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• Sales € 2.8 billion, +1 % at actual rates, +8 % in constant currency
• EBIT € 377 million, -1 % at actual rates, +7 % in constant currency
• Net income € 100 million, +8 % at actual rates, +13 % in constant currency

• Excellent growth in constant currency
• Currency impact based on translational effects
• Significant progress in generic I.V. drug strategy
• All business segments fully on track - Guidance for 2008 confirmed

Outlook for 2008 confirmed
Based on the Group's strong first quarter financial results Fresenius fully confirms its positive outlook for 2008: Group sales are expected to grow by 8 to 10 % in constant currency. Net income is expected to increase by 10 to 15 % in constant currency. All business segments are expected to contribute to this growth.


Sales growth of 8 % in constant currency
Group sales increased by 8 % in constant currency and by 1 % at actual rates to € 2,798 million (Q1 2007: € 2,767 million). Organic sales growth was 5 %. Acquisitions contributed a further 4 %. Divestitures reduced sales growth by 1 %. Currency translation had a negative impact of 7 %. This is mainly attributable to the average US dollar/Euro rate depreciating 14 % from Q1 2007.

Sales growth in the business segments was as follows:

In Europe sales grew by 13 % in constant currency with organic sales growth contributing 6 %. In North America sales grew by 1 % in constant currency. Organic growth was 2 %. Strong growth rates were achieved in the emerging markets with organic growth of 11 % in Asia-Pacific and 16 % in Latin America.

Excellent net income growth
Group EBITDA increased by 8 % in constant currency and by 1 % at actual rates to € 483 million (Q1 2007: € 479 million). Group operating income (EBIT) grew by 7 % in constant currency and decreased by 1 % at actual rates to € 377 million (Q1 2007: € 380 million). The Group's EBIT margin was 13.5 % (Q1 2007: 13.7 %).

Group net interest decreased to € -84 million (Q1 2007: € -95 million). This is mainly attributable to lower average interest rates at Fresenius Medical Care and currency translation effects.

The Group tax rate was 35.2 % (Q1 2007: 36.1 %).

Minority interest increased slightly to € 90 million (Q1 2007: € 89 million), of which 92 % was attributable to the minority interest in Fresenius Medical Care.

Group net income grew by 13 % in constant currency and by 8 % at actual rates to € 100 million (Q1 2007: € 93 million). Earnings per ordinary share and per preference share were € 0.64 (Q1 2007: ordinary share € 0.60, preference share € 0.60). This represents an increase of 7 % for both share classes.

Substantial investments in growth
Fresenius Group spent € 155 million for property, plant and equipment and intangible assets (Q1 2007: € 140 million). Acquisition spending was € 215 million (Q1 2007: € 155 million).

Sustainable cash flow development
Operating cash flow was € 278 million (Q1 2007: € 287 million). The cash flow margin was 9.9 % (Q1 2007: 10.4 %). Given increased net capital expenditure of € 162 million (Q1 2007: € 132 million), cash flow before acquisitions and dividends was € 116 million (Q1 2007: € 155 million). Free cash flow after net acquisitions (€ 158 million) and dividends (€ 5 million) was € -47 million (Q1 2007: € 88 million).

Solid balance sheet
Fresenius Group's total assets increased by 3 % in constant currency and decreased by 1 % at actual rates to € 15,149 million (December 31, 2007: € 15,324 million). Current assets increased by 4 % in constant currency and by 1 % at actual rates to € 4,319 million (December 31, 2007: € 4,291 million). Non-current assets were € 10,830 million (December 31, 2007: € 11,033 million).

Shareholders' equity including minority interest increased by 3 % in constant currency and decreased by 1 % at actual rates to € 5,988 million (December 31, 2007: € 6,059 million). The equity ratio (including minority interest) was 39.5 % (December 31, 2007: 39.5 %).

Group debt decreased by 2 % at actual rates to € 5,598 million (December 31, 2007: € 5,699 million). In constant currency, Group debt increased by 2 %. As of March 31, 2008, the net debt/EBITDA ratio was 2.6 (December 31, 2007: 2.6).

Number of employees increased
As of March 31, 2008, Fresenius increased the number of its employees by 2 % to 116,203 (December 31, 2007: 114,181). The growth was mainly attributable to Fresenius Kabi und Fresenius Medical Care.

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.

Studies with the antibodies Removab® and Rexomun® in various indications are ongoing in Europe and the US.

Fresenius Biotech's EBIT was € -9 million (Q1 2007: € -11 million). For 2008, Fresenius Biotech expects an EBIT of approximately € -50 million.



The 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 March 31, 2008, Fresenius Medical Care was treating 177,059 patients in 2,297 dialysis clinics.

Strong start into the year - in line with expectations
Outlook 2008 fully confirmed

Fresenius Medical Care achieved sales growth of 8 % to US$ 2,512 million (Q1 2007: US$ 2,321 million). Organic growth was 5 %. Currency translation effects had a positive impact of 4 %. Sales in dialysis care increased by 5 % to US$ 1,844 million (Q1 2007: US$ 1,760 million). In dialysis products, sales grew by 19 % to US$ 667 million (Q1 2007: US$ 560 million).

In North America sales increased by 2 % to US$ 1,668 million (Q1 2007: US$ 1,637 million). Dialysis services revenue increased by 1 % (3 % adjusted for the divestiture of the perfusion business in spring 2007) to US$ 1,495 million. Average revenue per treatment in the US was US$ 326 in the first quarter (Q4 2007: US$ 325), based on an increase in underlying reimbursement rates and an increase in EPO utilization. Sales outside North America ("International" segment) grew by 23 % (10 % in constant currency) to US$ 844 million (Q1 2007: US$ 684 million). Strong sales growth in constant currency was achieved in Europe (+11 %) and Latin America (+14 %).

EBIT rose by 7 % to US$ 389 million (Q1 2007: US$ 365 million) resulting in an EBIT margin of 15.5 % (Q1 2007: 15.7 %). This reflects the increased expenditures for corporate research and development activities and the expansion in the International dialysis services business. The EBIT margin in North America increased by 60 basis points to 16.4 %, supported by improved underlying reimbursement rates, dialysis services cost containment and a continued strong performance of renal products and PhosLo. In the International segment, the EBIT margin decreased by 60 basis points to 17.0 % mainly due to the growth in the dialysis care business through an increased number of De Novo clinics and associated start-up costs.

Net income increased by 16 % to US$ 186 million (Q1 2007: US$ 160 million).

For 2008, Fresenius Medical Care fully confirms its outlook and expects to achieve revenue of more than US$ 10.4 billion, an increase of more than 7 %. Net income is expected to be between US$ 805 million and US$ 825 million, an increase of 12 % to 15 %.

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


Fresenius Kabi

Fresenius Kabi offers infusion therapies and clinical nutrition for seriously and chronically ill patients in the hospital and out-patient environments. The company is also a leading provider of transfusion technology products.

Excellent sales growth of 15 % in constant currency
Outlook 2008 fully confirmed

Fresenius Kabi increased sales by 15 % in constant currency and by 13 % at actual rates to € 545 million (Q1 2007: € 483 million). Organic growth was excellent at 8 %. Net acquisitions contributed a further 7 % to sales. Currency translation effects had a negative impact of 2 %. This was mainly due to the depreciation of currencies in Great Britain, South Africa and China.

Organic sales growth in Europe (excluding Germany) was 6 %. In Germany organic sales growth was 1 %. In the Asia-Pacific region Fresenius Kabi again achieved significant organic sales growth of 28 %. Organic sales growth in Latin America was 10 % and in other regions 6 %.

EBIT grew by 13 % to € 87 million (Q1 2007: € 77 million). The EBIT margin was 16.0 % (Q1 2007: 15.9 %). Net income grew by 10 % to € 46 million (Q1 2007: € 42 million).
Fresenius Kabi fully confirms the outlook for 2008: The company targets sales growth in constant currency of 12 to 15 %. Organic growth is expected to contribute around 7 % to this target. Further, Fresenius Kabi forecasts an EBIT margin of around 16.5 %.

On April 20, 2008, Fresenius Kabi announced the acquisition of 73.3 % of the share capital of the Indian company Dabur Pharma Ltd. Dabur is a leading supplier of oncology generics. With this acquisition, Fresenius Kabi strengthens its position in I.V. drugs. Dabur achieved sales of more than € 41 million with generic oncology drugs and APIs in fiscal year 2006/2007 (April 1, 2006 to March 31, 2007).


Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 60 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats about 500,000 inpatients per year at its clinics and has a total of approximately 17,400 beds.

Positive financial performance of established clinics; Krefeld and Hüls with expected negative earnings contribution
Outlook 2008 fully confirmed

Fresenius Helios increased sales by 16 % to € 509 million (Q1 2007: € 439 million). Acquisitions contributed 11 % to overall sales growth. Organic growth was 4 %.

EBIT grew strongly by 19 % to € 38 million (Q1 2007: € 32 million) due to the very good financial performance of the established clinics. The first-time consolidation of HELIOS Klinikum Krefeld and the HELIOS Klinik Hüls had the expected negative impact on earnings. Nevertheless, the EBIT margin increased to 7.5 % (Q1 2007: 7.3 %). Net income improved by 36 % to € 15 million (Q1 2007: € 11 million).

Sales at the established clinics rose by 4 % to € 461 million. EBIT improved by 31 % to € 42 million. The EBIT margin was 9.1 % (Q1 2007: 7.3 %). The acquired clinics (consolidation < 1 year) achieved sales of € 48 million and an EBIT of € -4 million.

Fresenius Helios fully confirms its outlook for 2008: The company expects to achieve sales of more than € 2,050 million. EBIT is projected to increase to € 160 to 170 million, including the negative contribution of the clinics in Krefeld and Hüls.


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

Sales and earnings performance fully in line with expectations
Outlook 2008 fully confirmed

In the first quarter of 2008, Fresenius Vamed achieved sales growth of 1 % to € 74 million (Q1 2007: € 73 million). The project business generated sales of € 35 million (Q1 2007: € 37 million), sales in the service business were € 39 million (Q1 2007: € 36 million).

EBIT was € 4 million (Q1 2007: € 5 million). The EBIT margin was 5.4 % (Q1 2007: 6.8 %). Net income was € 4 million (Q1 2007: € 4 million).

Order intake in the project business grew strongly by 89 % to € 125 million (Q1 2007: € 66 million). This was driven by obtaining the order for the planning and construction of the Tauern Spa World in Kaprun/Austria of about € 80 million. Fresenius Vamed will be also responsible for the operational management of Tauern Spa World following the completion of the project. Order backlog as of March 31, 2008 reached a new all-time high of € 595 million, an increase of 17 % (December 31, 2007: € 510 million).

Fresenius Vamed fully confirms its outlook for 2008 and expects to grow both sales and EBIT by 5 to 10 %.


Analyst Conference Call and Audio Webcast
As part of the publication of the results for the first quarter of 2008, a conference call will be held on April 30, 2008 at 2.00 p.m. CEDT (8.00 a.m. EDT). You 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 recording will be available.

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Following an excellent year in 2007 and a strong first quarter, Fresenius Medical Care's Chief Executive Officer Ben Lipps today confirmed the outlook for the remainder of 2008. At the Annual General Meeting in Frankfurt, he said the Company expects to achieve revenues of more than $10.4 billion and earnings after tax between $805 and $825 million. Based on the strong revenue development and the Company's growth opportunities, Fresenius Medical Care also expects to meet its long-term target of more than $11.5 billion in revenues by 2010, and sustainable growth in earnings after tax in the low- to mid-teens per year.

"In 2007 we continued to expand our global presence," Ben Lipps said. "We invested in our production facilities in the United States and Germany, and acquired a production plant in China to meet the growing demand for our renal products. In Germany, we created more than 450 jobs in 2007 and the first quarter of 2008, primarily at our production sites in Schweinfurt and St. Wendel. The number of employees in Germany increased by about 16%. Within the next two years, we expect to increase our dialyzer production capacity from 75 million in 2007 to more than 90 million," Ben Lipps stated.

The new 5008S dialysis machine, which was introduced recently at the EDTA nephrological congress in Stockholm (Sweden), should also contribute to continued growth. The 5008S has been tested extensively around the world, and maintains the essential features of the 5008 system. The 5008S is designed to make online hemodiafiltration – currently the most advanced therapy – available to an increasing number of patients in selected markets.

During the Annual General Meeting, the shareholders approved the eleventh consecutive dividend increase with a large majority of 99.96%. The dividend will increase to €0.54 from €0.47 per ordinary share and to €0.56 from €0.49 per preference share. The previous year's dividend was adjusted to the share split.

In addition, shareholders affirmed the actions and decisions taken by the Supervisory Board and the Management Board in 2007 with a majority of more than 99%.

At the Annual General Meeting, 72.06% of the ordinary share capital and 2.48% of the preference share capital were represented. Only ordinary shareholders were entitled to vote.

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Moody's has raised the corporate credit rating of Fresenius SE from Ba2 to Ba1. The ratings of the Senior Notes issued by the company's wholly-owned subsidiary Fresenius Finance B.V. also improved. The € 100 million Senior Notes due 2009 with a coupon of 7.5 %, the € 500 million Senior Notes due 2013 with a coupon of 5.0 % and the € 500 million Senior Notes due 2016 with a coupon of 5.5 % have been upgraded to Ba1 as well.

Moody's has also upgraded the corporate credit rating of Fresenius Medical Care AG & Co. KGaA from Ba2 to Ba1 and has raised the ratings of its debt.

A stable outlook has been assigned to all ratings.

Moody's has based the upgrade on the continuous improvements in the operating performance of both companies, evidenced by increased levels of profitability and cash flow generation driving a reduction of financial leverage.

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The ratings of Fresenius Medical Care debt instruments have also been advanced. The Senior Secured Debt under the $4.6 billion Credit Agreement of Fresenius Medical Care AG & Co. KGaA received a Baa3 Investment Grade Rating. The rating of the Unsecured $500 million Senior Notes 2007-2017 issued by FMC Finance III S.A. with a coupon of 6 7/8% has been improved from Ba3 to Ba2. The ratings of the $225 million Senior Subordinated Notes of Fresenius Medical Care Capital Trust IV with a coupon of 7 7/8% and the €300 million Senior Subordinated Notes of Fresenius Medical Care Capital Trust V with a coupon of 7 3/8% were raised from B1 to Ba3.

A stable outlook has been assigned to all ratings.

Lawrence A. Rosen, Chief Financial Officer, commented: "With this upgrade Fresenius Medical Care is back to the rating level before the 100% debt-financed acquisition of Renal Care Group took place two years ago. The upgrade is the result of the Company's financial discipline and our proven ability to reduce leverage significantly over time. It also reflects our position as the leader in the dialysis industry, our good cost control and operating efficiency improvements as well as our continued strong cash flow generation."

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Following the Company's record financial results in 2007, Fresenius continues to expect strong sales and earnings growth in 2008. At the Annual General Meeting in Frankfurt Fresenius' Chairman of the Management Board Dr. Ulf M. Schneider confirmed the positive outlook for the full year 2008. Fresenius expects Group sales to increase by 8 to 10% in constant currency. Net income is expected to increase by 10 to 15% in constant currency. "Our growth prospects and strategic opportunities are excellent. The strong demand for high-quality healthcare drives sustainable organic growth. Selective acquisitions will further support our international business expansion. We are well positioned to take advantage of the opportunities in the fast-growing healthcare market," Schneider said.

During the Annual General Meeting, Fresenius shareholders approved the 15th consecutive dividend increase with a majority of more than 99%. Holders of ordinary shares will receive € 0.66 per share (2006: € 0.57) and holders of preference shares will receive € 0.67 (2006: € 0.58). This is an increase of about 15%. The total dividend distribution is € 103.2 million (2006: € 88.8 million).

Shareholders also elected a new supervisory board. Strategy Consultant Prof. Dr. h.c. Roland Berger and Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank AG, will join the twelve-member board.


89.72 percent of the ordinary share capital and 59.17 percent of the preference share capital was represented at Fresenius SE's Annual General Meeting. A broad majority of more than 99 percent approved the actions of the Management and Supervisory Boards in 2007.

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The path from a brilliant idea to a market-ready product is often long and arduous. Fresenius wants to help inventors along this path to support the spread of innovative concepts from all areas of medicine. The health care group is now announcing the 10th Fresenius Inventors' Fair. Creative types can present their ideas from November 19 to 21, 2008 as part of MEDICA, the world's largest medical trade fair in Dusseldorf. The Inventors' Fair offers an international forum for innovators to find professional partners from the private sector as well as potential investors for the further development and marketing of their ideas. On the first day of the trade fair, the three best inventions are awarded the Fresenius Inventors' Prize, worth 10,000 Euro in total. Applications are currently being accepted.

There are plenty of new developments in diagnostics and therapies as well as medical devices, care and rehabilitation. But for the most possible patients to benefit from these innovations, inventors often need a healthy dose of perseverance and additional expertise. The Fresenius Inventors' Fair offers innovators an opportunity to present their concepts to experts and the media, and to secure specialist and financial support from interested companies. This increases the chance that their idea could enter mass production and benefit from professional marketing.

An independent jury of medical and business specialists will select the three best innovations. Emphasis is placed on the potential benefits and novelty of an idea. "Feasibility is also a key trait of winning innovations," explains Martin Hepper, doctor and member of the 2006 Inventors' Prize jury. One such successful entry came from Orthopedic doctor Michael Arnold: he developed two orthopedic surgical instruments that allow a relatively gentle removal of worn prostheses, regardless of the original model or manufacturer.

Doctors, natural scientists, engineers as well as hospital and care professionals may now submit their ideas. Fresenius will provide select applicants with exhibition space and stands free of charge at the Inventors' Fair. The health care group has again invested in the professional design of the stands. This should allow exhibitors to showcase their innovations while stimulating interesting discussions with specialists and media representatives. Twenty exhibitors took part in the 2006 Inventors' Fair and numerous specialists from a variety of medical specialists entered the competition.

The deadline for applications is October 2, 2008. The Inventors' Fair will be in Hall 8b during MEDICA. The trade fair in Dusseldorf runs from November 19 to 21, 2008 and is open from 10 a.m. to 6:30 p.m. Additional information on the Inventors' Fair may be found at http://www.fresenius-erfindermesse.de/, and on MEDICA at http://www.medica.de. Contact: Fresenius SE, codeword: "Inventors' Fair", 61346 Bad Homburg, Germany, Fax: 0049-61 72-6 08 22 94, E-Mail: daniela.hegemann@fresenius.com.

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Fresenius Kabi, a business segment of the health care group Fresenius, has signed definitive agreements to acquire APP Pharmaceuticals, Inc. APP is a leading manufacturer of intravenously administered generic drugs (I.V. generics) in North America. The company is listed on the NASDAQ Stock Market.

APP shareholders will receive a Cash Purchase Price of US$ 23.00 per share and a registered and tradeable Contingent Value Right (CVR) that could deliver up to US$ 6.00 per share, payable in 2011, if APP exceeds a cumulative adjusted EBITDA target for 2008 to 2010.

Based on the Cash Purchase Price, the transaction values the fully diluted equity capital of APP at approximately US$ 3.7 billion. Fresenius expects the acquisition to be neutral to EPS in the first year and clearly accretive from the second year onwards.

The acquisition is an important step in Fresenius Kabi's growth strategy. Through the acquisition of APP, Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics market. This North American platform provides further attractive growth opportunities for Fresenius Kabi's existing product portfolio.

APP focuses on I.V. generics for hospital use and distributes its products in the U.S. and Canada. The company employs around 1,400 people and has state-of-the-art production facilities in Illinois, New York and Puerto Rico as well as a subsidiary in Toronto, Canada.

With a portfolio of more than 100 products, comprising drugs for oncology, intensive care, anaesthesia, analgesia as well as drugs for the treatment of infections, APP holds an important position in the North American hospital market. The company has a strong drug registration pipeline covering all of its product segments.

In 2007, APP achieved sales of US$ 647 million and an adjusted EBITDA of US$ 253 million. The company's latest published guidance for 2008 forcasts sales in a range of US$ 730 million to US$ 750 million and an adjusted EBITDA in a range of US$ 285 million to US$ 300 million.

As part of this transaction APP will merge with a U.S. subsidiary of Fresenius Kabi. The definitive agreements include a written consent and voting agreement with Dr. Patrick Soon-Shiong, APP's founder and shareholder of over 80 % of the outstanding stock. The transaction has been approved by APP's Board of Directors.

Following the closing of the transaction, Patrick Soon-Shiong will serve as a non-executive director on the Board of Fresenius Kabi's U.S. Holding company. In this role, he will continue to contribute to the company's strategic development.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE commented: "APP is a fast-growing, highly profitable company and a strong management team that has an excellent market position in the U.S. Our firm very much shares APP's dedication to quality and medical excellence for the benefit of patients. The acquisition provides significant growth opportunities for Fresenius Kabi. With the APP platform, Fresenius Kabi will be able to market its product range in the U.S. Fresenius Kabi's international marketing and sales network will allow us to sell APP's products globally. We welcome APP employees to our team and very much look forward to serving the North American healthcare community."

Patrick Soon-Shiong said: "We are proud to have consistently provided injectable pharmaceutical products of the highest quality to patients in the acute care setting over the past decade. In Fresenius we have found a partner with the same commitment to quality and dedication to patient care. The combined company will allow for the rapid globalization of APP's portfolio with the same high levels of quality and patient commitment for which we have become known, while at the same time providing a more comprehensive and complementary offering of injectable pharmaceuticals, devices and delivery systems to customers worldwide."

It is planned to finance the acquisition with a mix of debt and equity, targeted to minimize the impact on Fresenius SE's credit ratings. However, given Fresenius' rapid progress in de-levering since 2006, the largest portion of the financing will consist of debt instruments.

Financing commitments for the total amount have been received from Deutsche Bank, Credit Suisse and JP Morgan. Details of the financing plan will be published in the coming weeks. Deutsche Bank acts as Global Coordinator of the financing and as sole M&A advisor to Fresenius.

The transaction is subject to certain closing conditions, including regulatory approvals, and approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Fresenius anticipates closing the transaction at the end of 2008 or beginning of 2009.

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Fresenius Medical Care AG & Co. KGaA, the world's largest provider of dialysis products and services, today announced that it signed exclusive license agreements for the intravenous (IV) Iron products Venofer® (iron sucrose) and Ferinject® (ferric carboxymaltose) to treat iron deficiency anemia experienced by dialysis patients. Venofer® is the leading IV Iron product worldwide.

Galenica Ltd., its subsidiary Vifor Pharma and Fresenius Medical Care are entering into a strategic joint venture for dialysis to market and distribute the two iron products Venofer® and Ferinject® in Europe, Middle East, Africa and Latin America. The agreement concerns all commercialization activities for these IV Iron products in the field of dialysis and is expected to become effective not later than January 1st, 2009.

Commercialization of these respective IV Iron products outside the field of dialysis will remain fully the responsibility of Vifor Pharma and its existing key partners.

The total market for IV Iron in Europe, Middle East, Africa and Latin America was greater than $120 million in 2007. After the first year of the agreement, Fresenius Medical Care expects yearly sales from both IV Iron products to be in excess of $50 million.
In North America, a second Agreement provides for an exclusive U.S. manufacturing and distribution sublicense for Venofer® with Luitpold Pharmaceuticals Inc (Luitpold). In addition, it includes a similar sublicense for the next generation of iron products for the U.S. and Canada known as Injectafer® (ferric carboxymaltose) injection, which is expected to enhance the treatment of anemia in the dialysis patient population through the application of innovative drug administration techniques. The transaction is subject to customary closing conditions including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Act. The closing of the transaction is anticipated in 2008.

Luitpold will continue to sell Venofer® for use in treating chronic kidney disease patients not yet on dialysis and in treating patients with acute renal failure in hospitals. Venofer® is currently the market leader in sales in the injectable iron market in the U.S. Currently, the total purchases of IV Iron in the U.S are approximately US$ 500 million. Venofer® has a U.S. market share of approximately 55%. Galenica Ltd., through its Vifor Pharma subsidiary, exclusively licenses the Venofer® and Injectafer® products to Luitpold and American Regent for the U.S. and Canada.

As part of the 10-year Agreement for North America, Luitpold will continue to contract manufacture the products for Fresenius Medical Care. Luitpold will continue to pay royalties to Vifor Pharma, based in St. Gallen, Switzerland, which supplies the active pharmaceutical ingredient to Luitpold.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are very pleased to have Galenica Ltd., Vifor Pharma, Luitpold Pharmaceuticals, Inc. and American Regent, Inc., as our partners dedicated to improving the treatment of iron deficiency anemia experienced by dialysis patients. It is an excellent opportunity for us to access a proven and effective IV Iron product portfolio. With these agreements we will also deploy our "Pharmatech" strategy, aimed to introduce new drug delivery systems to improve quality and safety of dialysis treatments."

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Fresenius SE today successfully priced an issue of mandatory exchangeable bonds with an aggregate nominal amount of € 554.4 million. The bonds will be issued by Fresenius Finance (Jersey) Ltd. Upon redemption the bonds will be mandatorily exchangeable into ordinary shares of Fresenius Medical Care AG & Co. KGaA.

The bonds have a maturity of 3 years. Upon maturity, a maximum of 16.80 million and a minimum of 14.24 million shares will be deliverable, representing approximately 5.66 % and 4.80 %, respectively, of Fresenius Medical Care's total subscribed capital.

The bonds carry a coupon of 5 ⅝ % p.a. The minimum exchange price equals the reference share price of € 33.00 and the maximum exchange price has been set 18 % above the reference share price. This structure allows Fresenius SE to participate in a potential upside of Fresenius Medical Care shares up to the maximum exchange price of € 38.94.

Settlement of the bonds is expected on August 14, 2008. Settlement of the mandatory exchangeable bonds subscribed by Dr. Patrick Soon-Shiong, founder and majority shareholder of APP Pharmaceuticals is subject to the closing of Fresenius Kabi's acquisition of APP Pharmaceuticals. Fresenius intends to list the bonds in the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange. However, the issue is not conditional upon obtaining listing.

Credit Suisse, Deutsche Bank, Dresdner Kleinwort and JPMorgan acted as Joint Bookrunners for the offering.

Concurrent with the issuance of the bonds a bookbuilding for an accelerated secondary equity offering of Fresenius Medical Care shares has been carried out by Credit Suisse and Deutsche Bank, without a direct involvement of Fresenius SE. The concurrent equity offering is common market practice in order to coordinate potential selling interest in Fresenius Medical Care shares. The shares were placed at a price of € 33.00 per share.

Supplemental information to the Bond:
Issuer: Fresenius Finance (Jersey) Ltd
Shares: Fresenius Medical Care AG & Co. KGaA
ISIN: DE0005785802
WKN: 578580
Listed: Regulated Market / Prime Standard of the Frankfurt Stock Exchange; New York Stock Exchange (NYSE)

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The Management Board of Fresenius SE resolved today, with the consent of the Supervisory Board, to issue mandatory exchangeable bonds with a nominal amount of up to € 600 million. The bonds will be issued by Fresenius Finance (Jersey) Ltd. Upon redemption the bonds will be mandatorily exchangeable into ordinary shares of Fresenius Medical Care AG & Co. KGaA.

The bonds will be offered in a private placement solely to institutional investors outside the United States, Canada, Australia and Japan. There will be no public offering of the bonds.

Fresenius Medical Care is the world's largest provider of dialysis products and services and Fresenius' largest business segment. Fresenius SE currently owns approximately 36 % of both the ordinary voting shares and of the total subscribed capital of Fresenius Medical Care. Fresenius SE continues to view Fresenius Medical Care as a core business segment within the Fresenius Group.

The net proceeds from the issuance will be used to contribute to the funding of the previously announced acquisition of APP Pharmaceuticals, Inc. The acquisition is an important step in the growth strategy of Fresenius Kabi, a business segment of Fresenius SE. Through the acquisition of APP Pharmaceuticals Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics market. This North American platform provides further attractive growth opportunities for Fresenius Kabi's existing product portfolio.

At the time of issuance, up to 17 million ordinary shares of Fresenius Medical Care are underlying the bonds. At redemption, even after delivery of the underlying Fresenius Medical Care shares, Fresenius SE will still hold more than 30 % of Fresenius Medical Care's voting stock.

The bonds have a maturity of 3 years and will be issued at 100 % of the principal amount. The coupon is expected to be in a range from 5 ⅛ % to 5 ⅝ % p.a. The minimum exchange price equals the reference share price and the maximum exchange price is expected to be set between 118 % and 122 % of the reference share price. This structure allows Fresenius SE to participate in a potential upside of Fresenius Medical Care shares.

The bonds' reference price corresponds to the placement price determined by a bookbuilding for an accelerated secondary equity offering of Fresenius Medical Care shares. This placement will be executed by Credit Suisse and Deutsche Bank concurrent with the issuance of the bonds, without direct involvement of Fresenius SE, however. In line with common market practice, the placement will coordinate potential selling interest in Fresenius Medical Care common shares resulting from the issuance of the bonds.

Settlement of the bonds is expected on August 14, 2008. Fresenius intends to list the bonds in the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange. However, the issue is not conditional upon obtaining listing.

Dr. Patrick Soon-Shiong, founder and majority shareholder of APP Pharmaceuticals, has committed to buy mandatory exchangeable bonds in the amount of € 100 million in this transaction. The mandatory exchangeable bonds subscribed by Dr. Soon-Shiong will have identical terms as the other bonds, with settlement subject to the closing of Fresenius Kabi's acquisition of APP Pharmaceuticals.

Credit Suisse, Deutsche Bank, Dresdner Kleinwort and JPMorgan are acting as Joint Bookrunners for the offering.

The issuance of the mandatory exchangeable bonds is the first component of the long-term financing of the acquisition of APP Pharmaceuticals. Within the next 12 months, Fresenius may complement it with a capital increase of up to € 300 million. Any residual financing requirement will consist of debt instruments.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE commented: "Fresenius Medical Care will continue to be a core business of the Fresenius Group and a strong earnings contributor based on its excellent growth profile. With the mandatory exchangeable bonds we will participate in any increase of Fresenius Medical Care's value over the next three years. At the same time, we strengthen our business segment Fresenius Kabi with the acquisition of APP Pharmaceuticals and enhance the financial results of our Group. We do not anticipate a further reduction of our holdings in Fresenius Medical Care."

Supplemental information to the Bond:

Issuer: Fresenius Finance (Jersey) Ltd
Shares: Fresenius Medical Care AG & Co. KGaA
ISIN: DE0005785802
WKN: 578580
Listed: Regulated Market / Prime Standard of the Frankfurt Stock Exchange; New York Stock Exchange (NYSE)