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Fresenius Kabi, a business segment of Fresenius SE, has completed the acquisition of APP Pharmaceuticals, Inc.

The acquisition is an important step in Fresenius Kabi's growth strategy. Through APP, Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics industry.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE, said: "We are pleased to be able to complete this major transaction in a very short time. Now we are focused on successfully integrating APP and further developing the business. Fresenius and APP share a deep commitment to highest-quality products and medical excellence."

The closing follows completion of the U.S. Federal Trade Commission's (FTC) review of the acquisition. The FTC granted early termination of the waiting period under the Hart-Scott-Rodino Act without conditions. Earlier, German antitrust authorities had also approved the transaction.

Fresenius Kabi had announced the agreement to acquire Schaumburg, Illinois-based APP Pharmaceuticals, Inc., on July 7, 2008.

Fresenius Group expects to consolidate APP Pharmaceuticals in its financial statements as of September 1, 2008.

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

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Fresenius Medical Care AG & Co. KGaA, the world's largest provider of dialysis products and services, today announced the closing of an exclusive license agreement with Luitpold Pharmaceuticals, Inc., and its subsidiary American Regent, Inc. for the manufacture and distribution of intravenous (I.V.) iron products in the USA.

The closing follows completion of the US Federal Trade Commission's (FTC) review of the license agreement under the Hart-Scott-Rodino Act and the issuance of a consent order to permit the closing.

In July 2008, Fresenius Medical Care entered into a separate and independent license and distribution agreement with Galenica Ltd. and its subsidiary Vifor Pharma, for certain countries in Europe and the Middle East, to market and distribute intravenous Iron products, such as Venofer® and Ferinject® for dialysis treatment.

In the U.S., the license agreement among Fresenius USA Manufacturing, Inc. (FUSA), Luitpold Pharmaceuticals Inc., and American Regent, Inc. provides FUSA with exclusive rights to manufacture and distribute Venofer® to freestanding (non-hospital based) US dialysis facilities. Luitpold Pharmaceuticals will continue to sell Venofer® for use in treating chronic kidney disease patients not yet on dialysis and in treating patients with renal failure in hospitals.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased to be able to complete this agreement which strengthens our ability to improve the treatment of Iron Deficiency Anemia experienced by dialysis patients. We are delighted to have Galenica Ltd., Vifor Pharma, Luitpold Pharmaceuticals, Inc. and American Regent, Inc., as partners. The license to make and distribute these products is an important milestone in the execution of Fresenius Medical Care's renal pharma strategy."

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After successfully raising more than US$ 1,300 million from the issuance of mandatory exchangeable bonds and new shares in July and August, Fresenius has met strong reception in the general syndication phase of its Senior Secured Credit Facilities used to finance the acquisition of APP Pharmaceuticals, Inc.

Given strong demand from institutional investors, resulting in substantial oversubscription, Fresenius has increased the Facilities by US$ 500 million to US$ 2,950 million.

Prior to general syndication, the Facilities consisted of revolving credit facilities of US$ 450 million with a maturity of 5 years, a US$ 1,000 million Term Loan A with a maturity of 5 years and a US$ 1,000 million Term Loan B with a maturity of 6 years. The Term Loan B has now been increased to US$ 1,500 million.

Standard & Poor's today announced that the ratings of Fresenius SE and its various debt instruments remain unchanged following the US$ 500 million increase of the Facilities.


The additional funds will be used to reduce the US$ 1,300 million bridge credit facility which was drawn at the closing of the APP Pharmaceuticals acquisition in early September, to US$ 800 million. The bridge credit facility has a maturity of up to 7 years.

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

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Summary Third Quarter 2008:

Summary First Nine Months 2008:

Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today announced its results for the third quarter and first nine months of 2008.


Third Quarter 2008:

Revenue

Net revenue for the third quarter of 2008 increased by 12% to $2,713 million (9% at constant currency) compared to the third quarter of 2007. Organic revenue growth worldwide was 8%. Dialysis Services revenue grew by 10% to $1,985 million (9% at constant currency) in the third quarter of 2008. Dialysis Product revenue increased by 16% to $728 million (11% at constant currency) in the same period.

North America revenue increased by 7% to $1,771 million. Organic revenue growth was 5%. Dialysis Services revenue grew by 6% to $1,587 million. Average revenue per treatment for the U.S. clinics increased to $333 in the third quarter of 2008. This represents an increase of $6 per treatment compared to the third quarter of 2007 as well as sequentially from the second quarter of 2008. The improvement in the revenue per treatment was primarily due to increased commercial revenue rates. Dialysis Product revenue increased by 11% to $184 million. This performance was led by strong sales across almost the entire product portfolio.

International revenue was $942 million, an increase of 23% (14% at constant currency) compared to the third quarter of 2007. Organic revenue growth in the International segment was 13%. Dialysis Services revenue reached $398 million, an increase of 30% (20% at constant currency). Dialysis Product revenue rose 19% to $544 million (11% at constant currency), led by strong dialyzer and dialysis machine sales.


Earnings

Operating income (EBIT) increased by 6% to $422 million compared to $397 million in the third quarter of 2007, resulting in an operating margin of 15.6% compared to 16.4% for the third quarter 2007. This margin decrease mainly reflected higher personnel expenses, increased costs for the anticoagulant drug Heparin, a mix effect with accelerated growth in the International Service business, start-up costs of new clinics and higher expenditures for our research and development activities. Further, we experienced higher depreciation expenses as a result of our recent investments to expand our production capacities to continue to meet customer demand. The availability of these new capacities allowed a more normalized summer shutdown program for maintenance of our European facilities, in contrast to last year's shortened program. The exceptional revenue growth was supported by increased reimbursement rates and a continued above market growth of renal products.

Net interest expense for the third quarter of 2008 was $87 million compared to $95 million in the same quarter of 2007. This positive development was mainly attributable to lower average interest rates associated with changes in the financing structure due to the redemption of a portion of the Trust Preferred Securities.

Income tax expense was $123 million for the third quarter of 2008 compared to $115 million in the third quarter of 2007, reflecting effective tax rates of 36.6% and 38.0%, respectively. The decrease is mainly a result of German tax reform which became effective January 1, 2008.

Net income for the third quarter 2008 was $206 million, an increase of 14%.

Earnings per share (EPS) for the third quarter of 2008 rose 14% to $0.69 per ordinary share compared to $0.61 for the third quarter of 2007. Earnings per ordinary American Depository Share (ADS) are equivalent as one ADS represents one share as a result of the change in ratio of the Company's ordinary shares and preference shares to ADSs. The weighted average number of shares outstanding for the third quarter of 2008 was approximately 297.2 million shares compared to 295.8 million shares for the third quarter of 2007. The increase in shares outstanding is due to stock option exercises in the fourth quarter of 2007 and in the first nine months of 2008.


Cash Flow

In the third quarter of 2008, the Company generated a very strong $315 million in cash from operations, representing 12% of revenue. The cash flow generation was impacted by our strong operating income combined with a slight increase in working capital.

A total of $160 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $155 million. A total of $39 million in cash was used for acquisitions, net of divestitures.


Nine Months Ended September 30, 2008:

Revenue and Earnings

Net revenue was $7,890 million, up 10% from the first nine months of 2007. In constant currency net revenue rose 7%. Organic growth was 7% in the first nine months of 2008.

Operating income (EBIT) increased by 8% to $1,240 million compared to $1,152 million in the first nine months of 2007, resulting in an operating margin of 15.7% compared to 16.1% for the first nine months of 2007. This development mainly reflected higher research and development expenses and start-up costs for new clinics. Reduced reimbursement rates for EPO, lower utilization levels of EPO as well as increased costs for the anticoagulant drug Heparin and higher personnel expenses were partially offset by increases in underlying reimbursement rates and strong contributions from renal products.

Net interest expense for the first nine months of 2008 was $252 million compared to $281 million in the same period of 2007. The reduction was mainly due to lower average interest rates associated with changes in our financing structure.

Income tax expense was $366 million in the first nine months of 2008 compared to $331 million in the same period in 2007, reflecting tax rates of 37.0% and 38.0%, respectively.

For the first nine months of 2008, net income was $603 million, an increase of 16% from the first nine months of 2007.

Earnings per ordinary share rose 16% to $2.03. The weighted average number of shares outstanding during the first nine months of 2008 was approximately 296.8 million.


Cash Flow

Cash from operations during the first nine months of 2008 was $716 million, representing 9% of revenue. Cash Flow generation was impacted by our strong operating income, partially offset by slight increases in the Days Sales Outstanding (DSO) and other working capital.

A total of $493 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first nine months of 2008 was $223 million. A total of $130 million in cash was used for acquisitions, net of divestitures.

Please refer to the attachments for a complete overview on the third quarter and first nine months of 2008.


Patients – Clinics – Treatments

As of September 30, 2008, Fresenius Medical Care treated 181,937 patients worldwide, which represents a 6% increase compared to last year. North America provided dialysis treatments for 125,356 patients, an increase of 4%. Including 34 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 127,172. The International segment served 56,581 patients, an increase of 10% over last year.

As of September 30, 2008, the Company operated a total of 2,349 clinics worldwide. This is comprised of 1,666 clinics in North America (1,700 including managed clinics), an increase of 5%, and 683 clinics in the International segment, an increase of 8%.

Fresenius Medical Care delivered approximately 20.7 million dialysis treatments worldwide during the first nine months of 2008. This represents an increase of 5% year over year. North America accounted for 14.2 million treatments, an increase of 4%, and the International segment delivered 6.4 million treatments, an increase of 9% over last year.

Employees

As of September 30, 2008, Fresenius Medical Care had 63,990 employees (full-time equivalents) worldwide compared to 61,406 employees at the end of 2007.

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 2.88 at the end of the third quarter of 2007 to 2.71 at the end of the third quarter 2008.

Credit Ratings

During Q3, Moody´s did not change any Rating of Fresenius Medical Care. Standard & Poors revised its outlook on July 9th, 2008 from positive to negative in connection with Fresenius SE´s acquisition of APP Pharmaceuticals Inc. All other Ratings of Fresenius Medical Care were affirmed, last on September 4th, 2008. For further detailed information on Fresenius Medical Care´s Credit Relations we would like to refer you to our Internet Page at www.fmc-ag.com / InvestorRelations / CreditRelations where one can find for example additional information on our credit ratings, maturity profiles and credit instruments.

Outlook for 2008

For the year 2008, the Company confirms its outlook and expects to achieve revenue of more than $10.4 billion, an increase of more than 7%.

Net income is projected to be between $805 million and $825 million in the fiscal year 2008. This represents an increase of 12% to 15%.

In addition, the Company expects to spend $650 to $750 million on capital expenditures and $150 to $250 million on acquisitions. The debt/EBITDA ratio is projected to decrease to below 2.8 by the end of 2008.

For 2010, Fresenius Medical Care continues to expect revenue of more than $11.5 billion. Earnings after tax are projected to grow in the low- to mid-teens each year.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are very pleased to report a strong third quarter and first nine months of 2008. Our organic revenue growth clearly accelerated during the year 2008 showing an excellent growth of 8% in the third quarter of 2008. With 12% of revenue, we have seen a very strong operating cash flow performance. We continued our investments in future growth by expanding our clinic network and production capacities as well as our research and development activities. Despite cost pressures, an uncertain economic environment and volatile currency developments, we are proud to say that we can reconfirm our guidance for 2008 and are confident of achieving our mid term financial targets for 2010. More importantly in the current environment, our financing is very stable through 2011. We remain focused on continuing to execute our strategic objectives, in particular, providing our patients the best dialysis treatment possible to ensure a maximum of quality of life."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the third quarter and the first nine months of 2008 on Tuesday, November 4, 2008, at 3:30 pm CEDT / 9:30 am EDT. The Company invites journalists to view the live webcast of the conference call at the Company's website at www.fmc-ag.com / Investor Relations / Presentations. A replay will be available shortly after the call.

Contact

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

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• Sales: € 8.8 billion, +4 % at actual rates, +11 % in constant currency
• Adjusted EBIT: €1.2 billion, +2 % at actual rates, +9 % in constant currency
• Adjusted net income: € 324 million, +9 % at actual rates, +14 % in constant currency

• Strong sales and earnings growth in all business segments
• Acquisition of APP Pharmaceuticals finalized, financing steps successfully implemented
• 2008 sales outlook raised, earnings outlook fully confirmed

2008 sales outlook raised, earnings outlook fully confirmed

Based on the Group's excellent revenue development in the first three quarters Fresenius raises its sales outlook for 2008. Fresenius now expects to achieve sales growth of 9.5 to 10.5 % in constant currency. Previously, Fresenius expected sales growth of 8 to 10 % in constant currency. Net income is expected to increase by 10 to 15 % in constant currency. The outlook excludes the APP acquisition and related special items.

Sales growth of 11 % in constant currency

Group sales increased by 11 % in constant currency and by 4 % at actual rates to € 8,761 million (Q1-3/2007: € 8,390 million). Organic sales growth was 7 %. Acquisitions contributed a further 4 %. APP was consolidated as of September 1, 2008. Currency translation had a negative impact of 7 %. This is mainly attributable to the average US dollar rate depreciating 13 % against the euro in the first three quarters of 2008 compared to previous year's period.

Sales growth in the business segments was as follows:

In Europe, sales grew by 15 % in constant currency with organic sales growth of 9 %. In North America, constant currency growth was 5 % and organic sales growth was 4 %. Strong organic growth rates were achieved in the emerging markets, reaching 14 % in Asia-Pacific and 18 % in Latin America.



Strong earnings growth

Adjusted Group EBITDA increased by 11 % in constant currency and by 4 % at actual rates to € 1,546 million (Q1-3/2007: € 1,485 million). Adjusted Group operating income (EBIT) grew by 9 % in constant currency and by 2 % at actual rates to € 1,209 million (Q1-3/2007: € 1,184 million). The Group's adjusted EBIT margin was 13.8 % (Q1-3/2007: 14.1 %). Group EBIT (including special items) was € 1,053 million.

The Group's US GAAP financial statements as of September 30, 2008 include several special items relating to the acquisition of APP Pharmaceuticals. The single-largest of those items is the full depreciation of acquired in-process R&D activities, leading to a non-cash charge of € 175 million. Under IFRS, acquired in-process R&D is capitalized and amortized over the expected life of the developed products. IFRS and US GAAP financial statements therefore differ significantly. The IFRS approach will be adopted by US GAAP as from 2009.

Adjusted earnings represent the Group's business operations in the reporting period. Including special items, EBIT is € 1,053 million and net income is € 153 million (see reconciliation on page 3). Under IFRS, EBIT is € 1,236 million and net income is € 321 million.

Group net interest improved slightly to € -271 million (Q1-3/2007: € -279 million). Lower average interest rates on liabilities of Fresenius Medical Care and currency translation effects had a positive impact. This was partially offset by incremental debt relating to the APP Pharmaceuticals and Dabur Pharma acquisitions.

The adjusted Group tax rate was 34.9 % (Q1-3/2007: 36.0 %). The Group tax rate including special items was 41.2%.

Minority interest increased slightly to € 287 million (Q1-3/2007: € 281 million), of which 93 % was attributable to the minority interest in Fresenius Medical Care.

Adjusted Group net income grew by 14 % in constant currency and by 9 % at actual rates to € 324 million (Q1-3/2007: € 298 million). Adjusted earnings per ordinary share increased to € 2.06 and adjusted earnings per preference share increased to € 2.07 (Q1-3/2007: ordinary share € 1.92, preference share € 1.93). This represents an increase of 12 % for both share classes in constant currency.

Reconciliation to adjusted earnings

The table below reconciliates adjusted EBIT and adjusted net income to earnings according to US GAAP:




Acquired in-process R&D activities have to be fully depreciated at the closing under currently valid US GAAP accounting principles.

The inventory step-up reflects the excess of fair value over book value of acquired semi-finished and finished products. The amount is amortized in line with the sale of the respective products.

The foreign exchange gain arises from US-Dollar strength increasing the value of a US$-denominated inter-company loan to Fresenius Kabi Pharmaceuticals Holdings, Inc.

Both the Mandatory Exchangeable Bonds and the Contingent Value Rights are viewed as liabilities and therefore recognized with their fair redemption value. Valuation changes will lead to gains or expenses on a quarterly basis until maturity of the instruments.

One-time financing expenses include commitment and funding fees for the bridge facility as well as the full depreciation of financing costs related to APP's Syndicated Facility from 2007.

Group net income (including special items) was € 153 million or € 0.97 per ordinary share and € 0.98 per preference share.

Continued investments in growth

Fresenius Group spent € 502 million for property, plant and equipment (Q1-3/2007: € 481 million). Acquisition spending was € 3,760 million (Q1-3/2007: € 246 million), primarily relating to the acquisition of APP Pharmaceuticals.

Sustainable cash flow development

Operating cash flow decreased to € 736 million (Q1-3/2007: € 912 million), mainly due to an increase of inventories and trade accounts receivables. The cash flow margin reached 8.4 % (Q1-3/2007: 10.9 %). Consequently, and due to net capital expenditure increasing to € 496 million (Q1-3/2007: € 461 million), Cash flow before acquisitions and dividends decreased to € 240 million (Q1-3/2007: € 451 million). Dividends of € 235 million were financed out of cash flow. Acquisitions were financed through new debt and equity.

Balance sheet impacted by APP acquisition

Fresenius Group's total assets increased by 29 % in constant currency and by 31 % at actual rates to € 20,114 million (December 31, 2007: € 15,324 million). 73 % of this increase is due to the acquisition of APP Pharmaceuticals. Current assets increased by 17 % in constant currency and at actual rates to € 5,018 million (December 31, 2007: € 4,291 million). Non-current assets grew by 34 % in constant currency and by 37 % at actual rates to € 15,096 million (December 31, 2007: € 11,033 million).
Shareholders' equity including minority interest increased by 10 % in constant currency and by 11 % at actual rates to € 6,750 million (December 31, 2007: € 6,059 million). The equity ratio (including minority interest) was 33.6 % (December 31, 2007: 39.5 %).

Group debt increased to € 8,588 million (December 31, 2007: € 5,699 million), mainly due to the acquisition of APP Pharmaceuticals. As of September 30, 2008, the net debt/EBITDA ratio was 3.7 (December 31, 2007: 2.6), pro forma the acquisition of APP Pharmaceuticals and excluding special items. In constant currency, the net debt/EBITDA ratio was 3.5.

The acquisition financing for APP Pharmaceuticals was successfully implemented: Mandatory Exchangeable Bonds issued in July and a capital increase executed in August provided aggregate proceeds of more than US$ 1,320 million. On October 10, the syndication of Fresenius' Senior Secured Credit Facilities was completed. Substantial oversubscription facilitated the increase of the targeted amount by US$ 500 million to US$ 2,950 million. As a consequence, Fresenius was able to reduce the Bridge Facility, which has a maturity of 7 years, utilized with US$ 1,300 million at the time of closing of the acquisition, by half to US$ 650 million.

Number of employees increased

As of September 30, 2008, Fresenius increased the number of its employees by 6 % to 121,288 (December 31, 2007: 114,181). The increase was mainly driven by Fresenius Medical Care and Fresenius Kabi due to the acquisitions of APP Pharmaceuticals and Dabur Pharma.

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.

The registration process for Removab in Europe in the indication malignant ascites is proceeding according to plan. Fresenius Biotech dispatched the marketing authorization application to the European Medicines Agency (EMEA) in December 2007 and expects a recommendation from EMEA's Committee for Human Medicinal Products in early 2009.

Fresenius Biotech's EBIT was € -32 million (Q1-3/2007: € -33 million). For 2008, Fresenius Biotech expects an EBIT of € -45 million to € -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 September 30, 2008, Fresenius Medical Care was treating 181,937 patients in 2,349 dialysis clinics.

• Strong nine months results - Excellent revenue growth in all regions
• Outlook 2008 fully confirmed

Fresenius Medical Care achieved sales growth of 10 % to US$ 7,890 million (Q1-3/2007: US$ 7,151 million). Organic growth was 7 %. Currency translation effects had a positive impact of 3%. Sales in dialysis care increased by 7 % to US$ 5,753 million (Q1-3/2007: US$ 5,357 million). In dialysis products sales grew by 19 % to US$ 2,136 million (Q1-3/2007: US$ 1,794 million).

In North America sales increased by 4 % to US$ 5,153 million (Q1-3/2007: US$ 4,957 million). Dialysis services revenue increased by 3 % to US$ 4,615 million. Average revenue per treatment for the U.S. clinics increased to US$ 333 in the third quarter of 2008. This represents an increase of US$ 6 per treatment compared to the third quarter of 2007 as well as sequentially from the second quarter of 2008. The improvement in the revenue per treatment was primarily due to increased commercial revenue rates. Sales outside North America ("International" segment) grew by 25 % (13 % in constant currency) to US$ 2,737 million (Q1-3/2007: US$ 2,194 million). Strong sales growth in constant currency was achieved in Asia-Pacific (+11 %), Europe (+13 %) and Latin America (+18 %).

EBIT rose by 8 % to US$ 1,240 million (Q1-3/2007: US$ 1,152 million) resulting in an EBIT margin of 15.7 % (Q1-3/2007: 16.1 %). This development mainly reflected higher research and development expenses and start-up costs for new clinics. Reduced reimbursement rates for EPO, lower utilization levels of EPO as well as increased costs for the anticoagulant drug Heparin were offset by increases in underlying reimbursement rates and strong contributions from renal products.

Net income increased by 16 % to US$ 603 million (Q1-3/2007: US$ 520 million).

For 2008, Fresenius Medical Care confirms its outlook and expects to achieve revenue of more than US$ 10.4 billion, an increase of more than 7 %. Net income is projected 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 organic sales growth of 9 %
• Sales outlook 2008 at upper end of guidance, earnings outlook fully confirmed (pre-App acquisition)

Fresenius Kabi increased sales by 16 % to € 1,734 million (Q1-3/2007: € 1,494 million). Organic sales growth was 9 %. Net acquisitions contributed a further 10 % to sales. This includes the acquisitions of APP Pharmaceuticals and Dabur Pharma which were both consolidated as from September 1, 2008. Currency translation effects had a negative impact of 3 %. This was mainly due to the depreciation of currencies in Great Britain, South Africa, Korea and China.

Organic sales growth in Europe (excluding Germany) was 7 %. In Germany, organic sales growth was 3 %. In the Asia-Pacific region, Fresenius Kabi achieved high organic sales growth of 23 %. Organic sales growth in Latin America was 11 % and in other regions 10 %.

EBIT grew by 20 % to € 290 million (Q1-3/2007: € 242 million). EBIT includes € 2 million amortization of APP intangible assets. The EBIT margin increased to 16.7 % (Q1-3/2007: 16.2 %). Net income grew by 13 % to € 149 million (Q1-3/2007: € 132 million).

To allow accurate tracking of the company's underlying performance, Fresenius Kabi's guidance for 2008 does not comprise any effects of the APP acquisition. On this basis, Fresenius Kabi fully confirms its outlook: The company now targets sales growth in constant currency at the upper end of the previously announced range of 12 to 15 %. Fresenius Kabi forecasts an EBIT margin of about 16.5 %. Inclusion of APP Pharmaceuticals would increase both metrics.

On September 10, 2008, Fresenius SE closed the acquisition of APP Pharmaceuticals, Inc. APP is a leading manufacturer of intravenously administered generic drugs (I.V. generics) in North America. 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 Pharmaceuticals' revenues increased by 20 % to US$ 544 million (Q1-3/2007: US$ 453 million). Adjusted EBITDA was US$ 217 million. APP has modified its 2008 outlook provided in July. This is mainly the result of lowered sales expectations for Heparin. The company now expects sales in the range of US$ 765 to 785 million (previously US$ 800 to 820 million), an increase of 19 to 22 % compared to US$ 647 million in 2007. Adjusted EBITDA is expected to rise 24 to 28 % to between US$ 315 to 325 million (previously US$ 325 to 350 million), compared to US$ 253 million last year. The new guidance is still slightly ahead of Fresenius Kabi's acquisition business plan.

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


Fresenius Helios

Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 61 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats about 530,000 in-patients per year at its clinics and operates a total of approximately 17,700 beds.

• Continued excellent sales and earnings growth
• Sales outlook 2008 raised, EBIT guidance confirmed at the upper end of range

Fresenius Helios increased sales by 16 % to € 1,568 million (Q1-3/2007: € 1,348 million). Acquisitions contributed 11 % to overall sales growth. Organic growth remained at a strong 5 %*, driven by a significant increase in hospital admissions.

EBIT grew by 15 % to € 127 million (Q1-3/2007: € 110 million) due to the very good business operations of the established clinics. The EBIT margin was 8.1 % (Q1-3/2007: 8.2 %). Net income improved by 34 % to € 59 million (Q1-3/2007: € 44 million).

At the established clinics, sales rose by 5 %* to € 1,423 million. EBIT improved by 24 % to € 136 million. The EBIT margin increased to 9.6 % (Q1-3/2007: 8.2 %). The acquired clinics (consolidation < 1 year) achieved sales of € 145 million and an EBIT of € -9 million.

The Mariahilf hospital in Hamburg was consolidated as from August 1, 2008.

Fresenius Helios raises the sales outlook for 2008: The company expects to achieve sales of € 2,050 to 2,100 million. Previously, Fresenius Helios expected sales of more than € 2,050 million for 2008. EBIT is projected to reach the upper end of the announced range of € 160 to 170 million, including the negative contribution from the hospitals Krefeld and Hüls.

HELIOS has undertaken a further important step for the independent and transparent publication of treatment quality: together with six hospital operators comprising about 100 clinics with approximately 1 million patients treated a Germany-wide quality improvement initiative has been launched. All hospital operators are committed to standardized quality measurement of the treatment processes at the clinics and to publish the respective results. The commitment also includes peer review processes. Within the framework of these processes, internal and external experts examine treatment results not meeting the initiative's quality standards. Improvement measures are discussed jointly with the respective clinic. The aim of this analysis is to systematically improve the procedures and structures of the treatment processes. This is the first joint initiative of hospital operators for quality improvement in Germany and reflects HELIOS' efforts to improve the transparency of quality indicators in the German health care industry.

* growth rate on a like for like basis


Fresenius Vamed

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

• Strong sales and earnings growth
• Outlook 2008 raised

Fresenius Vamed achieved excellent sales growth of 24 % to € 290 million (Q1-3/2007: € 234 million). Acquisitions contributed 4 % whereas de-consolidations had a negative impact of 4 %. Organic sales growth was 24 %. Sales in the project business rose by 34 % to € 167 million (Q1-3/2007: € 125 million). Sales in the service business increased by 13 % to € 123 million (Q1-3/2007: € 109 million).

EBIT increased by 27 % to € 14 million (Q1-3/2007: € 11 million). The EBIT margin was 4.8 % (Q1-3/2007: 4.7 %). Net income also increased by 27 % to € 14 million (Q1-3/2007: € 11 million).

Order intake in the project business increased by 9 % to € 242 million (Q1-3/2007: € 222 million). In the third quarter of 2008, VAMED received - among others - two orders worth about € 25 million each. One is for the construction of a new post-acute care clinic in Schruns, Austria. Secondly, VAMED has signed a contract for construction and equipment of a medical training centre in Gabon. The facility is adjacent to the regional hospital of Libreville which was constructed and is managed by VAMED.

Order backlog as of September 30, 2008 was € 569 million, an increase of 12 % (December 31, 2007: € 510 million).

Fresenius Vamed raises its outlook for 2008 and expects to grow sales by 15 to 20 %. EBIT is expected to grow by more than 10 %. Previously, both sales and EBIT were expected to grow by 5 to 10 %.


Analyst Conference Call and Audio Webcast

As part of the publication of the results for the first three quarters and the third quarter of 2008, a conference call will be held on November 4, 2008 at 2.00 p.m. CEDT (8.00 a.m. EST). 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.

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
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The tenth Fresenius Inventors' Fair will give 20 chosen researchers, developers and inventors the opportunity to present their ideas to a broad audience during the world's largest medical trade fair MEDICA in Düsseldorf from November 19 to 21, 2008. The top three entries will be selected by Fresenius and receive awards totaling €10,000. The winning entries are picked on the first day of MEDICA by a jury comprising medical specialists and business representatives. About 50 doctors, scientists, engineers, technicians and care professionals are among the entrants this year. Their proposals include a broad spectrum, ranging from methods to detect cancer to a novel, synthetic heart valve to a vibrating training device for wheelchair users. The Fresenius Inventors' Fair is held every two years during MEDICA.

The winning project of the last Fresenius Inventors' Fair came from a team of scientists from Regensburg University of Applied Sciences as well as Passau University. They developed a pen equipped with sensor technology to record neuromuscular activity of the hand. The sensor pen provides data that can prove useful in the diagnosis of diseases, such as Parkinson's, schizophrenia and stroke. The second place was awarded to two new orthopedic surgical instruments, which are already being marketed, that allow for careful removal of worn implants while causing minimal bone damage. Other winners in past years have included a needle to easily draw blood from premature babies, a device for a virtually pain free colonoscopy, a new method for the manufacture of nitrogen monoxide and a mobile device to wash bedridden patients.

"The Fresenius Inventors' Fair offers exhibitors the chance to present their innovations to industry representatives and doctors," Jury Member and physician Martin Hepper said. "Fresenius hopes to help link inventors with companies that will further develop or market their innovations. Groundbreaking ideas should help treat the sick rather than land in an archive somewhere." Past fairs have proven to be useful platforms for inventors to network with businesses. In the past year, more than 137,000 foreign and local visitors have attended MEDICA.

The Fresenius Inventor's Fair can be found at MEDICA in Hall 8b. The award ceremony starts at 1 p.m. on Wednesday, November 19. MEDICA is open from 10 a.m. to 6:30 p.m. from November 19 to 21 in Düsseldorf. Additional information on the Inventors' Fair may be found at www.fresenius-erfindermesse.de, and on MEDICA at www.medica.de.

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

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The tenth Fresenius Inventors' Fair will give 20 chosen researchers, developers and inventors the opportunity to present their ideas to a broad audience during the world's largest medical trade fair MEDICA in Düsseldorf from November 19 to 21, 2008. The top three entries will be selected by Fresenius and receive awards totaling €10,000. The winning entries are picked on the first day of MEDICA by a jury comprising medical specialists and business representatives. About 50 doctors, scientists, engineers, technicians and care professionals are among the entrants this year. Their proposals include a broad spectrum, ranging from methods to detect cancer to a novel, synthetic heart valve to a vibrating training device for wheelchair users. The Fresenius Inventors' Fair is held every two years during MEDICA.

The winning project of the last Fresenius Inventors' Fair came from a team of scientists from Regensburg University of Applied Sciences as well as Passau University. They developed a pen equipped with sensor technology to record neuromuscular activity of the hand. The sensor pen provides data that can prove useful in the diagnosis of diseases, such as Parkinson's, schizophrenia and stroke. The second place was awarded to two new orthopedic surgical instruments, which are already being marketed, that allow for careful removal of worn implants while causing minimal bone damage. Other winners in past years have included a needle to easily draw blood from premature babies, a device for a virtually pain free colonoscopy, a new method for the manufacture of nitrogen monoxide and a mobile device to wash bedridden patients.

"The Fresenius Inventors' Fair offers exhibitors the chance to present their innovations to industry representatives and doctors," Jury Member and physician Martin Hepper said. "Fresenius hopes to help link inventors with companies that will further develop or market their innovations. Groundbreaking ideas should help treat the sick rather than land in an archive somewhere." Past fairs have proven to be useful platforms for inventors to network with businesses. In the past year, more than 137,000 foreign and local visitors have attended MEDICA.

The Fresenius Inventor's Fair can be found at MEDICA in Hall 8b. The award ceremony starts at 1 p.m. on Wednesday, November 19. MEDICA is open from 10 a.m. to 6:30 p.m. from November 19 to 21 in Düsseldorf. Additional information on the Inventors' Fair may be found at www.fresenius-erfindermesse.de, and on MEDICA at www.medica.de.

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

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• Fresenius Helios reiterates sales target of € 2.3 billion for 2010
• Fresenius Vamed sees mid-term annual organic sales growth of 5 – 10 %

Bad Homburg. Fresenius Helios and Fresenius Vamed are in an excellent position for further sales and earnings growth despite an ongoing global economic downturn. Fresenius Helios and Fresenius Vamed, business segments of Fresenius SE, are hosting their first Capital Market Day in Berlin today to inform investors and analysts about strategies, growth opportunities and business activities. Fresenius Helios and Fresenius Vamed were created as new business segments in early 2008 from previous business segment Fresenius ProServe. The new organizational structure set the stage for the focused expansion of the two business segments and underlines the growing importance of the hospital market for the Fresenius Group. Fresenius Helios is one of Germany's three biggest hospital operators. Fresenius Vamed is a global leader in engineering and services for hospitals and other health care facilities.

Fresenius Helios and Fresenius Vamed expect further profitable growth despite the current global economic decline. The business segments operate in a mostly non-cyclical sector, where demand for high-quality and efficient medical care is growing, driven by demographic changes in developing and emerging countries. Fresenius Helios sees very good growth opportunities in the German hospital market and reiterates its sales target of € 2.3 billion in 2010. Fresenius Vamed expects to achieve organic sales growth of 5 – 10 % p.a. in the mid-term. In the first nine months of 2008, sales increased by 24 % to € 290 million mainly driven by the project business.

"We are very satisfied with the financial results and the growth perspectives of Fresenius Helios and Fresenius Vamed," says Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE. "Both companies raised their 2008 financial targets. This confirms that their proven business models are prevailing during this difficult economic climate. Both are quality leaders in the market and offer excellence in healthcare and medicine."

Fresenius Helios
HELIOS operates 57 clinics, including five maximum care hospitals. Fifty-six are in Germany and one is in Switzerland. HELIOS treats about 550,000 inpatients annually and operates about 17,300 beds. In the first nine months of 2008, sales increased by 16 % to € 1.568 billion and EBIT grew by 15 % to € 127 million.

"The hospital market offers good growth prospects for the future," says Dr. Francesco De Meo, CEO of business segment Fresenius Helios. "Presently we see several privatization projects, and we will participate where we see a good strategic fit. In our negotiations with previous hospital owners, we have learned that our commitment to the highest medical quality and transparency helps us win projects."

HELIOS remains on track for its five-year goal, announced in 2005, to acquire € 800 million of hospital revenues between 2006 and 2010. At about € 450 million currently, the company firmly expects to reach that goal and to meet its sales target of € 2.3 billion in 2010.

HELIOS' business model is primarily based on growth through acquisitions and restructuring of acquired hospitals. HELIOS improves the acquired hospitals' profitability by improving operations and medical performance along with cost savings and investment in infrastructure and provides medical care of the highest quality. According to HELIOS' restructuring plan, hospitals are expected to achieve an EBITDA margin of 15 % within five years following acquisition.


Fresenius Vamed
Founded in 1982, VAMED has completed about 450 projects in 47 countries and is a global leader in providing planning, construction and management of complex health care facilities.

VAMED generates around 60 percent of its sales from its project business, which includes consulting, project development, project management and construction. About 40 % of sales are generated from the service business, which includes maintenance, technical, commercial and infrastructure services for health care facilities as well as operating these facilities in certain markets. VAMED offers a complete value chain to support hospitals efficiently and successfully at each level of their life cycle.

"We are well positioned to meet our targets this year," says Dr. Ernst Wastler, CEO of business segment Fresenius Vamed. "Order intake developed strongly and we see good opportunities for continued growth, strengthened by our integrated approach as contracts in our project business lead to contracts in our service business and vice versa."

VAMED is active in Europe, Africa, Asia-Pacific and Latin America and is successful in established and emerging markets. In established markets, medical facilities face challenges to increase their efficiency. VAMED offers them competitive hospital management, new technologies, outsourcing of technical, commercial and infrastructural services and public-private-partnerships. The company helps hospitals in established markets to concentrate on their core competency, the care of patients. In emerging markets, VAMED offers comprehensive know-how for the development of healthcare infrastructure, planning and construction of hospitals and a complete range of services, including total management.

In the first nine months of 2008, Fresenius Helios and Fresenius Vamed contributed 21 % to sales and 22 % to earnings after tax of Fresenius Group.

Fresenius will hold a live webcast of its Capital Market Day starting 8.30 a.m. today. The webcast is available at www.fresenius.com / investor relations / presentations. A replay will be available shortly after the event finishes.

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Numerous peritoneal dialysis (PD) products of Fresenius Medical Care are now certified by Nordic Ecolabel, making it the first health care company in the world to receive this designation for its medical products. The license covers nearly all disposable products made of PVC-free Material Biofine®, developed by Fresenius Medical Care. The products include bags for PD solutions as well as accessories for PD machines, offered in many European countries.

Nordic Ecolabel is the official Ecolabel in the Scandinavian countries of Denmark, Finland, Iceland, Norway and Sweden and signals the environmental impact of a product or service. As one of the most popular Ecolabels worldwide, it has been awarded to products and services in 66 categories so far. It is also known as "Swan" by most Scandinavians because of its logo, a stylized white swan across a green background. According to the Nordic Ecolabelling Board (NMN), which awards the Ecolabel, two-thirds of Scandinavians are familiar with Nordic Ecolabel and its significance.

Nordic Ecolabelled PD products must meet strict criteria. They must, among other things, not contain PVC and substances that are toxic or resist degradation (persistent), which are deposited in organisms (bioaccumulative) or disrupt the endocrine system (endocrine disrupters). Furthermore, the manufacturing process needs to adhere to state of the art quality standards.

"We developed Biofine® because an important concern of our company is to preserve nature and to save natural resources," said Dr. Emanuele Gatti, Chief Executive Officer of Fresenius Medical Care for the regions Europe, Latin America, Middle East and Africa. "Our Biofine® technology is unique and therefore we are pleased to be the first health care company ever to offer medical products with the Nordic Ecolabel. This is another building block in our extensive environmental program. Our products are environmentally friendly and innovative. They offer the best quality of care for the benefit of patients."

For more information about the Nordic Ecolabel and the certification of Fresenius Medical Care's PD products visit www.svanen.nu/eng.

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HELIOS Kliniken Group, a business segment of Fresenius SE, has strengthened its presence in the German hospital market. The company has agreed to acquire three hospitals in the Mansfeld-Südharz county of Saxony-Anhalt and two in the Northeim county of Lower Saxony. Combined sales of the five hospitals were approx. € 136 million in 2007.

The three acute care hospitals in Saxony-Anhalt are part of Krankenhaus-Holding GmbH Mansfeld-Südharz. They have a total capacity of 834 beds, of which 327 belong to Krankenhaus am Rosarium hospital in Sangerhausen and 507 to Klinikum Mansfelder Land & Pflege hospital, which has two locations in Lutherstadt Eisleben and Hettstedt. The three hospitals have about 1,600 employees and treated more than 30,000 patients in 2007. Sales were approx. € 86 million in the same period. HELIOS will own a 94.9 % stake in the hospitals, and the county will hold a 5.1 % share. With this acquisition HELIOS is now present in the German state of Saxony-Anhalt. In the neighboring state of Thuringia, HELIOS already owns four clinics - a maximum care hospital in Erfurt and clinics in Bleicherode, Gotha and Blankenhain.

The two hospitals in Lower Saxony were previously owned by Rhume-Leine-Gande-Klinikum GmbH. They have a total capacity of 371 beds, of which 273 belong to Albert-Schweitzer-Krankenhaus in Northeim and 98 to the Evangelische Krankenhaus in Bad Gandersheim. The two hospitals employ about 1,000 people and treated more than 16,300 patients in 2007. Sales were approx. € 50 million in the same period. HELIOS will own a 94.9 % stake in Albert-Schweitzer-Krankenhaus and a 94.8 % stake in Evangelische Krankenhaus. The Northeim county and the Evangelisches Krankenhaus Foundation will own 5.1 % and 5.2 % respectively. At the location in Northeim, HELIOS plans to build a new clinic to expand and improve medical services. HELIOS currently owns six clinics in the north of Germany - a maximum care hospital in Schwerin and clinics in Bad Schwartau, Cuxhaven, Geesthacht, Leezen and Hamburg.

"We are pleased with the decision of these two counties to award their privatization projects to HELIOS. Our concept focuses on medical quality and transparency," said Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE. "With this acquisition, we continue our successful expansion in the German hospital market. The five clinics are well-positioned in their regions and offer considerable potential for enhanced medical care."

The parties agreed not to disclose the purchase prices. The acquisitions are still subject to the approval of county and anti-trust authorities. Additionally, the acquisition in Mansfeld-Südharz is subject to the approval of the Fresenius SE Supervisory Board. HELIOS expects to close these transactions in the first half of 2009.

HELIOS Kliniken Group has 57 clinics, of which 38 are acute hospitals and 19 are postacute care clinics. With five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal, HELIOS maintains a leading market position in the privatization of hospitals of this size in Germany. HELIOS is one of the biggest providers of in-patient and out-patient care in Germany and treats about 1.5 million patients annually, of whom about 550,000 are in-patients. HELIOS has more than 17,300 beds and 30,000 employees. Sales in 2007 were more than € 1.8 billion.