rose by 44% to €351 million (Q1-3/2009: €244 million). Sales in the service business increased by 11% to €166 million (Q1-3/2009: €149 million).

EBIT increased to €24 million (Q1-3/2009: €15 million). The EBIT margin improved to 4.6% (Q1-3/2009: 3.8%). Net income* rose to €18 million (Q1-3/2009: €13 million).

The excellent development of order intake and order backlog continued. Order intake in the project business increased by 34% to €418 million (Q1-3/2009: €313 million). Fresenius Vamed received a turnkey contract for the construction of the general hospital in Bijeljina, Bosnia Herzegovina, with a total order volume of €36 million. Furthermore, the company will deliver medical technical equipment to China and Turkmenistan with a total order volume of €22 million. Order backlog increased by 8% to €736 million (Dec. 31, 2009: €679 million).

Fresenius Vamed increases its outlook for 2010 and expects to grow both sales and EBIT by more than 10%. Previously, the company expected 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 three quarters of 2010, a conference call will be held on November 2, 2010 at 2:00 p.m. CET (9:00 a.m. EDT). All investors are cordially invited to follow the conference call in a live broadcast over the Internet at www.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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Promising innovations from a variety of medical specialties will be on display Nov. 17-19 during the 11th Fresenius Inventors' Fair in conjunction with the Medica international trade fair and congress in Dusseldorf, Germany. The event is the first time the ideas of 22 specially selected researchers, developers and inventors will be shown to a broad audience. The top three entries will be honored with the Fresenius Inventors' Award, which includes prize money totaling €10,000. The winning entries are picked on Medica's opening day by a jury comprised of medical specialists and industry representatives. About 40 doctors, scientists, engineers, technicians and health care professionals are among the entrants this year. The competition covers a broad spectrum of innovations - from a device for detecting contagious diseases in a person's breath to a mobile EKG (electrocardiograph) to submersible training equipment for knee and hip joints. The Fresenius Inventors' Fair is held every two years during the Medica event.

The competition's previous winner is a good example of just how innovative the ideas are at the Fresenius Inventors' Fair: Dr. Nicole Kikillus, an engineer from Karlsruhe, Germany, developed a particularly reliable method for detecting atrial fibrillation, even if no atrial fibrillation occurs during a medical checkup. This enables an early diagnosis and reduces the risk of stroke. The second-place finisher – a fluorescent method to identify and perform a sentinel node biopsy in cancer patients – already is being used in clinics. Other innovations from previous competitions include a special pen for diagnosing and treating neurological illnesses such as Parkinson's disease, a needle that facilitates taking blood samples from newborns, an endoscope for nearly pain-free colonoscopies, a new procedure for manufacturing nitrate monoxide, and a mobile washing station for bedridden patients.

"Many promising medical inventions often go unnoticed, rather than benefitting as many patients as possible," said jury member Martin Hepper. "Fresenius wants to help researchers find companies to further develop or market their ideas. During the Inventor's Fair, they have the opportunity to present their innovations to a broad audience of specialists and industry contacts." As the experience of previous fair participants shows, many researchers have been successful in establishing instrumental liaisons with companies. Last year, Medica had more than 138,000 visitors from Germany and abroad.

The Fresenius Inventors' Fair will be held Nov. 17-19 in Hall 8b during the Medica international trade fair and congress in Dusseldorf, Germany. The award ceremony will begin at 2 p.m. on Wednesday, Nov. 17. Medica runs Nov. 17-20, 2010, from 10 a.m. to 6:30 p.m. (Saturday until 5 p.m.). Additional information on the Inventors' Fair is available at www.fresenius.com/inventorsfair; and about the MEDICA event at www.medica-tradefair.com.

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A jury of experts today presented the 2010 Fresenius Inventors' Award to a portable, capacitive-electrode-based electrocardiogram (EKG) system. Dr. Martin Oehler, an engineer from the Technische Universität of Braunschweig, Germany, won first place and €5,000 for his invention at the 11th Fresenius Inventors' Fair held in conjunction with the Medica international trade fair and congress in Dusseldorf, Germany. Second place and €3,000 were awarded to Jan-Marten Seitz, a mechanical engineer from the Institute of Materials Science at Gottfried Wilhelm Leibniz Universität in Hanover, Germany, who developed a process for the manufacture of bioresorbable magnesium stents (vessel wall supports). Physics Professor Werner Mäntele from the Institute for Biophysics at the Goethe University in Frankfurt am Main, Germany, was happy to receive the third prize and €2,000 for his device enabling the measurement of heparin concentration in blood by means of static diffusion of light.

The top prize-winning portable EKG system is equipped with over 29 capacitive sensors. These enable a high-resolution EKG measurement through clothing. The system can be applied directly over a patient's clothing and delivers an EKG signal within a few seconds. "Patients have to be disrobed in the case of conventional EKG measurements employing gel-based or dry electrodes, which causes delays. Furthermore, there is a risk of skin irritations as well as additional costs for consumable supplies in the use of adhesive electrodes," said award winner Oehler. "The capacitive EKG system we developed can save crucial time and is entirely reusable." An EKG records the electrical activity of coronary fibers. This information provides important parameters such as heart rate or cardiac rhythm, which render indications of heart conditions and coronary problems such as irregular heartbeat or a heart attack.

Seitz received the second prize for his process enabling the manufacture of bioresorbable magnesium stents. Stents are vessel wall supports which can be implanted in hollow organs in order to keep them fully open for example during paranasal sinus operations. Nonresorbable stents, for example made of silicon, are currently used for such applications. These either remain in the body, which can lead to complications for the patient, or subsequently must be removed, which can result in trauma and the formation of scar tissue. In contrast, the magnesium-alloy stents developed by Seitz are entirely bioresorbable, whereby their disintegration can be regulated by means of a special coating process.

The third-place device developed by Mäntele employs static diffusion of light to measure the concentration of heparin present in a patient's blood. Heparin is a medication to prevent the coagulation of blood. It is used, for example, during coronary surgery, in the course of hemodialysis treatments was well as in thrombosis prevention. Mäntele's apparatus measures the diffusion of light from nanoparticles formed within a blood plasma sample between heparin and the protamine peptide which counters the heparin's effectivity. Results are delivered within a matter of minutes and thus enable a precise control of blood coagulation both during and subsequent to an operation.

A total of 23 selected researchers and developers will be presenting their ideas until Nov. 19 during the Fresenius Inventors' Fair. A jury comprised of medical specialists and industry representatives chose the three prize winners from among the field of entries. The health care company sponsors the Fresenius Inventors' Fair to help researchers find professional business partners and industrial contacts as well as potential investors in order to further develop and market their ideas. Fresenius provides all the exhibiting entries display space and an exhibit booth at the fair free of charge, enabling them to present their developments to trade experts and media representatives from around the world. About 40 doctors, scientists, engineers, technicians and health care professionals were among the entrants this year. The Fresenius Inventors' Fair is held every two years during the Medica event. Last year, Medica had more than 138,000 visitors from Germany and abroad.

The Fresenius Inventors' Fair will be held Nov. 17-19 in Hall 8b during the Medica international trade fair and congress in Dusseldorf, Germany. Medica runs Nov. 17-20, 2010, from 10 a.m. to 6:30 p.m. (Saturday until 5 p.m.). Additional information on the Inventors' Fair is available at www.fresenius.com/inventorsfair; and about the Medica event at www.medica-tradefair.com.

Photographs of the award winners can be accessed online at http://tinyurl.com/erfinderpreis-2010.

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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, yesterday introduced the 2008T, a smart-platform dialysis system featuring Fresenius Clinical Data Exchange® (CDX) software, at the American Society of Nephrology's 43rd Annual Meeting and Scientific Exposition in Denver, Colorado. The groundbreaking technology is the first fully integrated dialysis therapy and management information system on the market and was developed to help physicians and clinic operators adjust to the new bundled payment environment due to take effect in the United States in January 2011. Available immediately, the 2008T currently is scheduled to be marketed in North America and is cleared for use in the USA and Canada by the U.S. Food and Drug Administration and Health Canada.

The 2008T combines the company's most advanced hemodialysis delivery system with Fresenius Clinical Data Exchange® (CDX) to provide caregivers, for the first time, chairside access to both dialysis treatment and medical information system (MIS) data to facilitate real-time adjustments to therapy and care plans. The platform accommodates MIS software from third-party vendors as well as the company's proprietary systems, providing immediate access to all dialysis treatment and clinical trending data traditionally held in multiple locations. This integrated approach streamlines workflow and maximizes data collection for comprehensive billing.

The 2008T was developed in close association with the Renal Research Institute, one of the pre-eminent research institutions in the United States focused on improving the clinical care and quality of life of patients with chronic kidney disease.

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Fresenius Medical Care AG & Co. KGaA ("FMC AG & Co. KGaA"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, and Galenica Ltd. ("Galenica") today announced the formation of a new renal pharmaceutical company (Vifor-Fresenius Medical Care Renal Pharma Ltd.) designed to develop and distribute on a worldwide basis products to treat iron deficiency anaemia and bone mineral metabolism for pre-dialysis and dialysis patients. The newly formed company extends existing agreements with Galenica.

Galenica will contribute to the company the intravenous (IV) iron products Venofer® (iron sucrose) and Ferinject® (ferric carboxymaltose) for use in the dialysis and pre-dialysis market (Chronic Kidney Disease, CKD stages III to V) on a worldwide basis. Commercialization of both IV iron products outside the field of CKD stages III to V will remain fully the responsibility of Galenica and its existing key partners.

Iron deficiency is the most common cause of anaemia. The market for intravenous iron products used in dialysis and pre-dialysis was approximately $1 billion in 2009. Venofer® and Ferinject® are market leaders of the global market for intravenous iron products.

Galenica will also contribute all rights for PA21, a novel iron-based phosphate binder exclusively to the new company on a worldwide basis while maintaining the recently announced agreement to develop and market this product in Japan with Kissei.

Phosphate binders are prescribed to patients generating high phosphate levels caused by the failure of their kidneys. In dialysis more than 80% of patients need phosphate binders. The phosphate binder market had a value of $1.5 billion in 2009. PA21, a non-calcium phosphate binder, is currently in preparation for phase III clinical studies and expected to be filed in the USA and Europe in 2012.

Fresenius Medical Care will hold a 45% share in the new company with headquarters in Switzerland. The transaction is subject to final anti-trust approval in certain regions.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "This investment allows Fresenius Medical Care to take the next major implementation step in its renal pharmaceutical strategy. With this agreement we are creating a leading worldwide renal pharmaceutical company which will align Fresenius Medical Care and Galenica more closely in developing innovative and effective pharmaceutical products for patients that suffer from chronic kidney disease."

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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 the finalization of the acquisition of Gambro's worldwide peritoneal dialysis (PD) business. This marks the successful completion of regulatory approvals by the relevant antitrust authorities.*

* Except Serbia as the approval by the relevant anti-trust authority is still preliminary.

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Fresenius today announced its intention to issue Senior Unsecured Notes through its subsidiary Fresenius U.S. Finance II, Inc., subject to market conditions. The offering will comprise separate euro and US dollar tranches. The Notes are expected to have a maturity of 6 years or more.

Proceeds of the Notes offering will be used to further repay the bridge loan used to finance the acquisition of APP Pharmaceuticals. This bridge loan currently amounts to US$ 650 million, half of the initial drawing of US$ 1,300 million in September 2008. The other components of the acquisition financing have already been successfully completed: Senior Secured Credit Facilities including US$ 2,500 million term loans and US$ 550 million revolving facilities, a € 289 million equity issue and a € 554 million Mandatory Exchangeable Bond.

The Notes are being offered in private placements and there will be no public offering of the Notes.

Fresenius confirms its outlook for 2008. Group sales were expected to grow by 9.5 to 10.5 % and net income by 10 to 15 %, both in constant currency. This outlook excludes the APP acquisition and related special items.

Fresenius also provides a preview on its expectations for 2009. Group organic sales growth is expected to be at least in the mid single-digit range. Net income growth in constant currency and before special items related to the APP acquisition is expected to be greater than organic sales growth. A detailed outlook will be provided as part of the 2008 earnings release expected to be issued on February 19, 2009.

For current information about the Fresenius Group, please see our website www.fresenius.com.

About Fresenius SE
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2007, group sales were approx. € 11.4 billion. On September 30, 2008 the Fresenius Group had 121,288 employees worldwide.

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Fresenius today announced that it has successfully raised US$ 800 million equivalent through an offering of unsecured Senior Notes by its subsidiary Fresenius U.S. Finance II, Inc. The Notes comprise separate euro and US dollar tranches. The euro tranche of € 275 million principal amount will be issued at a price of 93.024 % and will have a coupon of 8.75 %, resulting in a yield to maturity of 10.25 %. The US dollar tranche of US$ 500 million principal amount will be issued at a price of 93.076 % and will have a coupon of 9.00 %, resulting in a yield to maturity of 10.50 %. Both tranches will mature in 2015 and are non-callable.

The transaction was extremely well received by investors. Both tranches were substantially oversubscribed with a total order book in excess of US$ 5.0 billion.

Proceeds of the Notes offering will be used to replace the bridge loan used to finance the acquisition of APP Pharmaceuticals, to repay other debt and for general corporate purposes.

With this transaction the financing of the APP Pharmaceuticals acquisition is completed.

Standard & Poor's has assigned a BB rating to the Notes and Moody's assigned a provisional Ba1 rating. This is in line with Fresenius SE's existing unsecured Senior Notes and its corporate credit rating.

The Notes have been offered in private placements without a public offering.

The offering of the Notes is expected to be closed and settled on January 21, 2009 subject to customary closing conditions. It is planned that the Notes will be listed on the Luxembourg Stock Exchange.

For current information about the Fresenius Group, please see our website www.fresenius.com.

About Fresenius SE
Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2007, group sales were approx. € 11.4 billion. On September 30, 2008 the Fresenius Group had 121,288 employees worldwide.