Fresenius Medical Care has been recognized for its new 5008 therapy system with the "red dot award: product design". This therapy system is used for treating for patients with chronic kidney failure. Since 1955, the Design Zentrum Nordrhein Westfalen has been marking outstanding international product design with the award. This year, more than 2,000 products from companies in 41 countries took part in the competition. The jury praised the noticeable improvement in the level of the entries: "Even in product categories where design was typically more neglected, such as medicine, design has now become an important competitive factor," the jury noted in a statement.

Dr. Emanuele Gatti, Management Board Member of Fresenius Medical Care responsible for development: "We are very pleased about the ‘red dot award: product design'. With the 5008 therapy system, we have primarily improved treatment quality and efficiency but also placed an emphasis on design. The award proves that medical equipment fits perfectly with creative product design." This benefits treatment personnel in dialysis clinics since they can operate and monitor the 5008 therapy system centrally, simply and, above all, safely using a large touch-screen monitor with an intuitive menu. During the design of the dialysis machine, developers integrated the latest ergonomic knowledge. All elements of the therapy system were laid out according to the most ideal working positions and procedures. Blood lines are easier to install and remove on the machine and all components are readily accessible and easily replaced.

The "red dot award: product design" will be presented during a gala celebration at the opera house in Essen, Germany on June 26. Some 1,200 guests from culture, business and politics are expected. Following the ceremony, the products recognized with the award will be on-display during a special "Design on stage – winners red dot award: product design 2006" exhibition at the red dot design museum in Essen through July 23. The 5008 therapy system has already won the 26th German Business Innovation Award last January.

Dialysis machines such as the new 5008 therapy system count among the most important products for the treatment of patients with chronic kidney disease. The machines pump blood from a special access in the arm of a patient into the dialyzer where metabolic toxins and excess water are filtered from the blood with the help of a dialysis solution. The filtered blood is then infused back into the patient. The dialysis machine controls the circulation of blood outside the body and the composition of the dialysis solution. In addition, it introduces anti-coagulation drugs to prohibit clotting. This life-sustaining treatment is normally administered three times a week and lasts about four hours.

The 5008 differentiates itself from traditional dialysis systems by cost-effectively combing two different treatment procedures: diffusion-based hemodialysis and hemofiltration, where blood is filtered through a membrane. The increased amount of fluids filtered by the machine is countered automatically with the introduction of ultrapure electrolyte solution. This solution is produced by the dialysis machine itself – traditional machines would require extra solution in bags. The procedure is called online hemodiafiltration (Online-HDF) and is regarded by experts as the best-possible treatment type because of its many advantages for patients. Until now, an increase in costs limited Online-HDF to only a few patients. The new 5008 therapy system is able to significantly reduce operating costs through simpler operation, fewer maintenance requirements and an as-much-as 30% reduction in the amount of electricity and water needed. For the first time, this enables cost-effective access to Online-HDF treatment for a broader number of patients.

High resolution pictures and additional information on the new 5008 therapy system are available online at www.fresenius-ag.com/presskit.  Further details on the red dot award: product design can be found on the Design Zentrum Web site at http://en.red-dot.org/77.html.

# # #

The Design Zentrum Nordrhein Westfalen was originally founded in 1954 in Essen as an association called „Industrieform e.V." The association's aim was to "facilitating an appropriate design of the environment for the public at large". Today, The Design Zentrum Nordrhein Westfalen is a globally recognized qualification and communication centre for industry, politics and society. Since 1997, it has been based in the former boiler house of Zeche Zollverein, a mine complex included in the UNESCO World Cultural Heritage list. There, in the unique architecture of the red dot design museum - the mine building converted by Lord Foster of Thames Bank - the Design Zentrum presents the present and future of design.

For more information about the Design Zentrum visit its website at www.red-dot.de.

Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 2,045 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 158,700 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

Fresenius Medical Care ("the Company"), the world's largest provider of Dialysis Products and Services, has received regulatory approval from Germany's Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte) for a new phosphate binding agent. The drug "OsvaRen" is expected to be introduced to the German market in the second half of 2006. The Company aims at quickly receiving accelerated approval for the new phosphate binding agent in other countries within the European Union using the mutual recognition process. The new phosphate binding agent should be introduced in all European Countries in 2007.

The newly approved product is a phosphate binding agent that is made from a combination of calcium acetate and magnesium carbonate. Excess phosphate consumed with food is normally removed by the kidneys in a process that can only partially be replaced by dialysis in patients with chronic kidney failure. Too much phosphate in the blood can result in mid-term damages to bones and blood vessels. The risk of such damages can be lowered by regularly taking in phosphate binders. The new compound from Fresenius Medical Care combines two substances known to support bone health while optimizing the levels of calcium.

With the approval of the new drug Fresenius Medical Care has made a further step to develop new business opportunities with new renal therapy options combining dialysis expertise in products and services with certain drugs commonly used in dialysis.
"The expansion of our business into the renal drug arena for the treatment of patients with chronic kidney failure is part of our horizontal diversification. By further strengthening our broad portfolio of dialysis-related products and therapies, we create the basics for sustainable and profitable growth of our Company. This is a very interesting step where we are now able to partially address such opportunities in the market place" said Dr. Emanuele Gatti, Fresenius Medical Care Management Board Member responsible for Europe, Latin America, the Middle East and Africa.

# # #

Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 2,045 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 158,700 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

Summary Second Quarter 2006:

• Net revenue: $2,165 million, +29%

• Operating income (EBIT): $372 million, +56%
  Operating income (EBIT) excluding SFAS 123(R) and one-time items: $340 million, +42%

• Net income: $130 million, +12%
• Net income excluding SFAS 123(R) and one-time items: $139 million, +19%

Fresenius Medical Care AG & Co. KGaA ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of Dialysis Products and Services, today announced the results for the second quarter and the first six months 2006.

Second Quarter 2006:
Please note, the result of operations of Renal Care Group (RCG) is consolidated from April 1, 2006 onwards.

Revenue
Total revenue for the second quarter 2006 compared to the second quarter 2005 increased by 29% (30% at constant currency) to $2,165 million. Total organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 38% to $1,652 million (38% at constant currency) in the second quarter of 2006. Dialysis Product revenue increased by 9% to $514 million (9% at constant currency) in the same period. Excluding Renal Care Group (RCG) and the divested dialysis clinics in conjunction with the acquisition of RCG, revenue for the second quarter 2006 grew by 9%.

North America revenue increased by 38% to $1,561 million. Dialysis Services revenue increased by 43% to $1,428 million. Average revenue per treatment for the U.S. clinics increased by 8% to $317 in the second quarter 2006 as compared to $294 for the same quarter in 2005. Dialysis Product revenue increased by 5% to $133 million led by strong sales of our 2008K hemodialysis machines and single-use dialyzer sales (Carepak™). Excluding RCG and the related divestitures, the dialysis product revenue increased by 10% versus last year.

International revenue was $604 million, an increase of 11% (11% at constant currency) as compared to the second quarter of 2005. Dialysis Services revenue reached $224 million, an increase of 12% (13% at constant currency). Dialysis Product revenue increased by 10% to $380 million (10% at constant currency), led by strong machine (both the 4008 and 5008 series) sales.

Earnings
Operating income (EBIT) increased by 56% to $372 million, including a $39 million gain from the divestiture of dialysis clinics in conjunction with the regulatory approval for the acquisition of RCG. In addition, operating income for the second quarter 2006 includes $3 million of costs related to the change of accounting principles for stock options (SFAS 123R) and $4 million of one-time costs associated with the restructuring of RCG and the transformation of Fresenius Medical Care's legal form and related legal fees.

Excluding these costs and the gain from the divestiture, operating income for the second quarter 2006 increased by 42% to $340 million resulting in an operating margin of 15.7%. For the second quarter 2005 the operating margin was 14.3%.

Compared with the second quarter 2005, the operating margin in North America increased by 180 basis points to 15.8% due to the consolidation of RCG, an increase in the revenue per treatment and strong demand for dialysis products. In the International segment, the operating margin increased by 120 basis points to 18.0%. The strong operational performance in the International segment was driven by strong product sales in all regions and positively impacted by improvements in key countries in Latin America and Asia-Pacific.

Net interest expense for the second quarter 2006 was $100 million compared to $43 million in the same quarter of 2005. This increase is absolutely in line with expectations and is purely the result of the debt financing for the RCG acquisition.

Income tax expense was $135 million in the second quarter of 2006 as compared to $79 million in the second quarter 2005, reflecting effective tax rates of 49.6% and 40.4%, respectively. The tax rate has been impacted in the second quarter by tax payments in connection with the divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.8%.

Net income for the second quarter 2006 was $130 million, an increase of 12%. Excluding one-time costs and SFAS 123(R), the net income increased on a comparable basis by 19% to $139 million.

Earnings per share (EPS) for the second quarter of 2006 rose by 10% to $1.32 per ordinary share ($0.44 per American Depositary Share (ADS)), as compared to $1.20 ($0.40 per ADS) for the second quarter of 2005. The weighted average number of shares outstanding for the second quarter of 2006 was approximately 98.0 million shares, as compared to 96.4 million shares for the second quarter 2005. The increase in shares outstanding results from stock option exercises in 2005 and in the first half of 2006.

Cash Flow
In the second quarter of 2006, the Company generated $165 million in cash from operations, compared to $130 million last year. Cash from operations in the second quarter includes $75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments, the underlying cash from operations in the second quarter 2006 was $240 million, or 11.1% of revenue. The strong cash flow generation was supported by reductions in Days Sales Outstanding (DSO) and increased earnings.

A total of $95 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $70 million compared to $72 million in the second quarter of 2005. Excluding tax payments related to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the second quarter 2006 was $145 million. A total of $24 million in cash was used for acquisitions excluding the RCG acquisition.

First Half 2006:

Earnings and Revenue
In the first half of 2006, net income was $246 million, up 10% from the first half of 2005. Excluding costs related to the change of accounting principles for stock options (SFAS 123R) and one-time items net income increased by 19% to $266 million.

Net revenue was $3,912 million, up 19% from the first half of 2005. Adjusted for currency, net revenue rose 20% in the first half of 2006. Excluding Renal Care Group and the divested clinics revenue for the first half of 2006 grew by 10%.

Operating income (EBIT) increased by 34% to $616 million. Operating income for the first half of 2006 includes $29 million of income as a result of the gain from the clinic divestitures, net of costs mainly related to the RCG restructuring and the change of accounting principles for stock options.

Excluding these costs, operating income for the first half of 2006 increased by 28% to $587 million. This performance resulted in an operating margin of 15.0% as compared to 14.0% for the first half of 2005.

Net interest expense for the first six months of 2006 was $156 million as a result of the write-off of deferred financing costs related to the 2003 senior credit facility of $15 million and one quarter worth of additional interest expense, both in conjunction with the financing of the RCG acquisition. Income tax expense was $206 million in the first half of 2006 as compared to $149 million in the same period in 2005, reflecting effective tax rates of 44.8% and 39.8%, respectively. The tax rate has been impacted by tax payments in connection with the gain on divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.5%.

For the first half of 2006, earnings per ordinary share rose by 9% to $2.51 ($0.84 per ADS). The weighted average number of shares outstanding during the first half of 2006 was approximately 97.9 million.

Cash Flow
Cash from operations during the first half of 2006 was $327 million as compared to $268 million in the first half of 2005. Cash from operations in the first half of 2006 includes $75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments the underlying cash from operations was $402 million in the first half of 2006. The increase compared to prior year was mainly due to strong collection of receivables, improvements in earnings and lower income tax payments for prior years.

A total of $160 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first half of 2006 was $167 million as compared to $171 million in the first half of 2005. Excluding tax payments due to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the first half of 2006 was $242 million. A total of $35 million in cash was used for acquisitions other than the RCG acquisition in the first half of 2006.

For a complete overview of the second quarter and the first half of 2006, please refer to the appendix.

Patients - Clinics - Treatments
As of June 30, 2006, Fresenius Medical Care treated 161,675 patients worldwide, which represents a 26% increase in patients compared to the second quarter of last year. North America provided dialysis treatments for 117,830 patients (up 33%) and the International segment served 43,845 patients (up 11%).

As of June 30, 2006, the Company operated a total of 2,078 clinics worldwide, comprised of 1,540 clinics, an increase of 34% in North America, and 538 clinics, an increase of 8%, in the International segment.

Fresenius Medical Care delivered approximately 11.18 million dialysis treatments worldwide, which represents an increase of 16% year over year. North America accounted for 7.84 million treatments, an increase of 19%, and the International segment delivered 3.34 million treatments, an increase of 11% over last year.

Employees
As of June 30, 2006, Fresenius Medical Care employed 55,243 people (full-time equivalents) worldwide after 47,521 at the end of 2005. The increase of 7,722 employees is primarily due to the acquisition of Renal Care Group.

Renal Care Group Acquisition
As expected, Fresenius Medical Care completed the sale of additional 9 dialysis clinics in Illinois on June 30, 2006 after receiving the Illinois regulatory approval.

Outlook for 2006 Upgraded
Based on the strong performance in the first half of 2006, the Company upgrades its guidance for the full year 2006. After expecting to report a revenue of about $8.1 billion, the Company now expects a revenue for 2006 of about $8.3 billion.

The Company also upgrades its outlook for reported net income for 2006. After expecting a net income between $515 million and $535 million, the Company now expects to report a net income of at least $542 million, which represents an increase of at least 15% over the 2005 level.

In order to show the underlying performance of the Company, the guidance does not take into effect any expected one-time items and the change of accounting principle for stock options - SFAS 123(R) in the fiscal year 2006.

After previously assuming the after tax impact of one-time items and SFAS 123(R) to be about $60 million the Company now expects this impact to be about $40 million for the full year 2006.

In addition, the Company confirms its guidance on capital expenditures and acquisition spending to be approximately $550 million in 2006.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our second quarter and half year financial results were excellent and exceeded expectations. We continue to see earnings growth momentum which is based on the success of our global business strategies and the dedication of our employees. In addition, Renal Care Group is continuing to perform very well and our integration is well underway and on track. We are pleased that all regions and business segments grew at or above market. North America and Europe, which represent over ninety percent of our business, continued their strong growth in both the products and services segments. Based on the strong start in 2006, we have raised our revenue and net income guidance for 2006."

Video Webcast
Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the second quarter and the first half of 2006 on August 3, 2006, at 3.15 p.m. CEDT / 9.15 a.m. EDT. The Company invites you to view the live video webcast of the meeting at the Company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the meeting.

# # #

Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,078 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,675 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.  

• Sales: Euro 5.1 billion, + 37 % at actual rates,+ 34 % in constant currency
• EBIT: Euro 681 million, + 50 % at actual rates , + 46 % in constant currency
• Net income: Euro 140 million, + 39 % at actual rates, + 36 % in constant currency

• Fresenius Medical Care with strong sales and earnings growth
• Fresenius Kabi in the second quarter with EBIT margin record of more than 15 %
• Fresenius ProServe fully on track
• Integration of Renal Care Group progressing well; integration of HELIOS/WKA completed

Group outlook 2006: Sales and earnings forecast raised
Given the Company's strong performance in the first half, Fresenius raises its full-year 2006 sales and earnings outlook. Group sales are now expected to increase by approximately 35 % in constant currency to about € 10.7 billion. Net income is projected to grow by about 40 % in constant currency. The net income guidance already includes an amount of approximately € 27 million (after tax) associated with expected one-time expenses as well as expenses related to the stock option accounting change. Previously, the Company had expected net income growth to exceed 30 %. Earnings per share are now projected to increase by approximately 15 % in constant currency. Previously, earnings per share growth of around 10 % had been projected.

Sales – Strong growth continues
Group sales increased by 37 % to € 5,078 million (H1 2005: € 3,702 million). Excellent organic growth contributed 9 % to revenue growth. Acquisitions, in particular the first-time consolidation of Renal Care Group and HELIOS Kliniken in the income statement, contributed 25 %. Currency translation effects added 3 % to sales growth.

In North America, sales grew significantly due to the first-time consolidation of Renal Care Group. In addition, organic growth was excellent with 8 %. In Europe, the substantial sales increase was driven by the first-time consolidation of HELIOS Kliniken. However, underlying organic growth came in at a very good rate of 7 %. Excellent growth rates were achieved in the emerging markets, with organic growth of 24 % in Asia-Pacific and 19 % each in Latin America and Africa.

Sales contribution of the three business segments:




Fresenius ProServe's increased sales contribution is the result of the consolidation of HELIOS Kliniken.

Strong earnings growth
Group EBIT increased by 50 % at actual rates and by 46 % in constant currency to € 681 million (H1 2005: € 453 million). The growth was driven by the successful operating performance of all business segments as well as the first-time consolidation of Renal Care Group and HELIOS Kliniken. EBIT includes a gain of € 32 million from the divestitures of dialysis clinics in the USA. The sale was a condition of the US Federal Trade Commission for the approval of the Renal Care Group acquisition. EBIT also includes a total of € 11 million one-time expenses and expenses related to the stock option accounting change.

Primarily, given the debt financing of the Renal Care Group acquisition, Group net interest increased to € -194 million (H1 2005: -97 million). This number however also includes one-time expenses of € 30 million associated with the refinancing of Group debt.

The tax rate was 41.9 % (H1 2005: 39.3 %). It was substantially influenced by the tax expense associated with the divestitures of the dialysis clinics in the USA. As the goodwill attributable to the divested clinics is not considered for tax purposes, the sale resulted in a loss of € 2 million after tax. Excluding this effect the tax rate was 36.9 %.

Minority interest was € 143 million (H1 2005: € 115 million). 94 % was attributable to the minority interest of Fresenius Medical Care.

Group net income grew by 39 % at actual rates and by 36 % in constant currency to € 140 million (H1 2005: € 101 million). This result includes one-time expenses of € 19 million, primarily for the refinancing of debt as well as for expenses related to the stock option accounting change. Thus, approximately 70 % of the expected one-time expenses for the full-year 2006 are already included in the Group net income.

Earnings per ordinary share rose to € 2.75 (H1 2005: € 2.46) while earnings per preference share rose to € 2.77 (H1 2005: € 2.48). This is an increase of 12 % for both share classes (9 % in constant currency). The average number of shares grew to 50,852,320 mainly due to the share issue in December 2005.

Investments
Fresenius Group spent € 225 million for property, plant and equipment and intangible assets (H1 2005: € 115 million). Acquisition spending increased to € 3,408 million due to the acquisition of Renal Care Group (H1 2005: € 227 million).

Cash flow
Operating cash flow increased by 17 % to € 385 million (H1 2005: € 329 million). The key driver was the significant improvement in earnings whereas the tax expense associated with the divestitures of the dialysis clinics had a negative effect. Cash flow before acquisitions and dividends was € 172 million (H1 2005: € 224 million). The acquisition of Renal Care Group was financed through bank debt.

Solid balance sheet structure
Total assets increased by 28 % to € 14,831 million (December 31, 2005: € 11,594 million). In constant currency, total assets grew 34 %. The substantial increase is mainly related to the Renal Care Group acquisition which was consolidated in the balance sheet for the first time as of March 31, 2006. Current assets increased by 10 % to € 3,871 million (December 31, 2005: € 3,531 million). Non-current assets were € 10,960 million (H1 2005: € 8,063 million), an increase of 36 %. This was primarily due to the goodwill resulting from the Renal Care Group acquisition.

Group debt increased to € 6,154 million (December 31, 2005: € 3,502 million) due to financing of the Renal Care Group acquisition. As of June 30, 2006, the net debt/EBITDA ratio was 3.3 (December 31, 2005: 2.3).

Shareholders' equity including minority interest grew 5 % to € 5,380 million (December 31, 2005: € 5,130 million), driven by the very good earnings development. Given the debt financing of the Renal Care Group acquisition, the equity ratio (including minority interests) decreased to 36.3 % (December 31, 2005: 44.2 %).

Employees
As of June 30, 2006, the Group had 100,196 employees worldwide (December 31, 2005: 91,971). The increase of 8,225 employees is primarily due to the acquisition of Renal Care Group.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies for the treatment of the immune system. 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 has successfully continued its clinical study program. The company reported encouraging results of a phase IIa study with the trifunctional antibody removab® in the treatment of ovarian cancer patients. Based on these results, Fresenius Biotech is planning to start a European phase II study for this indication in the second half of 2006.

A phase II study on breast cancer started in March 2006. About 40 patients will be included in the trial. A phase II study for the treatment of gastric cancer with approximately 50 patients started in June 2006. The results from the malignant ascites phase II/III study are expected at the end of this year.

For the full year 2006, Fresenius Biotech continues to expect an EBIT in the range of € -45 to -50 million, largely due to the higher expenses for expanded clinical study program.

The Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of products and services for patients with chronic kidney failure. As of June 30, 2006, Fresenius Medical Care (incl. Renal Care Group and after divestitures) was serving 161,675 patients in 2,078 dialysis clinics.



* before one-time expenses, expenses related to the stock option accounting change and the effect of the FTC-related clinic divestitures in the USA

• Strong sales and earnings growth in all regions
• Renal Care Group integration well under way and on track
• Outlook for 2006 upgraded

Fresenius Medical Care achieved strong sales growth of 19 % to US$ 3,912 million (H1 2005: US$ 3,283 million). This was driven by both the excellent operating performance and the first-time consolidation of Renal Care Group in the income statement. Organic growth reached 9 %. Sales in dialysis care increased by 24 % to US$ 2,924 million (H1 2005: US$ 2,363 million). In dialysis products, Fresenius Medical Care achieved sales of 988 million US$ (H1 2005: US$ 920 million), an increase of 7 % (10 % in constant currency).

In North America, Fresenius Medical Care increased sales by 24 % to US$ 2,754 million (H1 2005: US$ 2,215 million). Organic growth reached 8 %. Sales outside North America ("International") grew by 8 % (12 % in constant currency) to US$ 1,158 million (H1 2005: US$ 1,068 million).

Net income increased by 10 % to US$ 246 million (H1 2005: US$ 223 million). This result includes one-time expenses of US$ 20 million primarily for the refinancing of Fresenius Medical Care debt, for expenses related to the stock option accounting change as well as for the after-tax loss on the divestitures of dialysis clinics in the USA. Excluding the above effects net income was up 19 % to US$ 266 million.

Based on the strong performance in the first half of 2006, Fresenius Medical Care upgrades its guidance for the full year 2006. After expecting to report a revenue of about US$ 8.1 billion, the company now expects a revenue for 2006 of about US$ 8.3 billion.

Fresenius Medical Care also upgrades its outlook for reported net income for 2006. After expecting a net income between US$ 515 million and US$ 535 million, the company now expects to report a net income of at least US$ 542 million, which represents an increase of at least 15% over the 2005 level.

In order to show the underlying performance of Fresenius Medical Care, the guidance provided does not take into effect any expected one-time items and the stock option accounting change. After previously assuming the after-tax impact of one-time items and the stock option accounting change to be about US$ 60 million Fresenius Medical Care now expects this impact to be about US$ 40 million for the full year 2006.

For further information, please see Fresenius Medical Care's Investor News 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.

• Strong organic sales growth of 8 %
• Record EBIT margin of more than 15 % in the second quarter
• Sales and earnings outlook for 2006 raised

Fresenius Kabi's sales increased by 15 % to € 937 million (H1 2005: € 818 million). The company achieved strong organic growth of 8 %. Acquisitions, primarily Clinico and the first-time consolidation of Pharmatel, contributed 4 % to sales. Currency translation added a further 3 %.

Sales in Europe (excluding Germany) increased by 9 %, in Germany by 5 %. Fresenius Kabi did extremely well in the emerging markets outside Europe and achieved sales growth of 44 % in Asia-Pacific, 36 % in Latin America and 25 % in the other regions. Organic growth in the regions outside Europe was well into the double digits.

Fresenius Kabi showed an excellent performance at the EBIT level, with an increase of 26 % to € 139 million (H1 2005: € 110 million). The EBIT margin improved by 140 basis points to 14.8 % (H1 2005: 13.4 %). In the second quarter, the EBIT margin reached a new record level of 15.1 %. Net profit rose by 18 % to € 60 million (H1 2005: € 51 million). This already includes one-time expenses of € 11 million for the early redemption of the 2003 Eurobond.

Based on the excellent performance in the first half, Fresenius Kabi raises its EBIT margin outlook for the full year 2006 from previously 14.5-15.0 % to now >15 %. The company now expects sales growth of 11 to 12 % in constant currency. Previously, growth of around 10 % had been projected.

Fresenius ProServe
Fresenius ProServe is a leading German hospital operator with more than 50 facilities. Moreover, the company offers engineering and services for hospitals and other health care facilities as well as for the pharmaceutical industry.

• Very good performance in hospital operations
• Strong order intake in the engineering & services businesses
• Outlook for 2006 fully confirmed

Fresenius ProServe achieved excellent financial results. Sales grew by 3 % to € 974 million (H1 2005 incl. HELIOS Kliniken: € 942 million). Organic growth amounted to 4 %. On a comparable basis, EBIT increased by 15 % to € 62 million (H1 2005 incl. HELIOS Kliniken: € 54 million).

Sales in hospital operations (HELIOS Kliniken Group) amounted to € 767 million (H1 2005: € 765 million). Organic growth was 2 %. EBIT increased to € 56 million, the EBIT margin improved to 7.3 % (H1 2005 incl. HELIOS Kliniken: € 48 million and 6.3 %). The integration of WKA into HELIOS Kliniken Group was successfully completed. The focus is now on continued efficiency improvements at the WKA clinics and on further growth through privatization in the German hospital market.

Sales in the engineering and services business (VAMED, Pharmaplan) increased 17 % to € 207 million (H1 2005: € 177 million). EBIT rose 50 % to € 9 million (H1 2005: € 6 million). Order intake and order backlog continued to develop very positively. Order intake increased by 19 % to € 185 million (H1 2005: € 156 million). Order backlog rose 14 % to € 409 million as of June 30, 2006 (December 31, 2005: € 360 million).

In March 2006, HELIOS Kliniken agreed to acquire HUMAINE Kliniken GmbH. HUMAINE operates six acute and post-acute care hospitals with a total of 1,850 beds. The transaction is expected to be completed in the third quarter. The acquisition of HUMAINE will be accretive to Fresenius Group's earnings per share in the fiscal year 2006 already.

Fresenius ProServe confirms its 2006 full-year outlook and expects revenue growth of 1 to 3 % before acquisitions, based on 2005 revenues including HELIOS of € 2,009 million. EBIT is forecast to rise to € 140 to 150 million (2005 incl. HELIOS: € 125 million).

Video Webcast
As part of the publication of our results for the first half of 2006, an analyst conference will be held at the Fresenius headquarters in Bad Homburg on August 3, 2006 at 1:30 p.m. CEDT (7.30 a.m. EDT). You are cordially invited to follow the conference in a live broadcast on our website under Investor Relations / Presentations. Following the meeting, a recording of the conference will be available as video-on-demand.

# # #

Fresenius Group in Figures
Consolidated statement of income (US GAAP) (unaudited)
see PDF-File

From November 15th to 18th, researchers, developers and inventors will once again be invited by the Fresenius Health Care Group to present their ideas at the Fresenius Inventors' Fair in conjunction with the world's largest medical trade fair MEDICA in Dusseldorf. The exhibitors with the three best ideas will be recognized by the Health Care Group with the Fresenius Inventor's prize worth 10,000 Euro in total. Registration for the 9th Fresenius Inventors' Fair is now open.

The Fresenius Inventors' Fair offers exhibitors the opportunity to present their developments to a large professional audience and to the industry as a whole. Fresenius' aim is to assist researchers in finding companies who can further develop their ideas or bring them to the market. This ensures that the inventions benefit the maximum number of patients instead of, as is often the case, disappearing into a drawer somewhere. The experience of previous participants has shown that many researchers at past Inventors' Fair are able to successfully make contact with companies. Last year, there were more than 137,000 guests at MEDICA from Germany and abroad.

Fresenius will provide 20 selected participants with exhibition space and stands free of charge. Applicants with inventions that are truly innovative and have reached a certain stage of development have the best chances of being awarded an exhibition space. A jury of industry professionals will select the winners of the Inventors' Prize and the prizes will be awarded to the winners at his or her stand on the opening day of the trade fair. In the past, participants have included doctors and researchers from institutes of higher education as well as engineers, students, nurses, caregivers as well as patients and their families.

Interested developers and inventors can download application forms at www.fresenius-erfindermesse.de or can request them from:

Fresenius AG
Daniela Hegemann
Email: daniela.hegemann@fresenius.de
Fax: +49 (0) 6172-608-2294

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006, the company expects sales of around € 10.7 billion. On June 30, 2006 the Fresenius Group had 100,196 employees worldwide. For more information, visit www.fresenius-ag.com.

HELIOS Kliniken GmbH, a subsidiary of Fresenius AG, has obtained antitrust approval from the German antitrust authorities for the acquisition of a majority stake of HUMAINE Kliniken, announced in March. The transaction will be completed shortly.

HUMAINE operates six acute and post acute care hospitals in the fields of neurology, oncology and traumatology with a total of 1,850 beds. The majority of beds (1,530) is in the acute care sector. HUMAINE operates two major regional hospitals with about 600 beds each.

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006, the company expects sales of around € 10.7 billion. On June 30, 2006 the Fresenius Group had 100,196 employees worldwide. For more information, please visit our website.

From November 15th to 18th, the ninth edition of the Fresenius Inventors' Fair at MEDICA in Dusseldorf will once again give creative researchers and developers the support they need to successfully bring their inventions to the market. Two such inventors are SAP and IT professional Michael Strobel and industrial engineer Andreas Dober. After receiving third place at the Fresenius Inventors' Fair 2004, they have seen their invention go from the drawing board to the hospital ward.

"The fair offered us an attractive venue to present our idea to our already existing clients," said Strobel. "Stating that Hydix placed third at the Fresenius Inventors' Fair 2004 in our marketing material has also been very advantageous for us." Together the two designed Hydix, a mobile wash stand complete with hot and cold running water and drainage for bed-ridden patients. Today, Hydix is used in hospitals in Germany, England, Turkey, Dubai and Kuwait and negotiations are underway with hospitals in Korea, Chile and Mexico.

Johannes Hoyer, who won first prize for his ground-breaking Nestling, also says that winning the Inventors' Prize has been a significant help in taking his invention Nestling to the next level. Nestling offers an alternative to traditional incubators that "nestles" around the mother's body allowing for contact between mother and child. At the same time, it monitors vital functions and provides all the additional medical support of an incubator. "The Inventors' Prize and the Fresenius Inventors' Fair have helped me establish very valuable contacts that have led to taking Nestling to the next development stage," reported Hoyer. A leading Russian medical supplies manufacturer looking for just such an invention in the area of premature baby care initiated contact with Hoyer at the Inventors' Fair and there are also ongoing discussions underway with an Israeli company seeking to implement his invention.

Registration for the 9th Fresenius Inventors' Fair is now open. Fresenius will provide 20 selected participants with exhibition space and stands free of charge at the world's largest medical trade fair MEDICA in Dusseldorf. Applicants with inventions that are truly innovative and have reached a certain stage of development, have the best chances of being allotted an exhibition space. These 20 applicants will then be judged by a jury of industry professionals who will select the three best ideas to be awarded the Inventors' Prize worth 10,000 Euro in total. The prizes will be awarded at the inventors' stands on the opening day of the trade fair. In the past, participants have included doctors and researchers from institutes of higher education as well as engineers, students, nurses, caregivers and even patients and their families.

The Fresenius Inventors' Fair is a forum allowing inventors to present their developments to a large professional audience and to the industry as a whole. Ultimately, the aim of the competition is to help innovative ideas reach the market so that they benefit the maximum number of patients. Last year, there were more than 137,000 guests at MEDICA from Germany and abroad.

Interested developers and inventors can download application forms at www.fresenius-erfindermesse.de  or can request them from:

Fresenius AG
Daniela Hegemann
E-mail: daniela.hegemann@fresenius.de
Fax: +49-6172-608-2294

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006, the company expects sales of around € 10.7 billion. On June 30, 2006 the Fresenius Group had 100,196 employees worldwide. For more information, please visit our website.

The Management Board and Supervisory Board of Fresenius AG will propose to its shareholders in an extraordinary general meeting on December 4, 2006, to convert the Company's legal form from a German AG (Aktiengesellschaft) into a European Company (Societas Europaea – SE). This is a public limited-liability company under European law. At the same time, the shareholders will be asked to approve a share split that triples the number of shares issued.

After the successful expansion of the Group's international business and the strong growth in recent years, the proposed conversion into a European Company is a consistent step in the company's development. The SE is a modern legal form based on European law which will underline the Group's international focus and facilitate an open and international corporate culture at Fresenius.

As a European Company, Fresenius remains committed to high-quality and efficient corporate governance practices. The conversion does not have any effect on the Company's corporate structure and management organization. The two-tier system consisting of Management Board and Supervisory Board will remain unchanged. The Supervisory Board of Fresenius SE will continue to have twelve members. However, employee representatives from various European countries will be represented on the Supervisory Board. Currently, only German employee representatives serve on the Company's Supervisory Board. The same size of the Supervisory Board ensures that the efficiency of the Company's corporate governance will be preserved. Without the proposed conversion, Fresenius would have to increase the number of Supervisory Board members to twenty due to the increased number of German employees.

Fresenius will continue to have its registered office in Germany. The conversion into an SE does not lead to a liquidation of the company or to the formation of a new legal entity. The Company's legal and economic identity will be preserved. In addition, the conversion does not result in any tax consequences for Fresenius. All shareholder's stakes in Fresenius will remain unchanged.

"The European Company enables us to reflect the international focus of our business in the legal form while we continue our well-proven corporate governance. At the same time, the SE assures the representation of our European employees on the Supervisory Board", says Dr. Ulf M. Schneider, Chairman of the Management Board of Fresenius AG.

The proposed share split is intended to promote trading activity in Fresenius shares and to increase the shares' attractiveness for a broader group of investors. Fresenius share prices have increased significantly in recent years: Since the end of 2004, the share prices of the ordinary share and the preference share have almost doubled. The preference share price is currently one of the highest in Germany's HDAX index.

The subscribed capital of Fresenius AG currently amounts to € 131.5 million*. It is divided into 25,688,455 ordinary shares and 25,688,455 preference shares. Through a conversion of capital reserves, the subscribed capital is first increased to € 154.1 million. The subscribed capital is then divided into 77,065,365 ordinary shares and 77,065,365 preference shares. The new proportionate amount of the subscribed capital will be 1 € per share. After the share split, every holder of an ordinary share will hold three ordinary shares and every holder of a preference share will hold three preference shares. As a result of the share split, the price level will be reduced arithmetically without affecting the overall value for shareholders.

* including the capital increase from authorised capital against contribution in kind in the amount of € 903,884.80 in the course of the acquisition of HUMAINE Kliniken GmbH, which yet has to be registered in the commercial register

# # #

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. In 2006, the company expects sales of around € 10.7 billion. On June 30, 2006 the Fresenius Group had 100,196 employees worldwide.

Fresenius Medical Care AG & Co. KGaA today announced that it has signed a definitive agreement to acquire the worldwide phosphate binder business (PhosLo) from Nabi Biopharmaceuticals Inc. (Nabi). PhosLo is a calcium acetate phosphate binder for oral application in end-stage renal disease patients that has total product line revenues in the U.S. of approximately $40 million. The total consideration paid in the transaction will be $65 million cash at closing, royalties on a new potential product formulation plus milestone payments. The milestone payments consist of $10 million expected to be paid in 2007 and $10 million to be paid over the next two to three years, contingent upon the achievement of certain performance milestones.

Excess phosphate consumed with food is normally removed by the kidneys in a process that can only partially be replaced by dialysis in patients with chronic kidney failure. Too much phosphate in the blood can result in a number of adverse events, including bone disease, thyroid problems and vascular calcification. The risk of such damage in end-stage renal disease patients can be lowered by regularly taking phosphate binders. Currently, the phosphate binder market exceeds $500 million worldwide.

Dr. Ben Lipps, Chairman of the Management Board and Chief Executive Officer commented, "Our acquisition of the PhosLo product line represents an important strategic step. With PhosLo, we are able to expand our clinical therapy offerings using safe, effective and proven drugs. We plan to use PhosLo as part of our overall integrated "pharma-tech" therapy to better manage bone mineralization during dialysis treatment. This acquisition enhances our growth opportunities in this important new initiative for Fresenius Medical Care."

The transaction is subject to customary closing conditions including the expiration of the applicable waiting period under the Hart Scott Rodino Antitrust Act. The Company anticipates closing this transaction in 2006.

# # #

PhosLo is a trademark of Nabi Biopharmaceutical Inc.

About Nabi Biopharmaceuticals

Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop and market products that fight serious medical conditions. Nabi Biopharmaceuticals is focused on developing products that address unmet medical needs and offer commercial opportunities in its core business areas: hepatitis and transplant, kidney disease (nephrology), Gram-positive bacterial infections and nicotine addiction. The company is headquartered in Boca Raton, Florida. Nabi Biopharmaceuticals is listed on the NASDAQ (NABI).

For more information about Nabi Biopharmaceuticals visit the website: www.nabi.com.  


About Fresenius Medical Care

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,078 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,675 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

For more information about Fresenius Medical Care visit the website: www.fmc-ag.com.

Fresenius Medical Care AG & Co. KGaA (or "Company") today announced that its subsidiary, Fresenius Medical Care Holdings Inc. (FMC-NA) has entered into a new sourcing and supply agreement with Amgen USA, Inc. (Amgen) under which Amgen will supply FMC-NA's commercial requirements in the United States and Puerto Rico for erythropoiesis stimulating proteins for dialysis patients, inclusive of EPOGEN (Epoetin alfa) and Aranesp (Darbepoetin alfa). Amgen is the sole supplier of these products for use with dialysis patients in the U.S. The new sourcing and supply agreement runs from October 1, 2006 to December 31, 2011, and replaces the previous product purchase agreement between the parties. In addition, the companies will explore collaborations to develop new product formulations to further enhance standards of care.

EPOGEN and Aranesp contain artificially produced hormone which stimulate the production of red blood cells. Dialysis patients cannot produce this hormone on their own; therefore, artificial erythropoietin is administered during dialysis treatments to regulate anemia.

Dr. Ben Lipps, Chairman of the Management Board and Chief Executive Officer of the Company commented, "We selected Amgen as our sole supplier based on more than ten years of demonstrated clinical efficacy and safety with Epogen which has led to significant clinical outcome improvements in anaemic dialysis patients. Amgen and Fresenius Medical Care are well known for their commitment to developing and establishing new therapies for the benefit of patients with end-stage renal disease worldwide. Fresenius Medical Care and Amgen will also explore opportunities to collaborate to further improve patient outcomes."

# # #

Aranesp and Epogen are trademarks of Amgen Inc.

Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,078 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,675 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p). For more information about Fresenius Medical Care visit the website: www.fmc-ag.com.  

About Amgen
Amgen discovers, develops and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science's promise by bringing safe and effective medicines from lab, to manufacturing plant, to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, and other serious illnesses. With a broad and deep pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people's lives. For more information about Amgen visit the Company's website at www.amgen.com.  

About EPOGEN®
EPOGEN® (Epoetin alfa) is a recombinant protein with the same mechanism of action as endogenous human erythropoietin, a protein produced by the kidneys to stimulate the production of oxygen-transporting red blood cells. Patients with end-stage renal disease do not produce adequate amounts of erythropoietin and consequently suffer from the energy-draining signs and symptoms of chronic anemia. Epogen is indicated for patients with chronic kidney disease and anemia receiving dialysis.

About Aranesp®
Introduced in 2001, Aranesp® (darbepoetin alfa) is a recombinant erythropoietic protein that stimulates production of oxygen-carrying red blood cells, with greater biological activity and a longer half-life than Epoetin alfa. Aranesp is indicated for patients with chronic kidney disease and anemia receiving dialysis and not on dialysis and chemotherapy-induced anemia.