• Sales: € 3.46 billion
  + 5 % at constant currency, - 8 % at current exchange rates
• EBIT: € 390 million
  + 7 % at constant currency, - 7 % at current exchange rates
• Net income: € 70 million
  + 45 % at constant currency, + 27 % at current exchange rates
• Exchange rates affect sales and earnings
• Operating cash flow and free cash flow at record level
• Continued margin improvements at Fresenius Medical Care
• Operating improvement at Fresenius Kabi
• Program initiated to reduce costs and increase profitability at Fresenius ProServe

In the first half of 2003 the Fresenius Health Care Group was substantially impacted by exchange rate fluctuations in the currency translation. At constant currency, sales increased 5 % in the first half of 2003. At current rates sales decreased 8 % to € 3,456 million mainly due to the strengthening of the euro against the dollar. Operating income (EBIT) increased 7 % at constant currency. At current rates, EBIT was 7 % lower than in the same period of 2002. Net income of the Fresenius Group grew 27 %, 45 % at constant currency.

Group outlook on year-end 2003
In the first half of 2003, health care systems were affected by cost-cutting, delayed investments and price pressure. The Fresenius Group showed positive results despite this difficult environment. With 5 % sales growth in the first half of 2003, the Group now anticipates a mid single-digit revenue growth rate at constant currency for the full year 2003.

The Fresenius ProServe business segment initiated a program at Wittgensteiner Kliniken AG to reduce costs and increase profitability. With these measures Fresenius ProServe is overcoming at an early stage challenges in the German health care system, and is supporting its strong position in the German hospital market. The expected one-time expenses of this program are € 25 million (see also page 8).

Before these one-time expenses, the Managing Board maintains its forecast that at constant currency, net income will increase at a double-digit rate. This increase will be mainly driven by the good performance of Fresenius Medical Care and Fresenius Kabi. After these one-time expenses, net income at constant currency will remain at previous year's level.

Sales
Sales of the Fresenius Group decreased by 8 % in the first half of 2003 to € 3,456 million (first half 2002: € 3,749 million) due to exchange rate fluctuations. Organic growth was 3 %. Acquisitions contributed 2 % to this growth. Exchange rates had a 13 % negative impact on sales development. On average the 23 % weaker US dollar and 33 % weaker Argentinian peso had a negative impact on sales due to currency translation.

The region with the strongest sales was North America with 51 %, followed by Europe with 38 %. Asia-Pacific had 7 % and Latin America and other regions a total of 4 %. In almost all the regions the Group increased sales at constant currency. Even with the continuing difficult economic climate in Latin America, sales increased by 29 % at constant currency.

Fresenius Kabi and Fresenius ProServe increased their sales contribution compared to the first half of 2002. Due to the weaker US dollar the sales contribution of Fresenius Medical Care in the first half of 2003 was 70 %.

Earnings
The stronger euro was also reflected in the earnings of the Fresenius Group. At constant currency, earnings before interest, income taxes, depreciation and amortization (EBITDA) increased by 5 % compared to the previous year. At current rates EBITDA was € 543 million in the first half of 2003, 8 % below previous year's € 592 million. EBIT increased 7 % at constant currency. At current rates, EBIT of € 390 million in the first half of 2003 was 7 % below previous year's € 420 million.

The 87 % increase in EBIT of Fresenius Kabi had a positive impact on group earnings. This increase is the result of the successful implementation of restructuring measures in 2001 and 2002 and the strong operating performance.

Net interest decreased to € -125 million in the first half of 2003 from € -165 million in the first half of 2002.

In the following table the previous year's income statement has been adjusted according to Statement of Financial Accounting Standards No. 145 which stipulates that as of January 1, 2003 the gains and losses from the early redemption of financial instruments are no longer classified as extraordinary. This rule requires the reclassification of € 22 million of expenses before taxes (€ 13 million after taxes and related minority interests of € 8 million) for the early redemption of Fresenius Medical Care's trust preferred securities which were to come due in 2006.

The decrease of net interest is mainly due to changes in US GAAP. Further, net interest was positively influenced by the translation of US dollar to the euro, since a large portion of Fresenius Medical Care's bank loans are in US dollars.

The tax ratio was 39.2 % in the first half of 2003 compared to 38.0 % in the first half of 2002.

Minority interests decreased to € 91 million from € 103 million in the first half of 2002. This is a result of exchange rate effects. 93 % of minority interests involve Fresenius Medical Care.

Fresenius increased net income considerably. It grew 27 % from € 55 million in the first half of 2002 to € 70 million in the first half of 2003. At constant currency the increase was 45 %.

Earnings per ordinary share were € 1.70, up from € 1.33 in the same period of 2002. Earnings per preference share were € 1.72, up from € 1.35 in 2002. This was an increase of 28 % and 27 %, respectively (at constant currency: 46 % and 45 %).

Capital expenditure and acquisitions
Fresenius spent € 157 million in the first half of 2003 for capital expenditure and acquisitions. This is a reduction of 39 % compared to € 257 million in the first half of 2002 and was in line with Company planning. In 2001 and 2002 Fresenius made significant investments in increased capacity of production plants and further market expansion.

Of the total investments, 72 % was for capital expenditure, 28 % was for acquisitions. Capital expenditure was € 113 million, 39 % below the first half of 2002. Acquisitions were
€ 44 million in the first half of 2003 compared to € 72 million in the first half of 2002.

Acquisitions in the first half of 2003 were mainly dialysis clinics purchased by Fresenius Medical Care. Capital expenditure was mainly used for opening and equipping new dialysis clinics, especially in the United States, for expanding and modernising existing clinics and for the further expansion and optimization of production plants.

49 % of capital expenditure was made in Europe, 41 % in North America and 10 % elsewhere.

Cash flow
The Fresenius Group's operating cash flow and free cash flow were at record levels. Operating cash flow was € 311 million in the first half of 2003 (first half 2002: € 296 million). This 5 % increase is mainly due to continued improvement in receivables management. The free cash flow before acquisitions and dividends also improved and rose by 35 % to a record figure of € 208 million (first half 2002: € 154 million). This increase resulted from a lower investment volume of € 103 million (first half 2002: € 142 million). After net cash used for acquisitions of € 38 million and dividends of € 107 million Fresenius achieved an excellent free cash flow of € 63 million (first half 2002: € -6 million).

Asset and equity structure
Balance sheet total of the Group was € 8,867 million, a decrease of € 48 million (1 %) compared to December 31, 2002 (€ 8,915 million). This is solely due to currency effects. At constant currency balance sheet total increased 4 % over the previous year. This was mainly due to the reduction in the receivables securitization program of Fresenius Medical Care from US$ 445 million to US$ 249 million which led to a corresponding increase in accounts receivable.

Shareholders' equity including minority interests was € 3,217 million at June 30, 2003 compared to € 3,369 million as at December 31, 2002. This was a result of exchange rate fluctuations; at constant currency there was an increase of 2 %. Equity ratio including minority interests was 36.3 % at June 30, 2003 compared to 37.8 % as at December 31, 2002.

Liabilities from bank loans, Eurobonds, commercial paper and trust preferred securities were € 3,339 million on June 30, 2003. (December 31, 2002: € 3,283 million). This increase was the result of Fresenius Medical Care using existing credit lines to reduce the receivables securitization program. US dollar exchange rate fluctuations had an opposite effect.

Debt, including liabilities from the receivables securitization program of Fresenius Medical Care decreased from € 3,707 million as at December 31, 2002 to € 3,557 million on June 30, 2003.

The key ratio net debt/EBITDA was unchanged at 3.0 on June 30, 2003, the same as at the end of 2002.

Employees
On 30.6.2003, the Fresenius Group had 65,626 employees worldwide. This was around 3 % or 1,988 people more than at the end of 2002.

Fresenius Biotechnology
In biotechnology, Fresenius is active in the field of immune and cell therapies. Various clinical trials for the immunotherapeutical treatment of cancer are currently being carried out. The results of a phase I/II study for treatment of ovarian cancer patients with symptomatic ascites are to be presented at the European Cancer Conference (ECCO) in September.

The Business Segments

Fresenius Medical Care
Fresenius Medical Care AG is the world's leading provider of products and services for patients with chronic kidney failure.

In the first half of 2003, Fresenius Medical Care increased sales 9 % to US$ 2,666 million (previous year: US$ 2,441 million). 71 % of sales were achieved in North America, 29 % elsewhere. At constant currency, Fresenius Medical Care increased sales 5 % in the first half of 2003.

Dialysis care business contributed 72 % to sales and dialysis products 28 %. Sales of dialysis products increased 15 % to US$ 743 million (first half 2002: US$ 648 million). The dialysis care business grew 7 % to US$ 1,922 million (first half 2002: US$ 1,793 million). The main source of growth was the increased number of dialysis treatments. Fresenius Medical Care performed approximately 8.7 million treatments in the first half of 2003, an increase of 9 % year over year. As at June 30, 2003, Fresenius Medical Care provided treatment to around 115,800 patients in 1,510 dialysis clinics, 7 % more than in the first half of 2002.

EBIT of Fresenius Medical Care in the first half of 2003 increased 2 % to US$ 353 million. Net income increased 8 % to US$ 149 million. In accordance with the new US-GAAP Accounting Standard SFAS 145, the loss from the early redemption of the Trust Preferred Securities in the first quarter of 2002 of $ 12 million after taxes (20 million before taxes) had to be reclassified from extraordinary to operating earnings. Excluding the redemption loss, net income in the first half of 2002 would have been $ 149 million.

For the year 2003, the Fresenius Medical Care reconfirms its outlook and expects mid single digit revenue growth (in constant currency) and net income growth in the high single digit to low double digits range. As mentioned in the first quarter of 2003 Fresenius Medical Care expects to achieve net income growth for the full year 2003 near the lower end within the predicted range due to the increased risks and unpredictability.

Fresenius Medical Care's US dollar sales of US$ 2,666 million were € 2,718 million after conversion into euros. This is a decrease of 11 % compared to previous year's € 2,413 million. EBIT decreased 17 % to€ 319 million (first half 2002: € 383 million) due to currency translation.

For further information please see press release.

Fresenius Kabi
The portfolio of Fresenius Kabi focuses on the nutrition and infusion therapy of patients in the hospital, many of whom are seriously ill, and in ambulatory care, as well as on infusion and transfusion technology.

^{* The previous year's figures have been adjusted to include the newly-assigned activities of the business segment Fresenius HemoCare (transfusion and infusion technology) effective January 1, 2003.}

In the first half of 2003, Fresenius Kabi's sales were € 718 million, substantially the same as in the previous year (€ 717 million). This is the result of currency translation effects of -6%. The organic growth of Fresenius Kabi increased 7 %. This is fully in line with our expected growth of 6 to 7 % for 2003 as a whole. Furthermore, divestments (the sale of the company ProReha effective August 1, 2002) reduced sales by 1 percentage point.
The hospital business had € 574 million in sales, which was 80 % of total sales (first half 2002: € 568 million). The Ambulatory Care business had sales of € 145 million (first half 2002: € 149 million), which was 20 % of total sales.

Fresenius Kabi achieved an EBIT of € 71 million in the first half of 2003 compared to the previous year's figure of € 38 million. Fresenius Kabi achieved an EBIT margin of 9.9 % in the first half 2003 compared to 5.3 % in the first half of 2002. This also exceeds the EBIT margin for 2002 as a whole (6.7 %).

Our restructuring of production facilities, particularly in Uppsala, Sweden, and the good operating performance had a positive impact on earnings in the first half of 2003. These measures will continue to contribute to the future earnings growth of Fresenius Kabi.

In the important European market, the Company achieved a single-digit growth rate. In all other regions, Fresenius Kabi achieved double-digit organic growth in the first half of 2003.

For the full year 2003, Fresenius Kabi expects to achieve an organic growth of 6 to 7 %. EBIT of the second half of 2003 is expected to be in the range of the first half of the year.

Fresenius ProServe
Fresenius ProServe offers services for the international health care systems. The range of services includes hospital management, the planning and construction of hospitals as well as of pharmaceutical and medical-technical production plants.

Fresenius ProServe increased sales 5 % to € 336 million in the first half of 2003 (first half 2002: € 321 million). 85 % of sales were from the Healthcare business, 15 % from the Pharma Industry business. Sales were € 287 million in the Healthcare business, an increase of 12 % (first half 2002: € 256 million). Sales were € 49 million in the Pharma Industry business compared to € 65 million in the previous year due to a general investment caution of the pharma industry and delays in project handling.

In the Healthcare business, sales generated by services increased 31 % to € 239 million (first half 2002: € 183 million). This was driven by the consolidation of newly-acquired hospitals (mainly Klinikum Rhein-Sieg in Siegburg). Project sales in the healthcare business were € 48 million compared to € 73 million in the first half of 2002 due to delays in project handling.

Fresenius ProServe's EBIT in the first half of 2003 was € 10 million compared to € 8 million in 2002. However, Fresenius ProServe did not achieve its earnings target for the second quarter. This is mainly due to the hospital management business in Germany. The bed utilization rate declined to 81 % compared to 85 % for the same period of the previous year. In addition, delays in the project business had an impact on earnings.

A major study of Wittgensteiner Kliniken AG, which is part of Fresenius ProServe, was completed in July 2003. This study shows that in addition to the measures carried out in the past one and a half years, there is additional potential to reduce costs and increase efficiency. Fresenius ProServe expects to fully utilize this potential and create a solid basis for Wittgensteiner Kliniken to achieve sustainable growth. The implementation of the measures, including further staff reductions, will result in one-time expenses of € 25 million before tax. It is expected that Wittgensteiner Kliniken will achieve annual cost savings of € 20 - 25 million which will become fully effective in the 2005 financial year.

Assuming a reserve is created for the one-time expenses in 2003, Fresenius ProServe expects, that it will have a single-digit negative EBIT for the full year 2003. Sales for 2003 are expected to increase to approximately € 800 million.
These measures will significantly strengthen the position of Wittgensteiner Kliniken in the German hospital market.

Fresenius Medical Care AG ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's largest provider of Dialysis Products and Services, is pleased to announce the appointment of Lawrence Rosen (45) as Chief Financial Officer. He will start in his new position on November 1st, 2003 and will succeed Dr. Ulf M. Schneider (37) who has assumed the position Chief Executive Officer of Fresenius AG.

Lawrence Rosen currently serves as Group Senior Vice President for Corporate Finance and Treasury with Aventis S.A., in Strasbourg, France. In that position he is responsible for all Corporate Finance activities as well as Risk and Cash Management, including Banking and Rating-agency relationships.

Lawrence Rosen has worked for Aventis S.A. and its predecessor companies since 1984 and has served in senior finance and treasury positions in North America, Germany, and France. He holds a Master of Business Administration (MBA) from the University of Michigan, USA and a Bachelor of Science in Economics from the State University of New York at Brockport, USA.

Ben Lipps, the Chief Executive Officer of Fresenius Medical Care AG commented, "We are fortunate to have a person as qualified as Lawrence Rosen to fill the role of Chief Financial Officer. His depth of global experience and track record of corporate financial leadership with Aventis S.A. will provide us with a seamless transition and continued strength in this area. We are looking forward to working with Larry in his new role."

The Fresenius Health Care Group has successfully completed a phase I/II study with the new trifunctional antibody removab®. This antibody was used to treat late-stage ovarian cancer patients with symptomatic ascites, which is an accumulation of fluid in the abdominal cavity caused by tumor cells. The study is the world's first completed trial with a trifunctional antibody.

This phase I/II study was designed to identify potential side effects associated with removab® therapy, to evaluate potential dosing schedules and to obtain first indications regarding efficacy. Results of the completed study demonstrate that the antibody is well tolerated at various doses. Four or five very small doses of the antibody were infused into the patient's abdominal cavity over a period of less than two weeks. The most frequent side effects observed in the trial were increased temperature and nausea. In addition, initial indications observed from this study suggest that removab® is efficacious in killing tumor cells in the ascites fluid and thus prevents the re-accumulation of fluid. All patients responded to the therapy. 22 of 23 patients who previously suffered from ascites were ascites-free on day 37, the last day of the study. A significant decrease in the number of tumor cells detected in the ascites fluid was observed in all patients in the study. The average number of tumor cells detected per one million cells in ascites fluid decreased from 540,000 prior to treatment to 39 following the last infusion.

The head of the clinical trial, Prof. Dr. Rainer Kimmig from The University Hospital of Essen, presented the results of the study yesterday (22.9.) at the European Cancer Conference (ECCO) in Copenhagen. In total, 23 ovarian cancer patients with malignant ascites were treated. Prior to entering the Phase I/II study, all patients had suffered one or more relapses following surgical tumor resection, with consequent tumor development in the abdominal cavity. In most cases, patients had previously undergone one or more courses of chemotherapy. The adhesion molecule EpCAM, the target of the removab® antibody, had been detected on the surface of tumor cells in the abdominal cavity fluid of all patients participating in the study. Production of EpCAM, which is also present in healthy cells, is significantly increased in approximately 90 per cent of ovarian cancer patients. EpCAM can thus be targeted for tumor cell recognition and induction of tumor-specific killing.

Due to the encouraging results of the phase I/II study, Fresenius Biotech is planning to launch two further studies in December 2003 and February 2004. The first study is designed to test the efficacy of the antibody with regard to ovarian cancer metastases and thus increase life expectancy. The second trial will investigate the efficacy of the antibody against ascites in other malignancies.

Assuming successful completion of clinical trials and following consultation with regulatory officials, Fresenius plans potential market launch of removab® in Europe in 2007.

Background information

Trifunctional antibodies
The trifunctional antibodies developed and produced by TRION Pharma, a Fresenius partner, are proteins which specifically bind cancer cells to two different immune cells of the immune system, T-cells and macrophages, thus triggering a process that effectively kills tumor cells. The goal of scientists and clinicians is to eradicate those tumor cells that may still be present in the body following surgical resection of the tumor, preventing the development of ascites or metastases and extending patient survival.

Ascites
Ascites, an accumulation of body fluid in the abdominal cavity, is painful and severely impairs a patient's quality of life. Up to 89 per cent of final-stage ovarian cancer patients develop ascites. Existing palliative treatment methods are unsatisfactory: Puncturing the abdominal cavity (paracentesis) and draining the fluid provides rapid but short-lived relief to the patients. In addition, paracentesis causes patients to lose valuable endogenous proteins. Another approach is to infuse chemotherapeutic agents into the abdominal cavity. This method is not generally accepted due to the severe side effects and limited clinical benefits.

Phase I/II Studies
Phase I studies are aimed at determining the dose and side effects, while phase II studies test the efficacy of the drug treatment.

Fresenius Medical Care AG ("FME") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's largest provider of Dialysis Products and Services, has been informed that Goldman Sachs is managing a sale of 7.68 million Fresenius Medical Care AG preference shares for a group of shareholders in an accelerated bookbuilding offering.

Goldman Sachs and other investors acquired the preference shares from the Company in March of 2000. Since then, these shares have been reflected in the Company's financial statements as issued and outstanding. In addition, these shares were initially subject to a two-year restricted sale agreement, which expired in March of 2002.

Dr. Ben Lipps, the Chief Executive Officer of Fresenius Medical Care stated that, "I am delighted that one of the Company's principal objectives for the 2000 share placement has been achieved. I look forward to more trading in the Company's preference shares, thereby increasing liquidity and trading volume."

Summary third quarter 2003:

• Net Revenues : $ 1,409 million, + 10%
• Operating income (EBIT): $ 197 million, + 18%
• Net income: $ 87 million, + 25%
• Operating Cash Flow : $ 203 million, + 34%
• Free Cash Flow: $ 152 million, + 81%
• The Company confirms its outlook for 2003

Fresenius Medical Care AG (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 third quarter and the first nine months of 2003.

OPERATIONS

Third Quarter 2003:

Fresenius Medical Care AG reports a 25% increase in net income to $ 87 million for the third quarter 2003.

Total revenue for the third quarter 2003 increased 10% (+7% at constant currency) to $ 1,409 million. Dialysis Care revenue grew by 8% to $ 1,018 million (+7% at constant currency) in the third quarter of 2003.
Dialysis Product revenues (including internal sales) increased by 14% to $ 510 million (+8% at constant currency) in the same period. The internal sales increased to $ 119 million after $ 103 million in the third quarter of 2002.

North America:
Revenue rose 3% to $ 978 million, compared to $ 947 million in the same period last year. Dialysis Care revenue in the US increased by 5% to $ 873 million. The average revenue per treatment was at $ 279 in the third quarter of 2003 (Q2 2003: $ 275). North American Dialysis Product revenue, including sales to company-owned clinics, increased 1% to $ 194 million. Product sales to the net available external market grew by 4%.

International:
Revenue was $ 432 million, up 28% (+16% adjusted for currency). Dialysis Care revenue reached $ 146 million in the third quarter 2003, up 35% (+22% currency adjusted). Dialysis Products revenue, including sales to company-owned dialysis clinics, increased 24% to $ 317 million (13% currency adjusted).

Operating Income (EBIT) increased 18% to $ 197 million resulting in an operating margin of 14.0% (Q3 2002: 13.0%). The increase of 100 basis points was mainly due to increased treatments and efficiency improvements in North America but partially offset by pricing pressure in Central Europe. In the second quarter of 2003, the Company achieved an operating margin of 13.5%. The margin in North America and in International increased by 50 basis points compared to the prior quarter.

Earnings per share (EPS) in the third quarter 2003 rose 25% to $ 0.90 per ordinary share ($ 0.30 per ADS), compared to $ 0.72 ($ 0.24 per ADS) in the third quarter of 2002. The weighted average number of shares outstanding during both the third quarter of 2003 and the third quarter of 2002 was approximately 96.2 million.

In the third quarter of 2003, the Company generated $ 203 million in cash from operations (14% of net revenues). A total of $ 51 million (net of disposals) was spent for capital expenditures, resulting in Free Cash Flow before acquisitions for the third quarter 2003 of $ 152 million (11% of net revenues), a solid 81% growth compared with third quarter of 2002 with $ 84 million. A total of $ 22 million in cash was spent for acquisitions. Free Cash Flow after acquisitions was $ 130 million. In the third quarter of 2002, Free Cash Flow after acquisitions was $ 51 million.

First Nine Months 2003:
For a complete overview of the first nine months 2003 please refer to the appendix.

In the first nine months of 2003, net income was $ 237 million, up 14% from the same period in 2002.

In accordance with the new US-GAAP Accounting Standard SFAS 145, the loss from the early redemption of the Trust Preferred Securities in the first quarter of 2002 of $ 12 million after taxes ($ 20 million before taxes) had to be reclassified from extraordinary loss to interest expense and income tax expense. Excluding the redemption loss, net income for the first nine months of 2002 would have been $ 219 million. Net revenue was $ 4,075 million, up 9% from the nine months of 2002. Currency adjusted, net revenue rose 6% from January to September of 2003 compared to 2002. Operating Income (EBIT) increased 8% to $ 550 million resulting in an operating margin of 13.5%. In the nine months of 2003, earnings per ordinary share rose 14% to $ 2.44. Earnings per ordinary ADS for the first nine months of 2003 were $ 0.81.

Cash from operations during the first nine months of 2003 was up 27% or $ 503 million compared to $ 395 million in the first nine months of 2002. A total of $ 129 million was spent for capital expenditures (net of disposals) resulting in a Free Cash Flow before acquisitions for the first nine months of 2003 of $ 374 million compared to $ 238 million in the first nine months of 2002. Free Cash Flow for the first nine months already exceeded the $ 349 million Free Cash Flow generated in the full year 2002. This exceptional performance is primarily driven by strong improvements in working capital management. Net cash used for acquisitions was $ 79 million. Free Cash Flow after acquisitions increased therefore 78% to $ 295 million.

As of September 30, 2003, the Company operated a total of 1,540 clinics worldwide (1,100 clinics/+3% in North America and 440 clinics/+16% International). Fresenius Medical Care AG performed approximately 13.2 million treatments, which represents an increase of 9% year over year. North America accounted for 9.2 million treatments (+7%) and the International segment for 4.0 million (+16%). At the end of the third quarter 2003, Fresenius Medical Care served about 117,600 patients worldwide which represents an increase of 7%. North America accounted for ~81,700 patients (+4%) and the International segment for ~35,900 patients (+14%).


OUTLOOK 2003

For the year 2003, the Company reconfirms its outlook and expects mid single digit revenue growth (in constant currency) and net income growth in the high single digit to low double digit range. As mentioned in the first quarter of 2003, the Company expects to achieve net income growth for the full year 2003 near the lower end within the predicted range.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our results for the third quarter of 2003 improved in all key financial metrics and showed a strong performance of our underlying operations. We achieved another record operating and free cash flow for the third quarter 2003 and we are confident that our global strategy is on the right track. We are well positioned to achieve our full year targets and we can look favourably to the future."

• Sales: € 5.25 billion
  + 6 % at constant currency, - 5 % at actual exchange rates
• EBIT: € 590 million
  + 8 % at constant currency, - 4 % at actual exchange rates
• Net income: € 105 million
  + 38 % at constant currency, + 24 % at actual exchange rates

• Operating cash flow and free cash flow at record levels
• Fresenius Medical Care: strong margin improvement in Q3
• Fresenius Kabi: Strong organic growth and positive earnings development
• Fresenius ProServe: further measures to improve profitability
• Reported figures impacted by exchange rate fluctuations

In the first nine months of 2003 the results of the Fresenius Group were significantly impacted by exchange rate fluctuations in the currency translation. At constant currency, sales increased 6 % for the first nine months of 2003. At actual rates, sales decreased 5 %. Operating income (EBIT) increased 8 % at constant currency and decreased 4 % at actual rates. Net income grew significantly at both constant currency and actual rates (+38 % and +24 % respectively).

Group outlook for the full year 2003
In the first nine months the health care systems were affected by postponed investments, cost-cutting measures and price pressure. In this difficult environment, Fresenius Group achieved further significant improvements in sales and earnings at constant currency. For the full-year 2003 expectations for a mid single digit sales growth remain unchanged.

The largest business segments, Fresenius Medical Care and Fresenius Kabi, both performed very well during the first nine months of 2003. The Group expects this trend to continue in the fourth quarter. Fresenius ProServe's performance during the third quarter 2003 was marked by declining bed utilization rates in the German hospitals, project delays and a general investment caution of the pharma industry. Fresenius ProServe plans to focus its business operations to improve profitability. In addition to the restructuring program initiated in the second quarter for Wittgensteiner Kliniken AG (WKA), Fresenius ProServe will take measures in the current year to reorganize its health care project and Pharma Industry businesses.

The Managing Board maintains its forecast that, at constant currency and before one-time expenses for the WKA program and the reorganization of the health care project and Pharma Industry businesses, the Group's net income will increase at a double-digit rate. Forecast is based on the continued strong performance of Fresenius Medical Care and Fresenius Kabi. After one-time expenses, it is expected that net income at constant currency will show a high single to low double digit rate decrease compared to previous year.

Sales
In the first nine months of 2003, Fresenius Group increased sales at constant currency 6 %. Organic growth was 4 %. Acquisitions contributed 2 %. At actual rates, consolidated sales of € 5,254 million were 5 % lower than previous year's figure (Q1-3/2002: € 5,552 million). Exchange rates fluctuations had a 11 % negative impact on sales, mainly due to the 20 % weaker US dollar.

In all regions, Fresenius expanded its business successfully and increased sales at constant currency. The strongest sales were in North America with 50 % and Europe with 38 % of total sales. Asia-Pacific had 7 %, Latin America 4 % and other regions a total of 1 %. Despite the continuously difficult economic climate in Latin America, sales showed a significant growth of 31 % at constant currency.

Sales contribution of the business segments:

Fresenius Medical Care's reduced proportion of sales is mainly a result of currency translation effects.

Earnings
At constant currency, earnings before interest, income taxes, depreciation and amortization (EBITDA) increased 5 % compared to previous year. Currency translation effects also had a negative impact on Group earnings. At actual rates, EBITDA for the first nine months of 2003 was € 825 million, 6 % below previous year's € 874 million. EBIT increased 8 % at constant currency but decreased 4 % at actual rates to € 590 million (Q1-3/2002: € 617 million).

Fresenius Kabi contributed the largest share to the EBIT increase (+ € 42 million or +65 % compared to previous year). This is thanks to the successful implementation of restructuring measures in 2001 and 2002 and a strong operating performance in the regions.

Net interest expense for the first nine months of 2003 improved to € -186 million compared to € -230 million for the same period in 2002.

In the following table previous year's consolidated statement of income has been adjusted according to Statement of Financial Accounting Standards No. 145 which stipulates that, as of January 1, 2003, the gains and losses from the early redemption of financial instruments are no longer classified as extraordinary. This rule requires the reclassification of € 21 million of expenses before taxes (€ 13 million after taxes and related minority interests of € 8 million) for the early redemption of Fresenius Medical Care's trust preferred securities in February 2002 which were to come due in 2006.

The decrease in net interest expense is equally attributable to the change in US GAAP and to currency translation effects of US dollar into euro, since a large portion of Fresenius Medical Care's bank loans are in US dollars.

The effective tax rate for the first nine month of 2003 was 39.1 % (Q1-3/2002: 38.5 %).

Minority interests decreased to € 141 million from € 153 million for the first nine months of 2002, solely due to exchange rate effects. 96 % of minority interests relate to Fresenius Medical Care.

Net income increased 24 % to € 105 million, compared to € 85 million for the first nine months of 2002. At constant currency, the increase was with 38 % even more significant.

Earnings per ordinary share were € 2.55, up from € 2.06 in the same period of 2002. Earnings per preference share were € 2.57, up from € 2.08 in 2002. This was an increase of 24 % (at constant currency: 38 %).

Capital expenditure and acquisitions
Fresenius spent € 247 million in the first nine months of 2003 on capital expenditure and acquisitions. (Q1-3/2002: € 393 million). This reduction was in line with Company planning. In 2001 and 2002 Fresenius made significant investments to increase the capacity of production plants and further market expansion.

73 % of total investments was for capital expenditure, 27 % was for acquisitions. Capital expenditure was € 180 million, 36 % less than in the same period of 2002. Acquisitions were € 67 million compared to € 110 million in the first nine month of 2002.

Acquisitions related mainly to the purchase of dialysis clinics by Fresenius Medical Care. Capital expenditure was mainly used to equip new dialysis clinics, to expand and modernize existing clinics and to expand and optimize production plants.

Fresenius invested 55 % in Europe, 36 % in North America and 9 % in other regions.

Cash flow
Operating cash flow and free cash flow for the first nine months of 2003 were at record levels. Operating cash flow increased 11 % to € 565 million (Q1-3/2002: € 507 million). This excellent figure resulted from improved receivables management. Free cash flow before acquisitions and dividends increased 47 % to € 399 million (Q1-3/2002: € 272 million). This increase was also due to the significantly lower investment volume of € 166 million (Q1-3/2002: € 235 million). Free cash flow after acquisitions (€ 61 million) and dividends (€ 114 million) tripled to € 224 million (Q1-3/2002: € 72 million). In the third quarter 2003, operating cash flow was € 254 million (Q3 2002: € 211 million) and free cash flow before acquisitions and dividends was € 191 million (Q3 2002: € 118 million), again record levels for a third quarter.

Asset, liability and equity structure
Balance sheet total of the Group was € 8,817 million, a decrease of € 98 million (1 %) compared to December 31, 2002 (€ 8,915 million). This was due to currency effects. At constant currency, balance sheet total increased by 5 %.

Shareholders' equity (including minority interests) was € 3,264 million as of September 30, 2003 compared to € 3,369 million as of December 31, 2002, a decrease of 3 % or € 105 million due to currency translation effects. At constant currency there was an increase of 4 %. Equity ratio (including minority interests) was 37.0 % as of September 30, 2003 compared to 37.8 % as of December 31, 2002.

Bank loans, Eurobonds, commercial paper and trust preferred securities were € 3,181 million as of September 30, 2003 compared to € 3,283 million as of December 31, 2002. The reduction was due to currency translation effects, partially offset by reduction in Fresenius Medical Care's receivables securitization program.

Debt, including liabilities from the receivables securitization program of Fresenius Medical Care decreased from € 3,707 million as of December 31, 2002 to € 3,335 million as of September 30, 2003. The reduction was almost equally achieved from the strong free cash flow as well as currency translation effects.

The key ratio net debt/EBITDA improved substantially as of September 30, 2003 to 2.8 (December 31, 2002: 3.0). The Group is therefore well on track to achieve its target of 2.5 in 2005.

Employees
As of September 30, 2003, Fresenius Group had 65,941 employees worldwide. This was 4 % or 2,303 people more than at the end of 2002.


The Business Segments

Fresenius Medical Care

Fresenius Medical Care AG is the world's leading provider of products and services for patients with chronic kidney failure. As of September 30, 2003, Fresenius Medical Care provided treatment to around 117,600 patients in 1,540 dialysis clinics, 7 % more than at the same date last year.

Fresenius Medical Care increased sales for the first nine months of 2003 by 9 % to US$ 4,075 million (Q1-3/2002: US$ 3,726 million). At constant currency, the increase was 6 %. Fresenius Medical Care had 70 % of sales in North America and 30 % elsewhere.

Both, dialysis products and dialysis care had increased sales. Sales of dialysis products increased 14 % to US$ 1,134 million (Q1-3/2002: US$ 991 million). The international business in particular showed strong growth rates. The number of dialysis treatments increased 9 % to 13.2 million, increasing sales by 8 % to US$ 2,941 million (Q1-3/2002: US$ 2,735 million). Dialysis care sales and dialysis products sales were 72 % and 28 % of sales respectively.

Fresenius Medical Care improved EBIT 8 % to US$ 550 million (Q1-3/2002: US$ 511 million). Net income increased 14 % to US$ 237 million.
For the year 2003, Fresenius Medical Care confirms its outlook and expects mid single digit revenue growth (in constant currency) and net income growth in the high single digit to low double digit range. As mentioned in the first quarter of 2003, Fresenius Medical Care expects to achieve net income growth for the full year 2003 near the lower end within the predicted range.

As a result of the weaker US dollar against the euro, Fresenius Medical Care's sales of US$ 4,075 million (€ 3,665 million) were 9 % lower than the € 4,018 million recorded in the first nine months of 2002 after conversion to euros. EBIT decreased 10 % to € 494 million (Q1-3/2002: € 551 million), also due to currency translation effects.

For further information please see Fresenius Medical Care Investor News at www.fmc-ag.com.

Fresenius Kabi

Fresenius Kabi focuses on nutrition and infusion therapy of patients, many of whom are seriously ill, in hospital and the ambulatory environment, as well as on infusion and transfusion technology.

Fresenius Kabi's sales for the first nine months of 2003 were € 1,082 million, 1 % above the level of € 1,068 million recorded in the same period last year. Currency translation had a negative impact of –5 % on sales. Fresenius Kabi achieved strong organic sales growth of 7%, in line with the full-year target. Divestments (the sale of the company ProReha effective August 1, 2002) reduced sales by –1 % percentage point.

The hospital business generated sales of € 865 million (Q1-3/2002: € 843 million; +3 %). The Ambulatory Care business had sales of € 217 million (Q1-3/2002: € 225 million).

EBIT for the first nine months of 2003 increased to € 107 million, well ahead of previous year's figure of € 65 million. The EBIT margin for the first nine months of 2003 was 9.9 %, well above the margin achieved in the same period last year (6.1 %). Next to the good development in the operating business, cost optimization measures had a positive impact on earnings. These improvements will continue to make a significant contribution to future earnings growth.

This positive development is based on the sustainable success of Fresenius Kabi's products in the European, Asian-Pacific and Latin American markets. In Europe, Fresenius Kabi was able to achieve a good 4 % organic sales growth despite cost saving measures and price pressure in the first nine months of 2003. In other, strong growing regions, Fresenius Kabi achieved double-digit organic growth rates.

For the full year 2003, Fresenius Kabi confirms its outlook of achieving organic sales growth of 6 to 7 %. EBIT for the full year 2003 is expected to be in the range of € 140 million.

* The previous year's figures have been adjusted to include the newly-assigned activities of the business segment Fresenius HemoCare (transfusion and infusion technology) effective January 1, 2003.
 

Fresenius ProServe

Fresenius ProServe offers services for the international healthcare systems. The range of services includes hospital management, the planning and construction of hospitals as well as of pharmaceutical and medical-technical production plants.

Fresenius ProServe increased sales 11 % to € 526 million for the first nine months of 2003 (Q1-3/2002: € 475 million). The Healthcare and Pharma Industry businesses achieved 86 % and 14 % of sales respectively.

Healthcare sales grew by 20 % to € 452 million (Q1-3/2002: € 377 million). Sales generated by services increased 30 % to € 361 million (Q1-3/2002: € 277 million). This was mainly due to the first-time consolidation of newly-acquired hospitals (mainly Klinikum Rhein-Sieg in Siegburg). Healthcare sales from project business, at € 91 million, were 10 % lower than in the same period last year (Q1-3/2002: € 100 million) due to project delays. Pharma Industry sales of € 74 million were 24 % lower than in the same period last year due to a general investment caution of the pharma industry.

Fresenius ProServe's EBIT for the first nine months of 2003 was € 5 million, after one-time expenses of € 8 million (Q1-3/2002: 16 million). The company announced in August 2003 a program at WKA to reduce costs and improve profitability. The program has been implemented in line with plan.

A bed utilization rate of 80 % in the third quarter 2003, compared to one of 81% in the last quarter, shows that bed utilization in acute and post-acute hospitals has not yet seen a turnaround. In addition, delayed project business orders had a negative impact on quarterly earnings.

A primary task is to improve Fresenius ProServe's profitability. In addition to the WKA program, further reorganization measures are currently being taken for the health care project and Pharma Industry businesses and will be implemented during the current year. This includes focusing Pharma Industry business regionally on selected key markets and the related closure of business sites. In addition, the ProServe subsidiary hospitalia international, which is active in the hospital project business such as the subsidiary VAMED, will operate in future under the umbrella of VAMED. This will lead to advantages from a joint market approach and from cost savings in administration. The reorganization will lead to one-time expenses of approximately € 15 million, mainly in connection with the write-down of the carrying amount of assets. These expenses will incur in 2003.

For the full year 2003, Fresenius ProServe expects EBIT before one-time expenses to be in the range of € 15 million. After one-time expenses, Fresenius ProServe anticipates that it will report a negative EBIT of approximately € 20 million.

Fresenius Medical Care AG ("The Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's largest provider of Dialysis Products and Services, today announced that during December it produced "Dialyzer No. 50 Million", which is the first year ever having reached production output of 50 million dialyzers annually. Over the past several years, the Company has expanded its manufacturing base and capacity in all major key markets, such as Europe, North America and recently also in Asia Pacific, specifically the market in Japan.

Over the recent years, the Company also introduced its next generation polysulfone high-flux dialyzer membrane technologies with the FX class dialyzer in the international market. Last year, the Company took a big step forward for both patients and the Company by switching its U.S. clinics to single-use (one time use) of dialyzers. Today, Fresenius Medical Care's U.S. clinics provide single-use dialyzer treatments for their patients as part of the Company's UltraCareTM program, which is a patient care treatment program that includes the new single-use Optiflux dialyzers as well as patient care treatment technologies with its series of 2008 dialysis machines.

At this year's American Society of Nephrology (ASN) Conference, one of the major renal conferences, which was held in San Diego on November 14 – 17, a scientific study was presented regarding the improvements in medical outcomes of single-use dialyzers compared to re-use dialyzers. This scientific study concludes that the use of new synthetic membrane dialyzers with each treatment suggests a survival advantage for patients compared to the use of dialyzers that have been clinically reprocessed (re-used).

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are all proud to have reached this level of dialyzer production output on a global basis and we are confident that our global strategy is on the right track."

• Sales:+ 7 % to € 3.75 billion
• EBIT:+ 11 % to € 420 million
• Net income: + 34 % to € 55 million

The Fresenius health care group increased sales by a 7 % growth rate to € 3.75 billion in the first six months of 2002. The development of earnings was positively influenced by the change in accounting methods to change US GAAP. In accordance with these rules, goodwill is no longer amortized.*)

Sales
In the first half of 2002, Fresenius increased consolidated sales to € 3,749 million. Of the 7 % increase, 6 percentage points derived from organic growth and 3 percentage points from acquisitions. The change in exchange rates diminished the growth rate by 2 percentage points. The negative exchange rate effect is mainly due to the devaluation of the peso in Argentina. In the period under report, the current weakness of the US dollar compared to the euro has not had any impact. Accordingly, sales growth would have amounted to 9 % at overall constant exchange rates.

In North America, Fresenius increased sales by 3 %. In Europe, the Group achieved a 19 % sales growth. Sales in the Asia-Pacific region developed very positively, with a plus of 22 %. The decline in sales of 28 % in Latin America was largely due to the devaluation of the Argentinean peso over the dollar. At constant exchange rates, a 5 % sales growth would have been achieved in Latin America.

The contributions of the business segments to total sales compared to the previous year shifted in favour of the business segment Fresenius ProServe as a result of the acquisition of Wittgensteiner Kliniken AG:

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 592 million and was thus 3 % lower than the previous year's figure of € 613 million. EBIT rose by 11 % to € 420 million (1st six months 2001: € 377 million). The EBIT ratio amounted to 11.2 % (previous year: 10.8 %). The accounting change concerning the amortization of goodwill in accordance with US GAAP financial accounting standards rule 142 had an impact of € 77 million. Without this effect, EBIT would have been 7 % lower than in the previous year (see table on page 9 with adjusted figures for the previous year) due to the development of Fresenius Medical Care.
The fact that goodwill is no longer amortized puts an end to companies being discriminated if they make acquisitions in order to expand their market positions.

The interest expense of the Group amounted to € -143 million (first six months 2001: € -38 million). The increase is mainly a result of the expansion of business through acquisitions.

The tax ratio dropped from 46.0 % in the first half of 2001 to 38.3 % in the year under report, largely due to goodwill no longer being written off. Profits allocated to minority interest holders increased to € 111 million, after € 87 million in the first half of 2001.

Net income before extraordinary items increased by 43 % to € 60 million (1st half 2001: € 42 million). In the first quarter of 2002 Fresenius Medical Care redeemed trust preferred securities which were originally due in 2006. This redemption resulted in extraordinary expenses in the Fresenius Group of € 5 million after taxes so that net income for the first six months amounted to € 55 million (1st half 2001: € 41 million).

The change in exchange rates, especially due to the effects of Latin American currencies, had a negative impact on consolidated earnings. At constant exchange rates, i.e. calculated at the exchange rates of the previous year, EBIT growth amounted to 13 % and net income to 37 %.

Earnings per share amounted to € 1.34 (same period previous year: € 1.03).

Investments
Total investments, € 257 million, dropped significantly in the first half of 2002 compared to the € 866 million invested in the previous year. This decline is due to the one-off effect of the acquisition of Everest Healthcare Corp. in the first half of the previous year, and the acquisition of Wittgensteiner Kliniken AG. 72 % of the total amount was invested in intangible and tangible assets and 28 % was allocated to acquisitions.
Investments in fixed assets mainly concerned the equipping of dialysis clinics, the expansion of production capacities and the optimisation of production processes.

Cash flow
The operating cash flow of the Fresenius Group amounted to € 296 million in the first half of 2002 (previous year: € 128 million). Operating cash flow totally covered the financing requirements before acquisitions (€ 142 million). The free cash flow before acquisitions and dividends totalled € 154 million, considerably higher than the previous year's figure of € -33 million. The financing requirements from the change in working capital amounted to € -34 million compared to € -235 million in the same period of the previous year.

Asset and equity structure
The balance sheet total dropped to € 9,175 million compared to the 31.12.2001 (€ 9,867 million; -7 %). This decrease is mainly due to the exchange rate effects. The equity ratio including minority interests, 36 %, was slightly below the ratio of 37 % as of end 2001. Bank loans, Eurobonds, commercial papers and trust preferred securities amounted to € 3,537 million (31.12.2001: € 3,737 million). The drop compared to the end of 2001 results from the conversion into euros of the financial liabilities reported in US dollars. Net debt amounted to € 3,372 million on 30.6.2002 (as of 31.12.2001: € 3,556 million).

The business segments

Fresenius Medical Care
Fresenius Medical Care, the world's largest provider of dialysis products and dialysis care, further strengthened its international market position. Altogether around 108,600 dialysis patients were cared for in 1,430 clinics on 30.6.2002.

Sales increased by 3 % to US$ 2,441 million (1st half 2001: US$ 2,361 million) (currency-adjusted: 6 %).
73 % of Fresenius Medical Care's sales, or US$ 1,793 million, (1st six months 2001: US$ 1,733 million) were generated by dialysis care; this division grew by 4 % in the period under report. The growth resulted from the increased number of dialysis treatments performed. In the first half of 2002 Fresenius Medical Care carried out 7.9 million dialysis treatments, 7 % more than in the same period of the previous year. In North America the number of dialysis treatments performed increased by 4 % to 5.7 million. Outside North America 2.3 million treatments were carried out, an increase of 18 % compared to the same period of the previous year. Sales of dialysis products, including product sales to the company's own clinics, rose by 4 % (currency-adjusted: 6 %) in the period under report to US$ 835 million.

In North America, Fresenius Medical Care increased sales by 3 % to US$ 1,821 million (1st half 2001: US$ 1,769 million). The international business achieved sales of US$ 620 million (1st half 2001: US$ 592 million). When adjusted for currency effects, growth amounted to 13.5 %.

Fresenius Medical Care increased EBIT by 6 % from US$ 326 million in the first half of 2001 to US$ 344 million. Net income before extraordinary items rose by 27 % from US$ 118 million in the first six months of 2001 to US$ 149 million in the first half of 2002. Earnings development was influenced among others by the delay in the introduction of single-use dialysers in the United States.

The business prospects of Fresenius Medical Care continue to be positive. Additional opportunities to increase sales and earnings are expected especially in North America. Outside North America, the growth rates of Fresenius Medical Care are substantially higher than overall market growth.

Despite this positive environment, Fresenius Medical Care reduces its forecast for 2002. This is largely due to the delay in switching from re-use dialysers to single-use dialysers. The strategic decision to change to treatment with single-use dialysers will help to ensure the future growth of Fresenius Medical Care in the North American market.

Fresenius Medical Care expects a sales growth of six percent on the basis of constant exchange rates. The target for earnings after tax is revised from US$ 350 million to approximately US$ 300 million.

For further information – please see Investor News Fresenius Medical Care.


Fresenius Kabi
Sales of Fresenius Kabi, Europe's leading provider of infusion and nutrition therapies, amounted to € 627 million in the first half of 2002, the same level as the previous year (1st half 2001: € 628 million).

The breakdown of sales is as follows: Sales of the hospital business amounted to € 478 million (1st half 2001: € 475 million). This figure was influenced by the decrease in sales from the contract manufacturing business. In the ambulatory care business Fresenius Kabi achieved sales amounting to € 149 million (1st half 2001: € 153 million). The drop in sales is largely a result of adjustments in product portfolio of the subsidiary ProReha. If these effects are not taken into account, Fresenius Kabi achieved an organic growth of 7 %. Currency conversion had a negative influence of 1 percentage point on the sales development of Fresenius Kabi.

EBIT of Fresenius Kabi amounted to € 35 million in the first half of 2002 compared to € 19 million in the comparable period of the previous year. This corresponds to a growth of 84 %. This result was influenced by measures to increase profitability in the Uppsala facility, including a special charge in connection with the reduction of personnel, ongoing measures to optimise production and the focus on production in this location.


Fresenius ProServe
Fresenius ProServe, the engineering and management specialist which operates in the global hospital market, achieved sales of € 321 million in the first half of 2002, thus considerably exceeding the previous year's figure of € 160 million.

Sales of the healthcare business almost doubled to € 256 million compared to the same period of the previous year. Of this figure, 72 % of sales were generated by services and 28 % by projects. The increase in sales of services to € 184 million was significantly influenced by the acquisition of Wittgensteiner Kliniken AG (same period previous year: € 73 million). Sales of the project business developed well in the first half of the year and amounted to € 72 million, 29 % higher than sales of the first six months of 2001, € 56 million.

Sales of the pharma industry business, € 65 million, also registered a positive development in the first six months of 2002 (1st half 2001: € 31 million).

EBIT of Fresenius ProServe increased from € 3 million in the first half of 2001 to € 8 million in the first six months of 2002.

Orders received and orders on hand of the project business registered a substantial increase over the previous year:

Fresenius HemoCare
The Fresenius Group business segment Fresenius HemoCare, which specializes in blood preparation and treatment and in immune therapy, increased its sales by 8 % in the first half of 2002 to € 114 million (1st half 2001: € 106 million). This increase was achieved both as a result of organic growth as well as through the consolidation for the first time of the acquisitions carried out in 2001.

EBIT of Fresenius HemoCare amounting to € 4 million in the first half of 2002 was the same as the previous year. Ongoing expenses for building up distribution organizations as well as a continuous high level of research and development expenses had an impact on earnings development.


Group outlook on 2002
Based on the revised business outlook of Fresenius Medical Care, the Fresenius Group anticipates a high single-digit growth rate in sales at the end of 2002, assuming constant exchange rates. Earnings are expected to grow more strongly than sales. This growth is due to the fact that goodwill is no longer amortized as a result of the changed US GAAP accounting rules which have been in force since the beginning of the 2002 financial year; these new rules have most impact on Fresenius Medical Care.

The implementation of strategic decisions such as the introduction of single-use dialysers in the United States, and the measures taken by Fresenius Kabi, temporarily affects the development of our business. Fresenius is convinced that these decisions will further strengthen the leading market position of Fresenius Medical Care in dialysis and of Fresenius Kabi in infusion and nutrition therapy, and will result in increased profitability of the companies in the future.

The Fresenius Group, with its four business segments, is in an excellent global strategic position. Demand for our life-saving products and services continues to be strong despite sustained pressure to save costs especially in the health care markets of the West. The markets of the Asia-Pacific region in particular offer very good growth prospects for Fresenius.

^*) The Fresenius Group will prepare its accounts as of January 1, 2002 in accordance with US GAAP. The figures for the previous year therefore correspond to the US GAAP accounting rules in force 2001, i.e. the figures for 2001 include amortization of goodwill.

Fresenius Medical Care AG ("FMC") (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 of 2002.

OPERATIONS

Second Quarter 2002:
Fresenius Medical Care AG reports a 17% increase in earnings after tax (EAT) after minorities to $ 74 million for the second quarter 2002.

Total revenue for the second quarter 2002 increased 4.4% (6% at constant currency) to $ 1,254 million. As in the first quarter of 2002 this growth was mainly driven by organic growth in both business segments. Same store revenue growth at constant exchange rates was 4.5%. Dialysis Care revenues grew by 3.3% to $ 912 million (+6% at constant currency) in the second quarter of 2002. External Dialysis Product revenues increased by 7.5% to $ 343 million (+6% at constant currency) in the same period.
North American revenue rose 3% to $ 928 million, compared to $ 902 million in the same period last year. Dialysis Care revenue in the US increased by 4% to $ 814 million. Same store treatment growth and same store revenue growth for the second quarter of 2002 were 4%. North American Dialysis Product revenue, including sales to company-owned clinics, increased 1% to $ 190 million. Product sales to the available external market grew by 3%.

International revenue was $ 326 million, up 15% adjusted for currency. Dialysis Care revenues reached $ 98 million in the second quarter 2002 (+17% at constant currency). Dialysis Products revenue, including sales to company-owned dialysis clinics, increased 13% to $ 245 million (12% currency adjusted).

Earnings before interest and taxes (EBIT) increased 1% to $ 170 million resulting in an operating margin of 13.6%. In the first quarter of 2002, the Company achieved an operating margin, adjusted for non-recurring items, of 14.2%. The reduction by around 60 basis points in the second quarter was mainly due to the move to single-use dialyzers in North America, higher bad debt expenses and currency effects. The operating margin did benefit slightly from lower staffing costs in the company's North American single-use dialysis clinics.

Earnings per share (EPS) in the second quarter 2002 rose 17% to $ 0.77 per ordinary share ($ 0.26 per ADS), compared to $ 0.66 ($ 0.22 per ADS) in the second quarter of 2001. The weighted average number of shares outstanding during the second quarter of 2002 was approximately 96.2 million, compared to 96 million in the same period of 2001.

In the second quarter of 2002, the Company generated $ 173 million in cash from operations. This is an all-time record for any single historical quarter and was mainly driven by improved accounts receivable collections in North America. A total of $ 39 million (net of disposals) was spent for capital expenditures, resulting in a Free Cash Flow for the second quarter 2002 of $ 134 million. Capital expenditures were $ 17 million lower than in Q2 2001. A total of $ 31 million in cash was spent for acquisitions. Free Cash Flow after acquisitions was $ 103 million. In the second quarter of 2001 the Free Cash Flow after acquisitions was $ minus 25 million.

First Half Year 2002:

For a complete overview of the first half year of 2002 please refer to the appendix.

In the first half of 2002, net income before extraordinary items was $ 149 million, up 27% from the first half year of 2001. Adjusted for currency, net income growth was 28%. Net revenue was $ 2.44 billion, up 3.4% from the first half of 2001. Currency adjusted, net revenue rose 6% in the first half of 2002. Earnings before interest and taxes (EBIT) increased 6% to $ 344 million resulting in an operating margin of 14.1%. In the first half of 2002, earnings per ordinary share before extraordinary items rose 27% to $ 1.55. Earnings per ordinary ADS for the first half of 2002 were $ 0.52.

Fresenius Medical Care generated $ 244 million cash from operations during the first six months of 2002 ($ 146 million in H1 2001). Net cash used for acquisitions was $ 40 million and capital expenditures (net of disposals) were $ 90 million. Free Cash Flow for the first half of 2002 was $ 154 million compared to $ 28 million in the first half of 2001.

As of June 30, 2002, the Company operated a total of 1,430 clinics worldwide (1,050 clinics/+4% in North America and 380 clinics/+7% International). Fresenius Medical Care AG performed approximately 7.9 million treatments, which represents an increase of 7% year over year. North America accounted for 5.7 million treatments (+4%) and the International segment for 2.3 million (+18%). At the end of the second quarter 2002 Fresenius Medical Care AG provided treatment to around 108,600 patients worldwide which represents an increase of 6%. North America accounted for ~78,000 patients (+3%) and the International segment for ~30,600 patients (+16%).

LEGAL UPDATE

Commercial Disputes (1996 Merger related)
Fresenius Medical Care AG finalized a settlement resolving the pending litigation with Aetna Life Insurance Company and its affiliates (Aetna), one of the leading US commercial insurance companies. Separately, Fresenius Medical Care has entered into a multi-year agreement with Aetna to offer provide disease state management (DSM) services for Aetna healthplan members served in FMC facilities.

All other 1996 merger-related legal issues are developing within the company's expectation and the company considers the charge taken in the fourth quarter 2001 to be adequate.

OUTLOOK 2002 / 2003

While the margin development is impacted temporarily by the North American single-use dialyzer initiatives and by currency issues in the International segment, the fundamentals of the Company remain strong. In North America additional revenue and profit opportunities are expected in the future following the implementation of the company's single-use and Disease State Management programs. Cash collection and cash flow were extremely strong in the second quarter in North America and the Company will continue to focus on cash generation going forward. The International business continues to grow significantly above the market, achieving 13.5% revenue growth (constant currency) in the first half year of 2002.

Despite the strong fundamentals, the Company feels that it is prudent to revise its guidance. For the full year 2002 the company now expects a revenue growth of 6% at constant currency exchange rates.

The target for the earnings after tax is revised to around $ 300 million after previously $ 350 million. All other targets (e.g. Capital Expenditure ~$ 220 million and Free Cash Flow >$ 200 million) remain unchanged. The three main reasons for this adjustment are a delay in the targeted single-use cost reduction, a temporary reduction in the projected revenue growth in North America while the single-use program is implemented and the currency devaluation and economic downturn in Latin America.

For the Year 2003, the Company expects revenue growth before acquisitions in the mid single digits (constant currency) and earnings after tax growth in the high single digit to low double digits range.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased to have finalized the settlement and developed a good working relationship with Aetna. Europe and Japan continue their strong financial performance. We are pleased with the record Free Cash Flow for the second quarter and we will continue to focus on accounts receivable collection and strong Free Cash Flow. However, I am personally disappointed with the recent operating margin developments and the projected delay in achieving our single use financial targets in North America. Therefore we must revise our guidance to ensure a conservative approach to financial planning. The Company has identified all necessary steps that have to be taken to finalize the successful implementation of the North American single-use dialyzer strategy."

Fresenius Medical Care AG is the world's largest, integrated provider of products and services for individuals with chronic kidney failure, a condition that affects more than 1,000,000 individuals worldwide. Through its network of approximately 1,430 dialysis clinics in North America, Europe, Latin America and Asia-Pacific, Fresenius Medical Care provides Dialysis Treatment to approximately 108,600 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.

Please click here to download the complete speech including charts as pdf-file (460,3 KB).

To download, please use Adobe Acrobat Reader.

Annual General Meeting May 29, 2002
Address to the shareholders of Fresenius AG

The spoken word is binding.

Good morning, Ladies and Gentlemen,

On behalf of the Supervisory Board and the Managing Board of Fresenius AG I welcome you most cordially to this year's Annual General Meeting. It is a pleasure to see so many of you here today and I thank you for your interest. I should also like to welcome our guests and the representatives of the press.

To start with I should like to go into the figures of the past financial year, 2001, and about the 1st quarter 2002. Then, I want to explain how the health care group Fresenius is positioned in the various markets of the world with products and services, and I will tell you how we anticipate that the markets will develop in the future. At the same time, I should like to emphasise to you our strengths and opportunities in the coming years.

Sales and earnings 2001 and 1st quarter 2002
As I already said, I will start with the year 2001. This was a year in which we again achieved an excellent growth in sales of 20 %, but it was also a year in which we had to suffer setbacks and in which earnings did not grow faster than sales, as in the past years. The charges taken by Fresenius Medical Care in connection with the transaction to acquire National Medical Care from W.R. Grace in 1996, and the substantial restructuring measures made by Fresenius Kabi, had a negative impact on our earnings.

This chart shows that we increased sales by 20 % to 7.3 billion euros. This corresponds to a growth of 1.2 billion compared to the previous year. Thus, Fresenius is one of the largest companies in our segment, health care. As you can see, 11 % of the sales increase resulted from acquisitions, but 8 % also came from organic growth, that is growth due to our own efforts. This is an particularly important figure because it clearly shows that we are growing more strongly than the market, and it also means that we are gaining market shares. This 8 % organic growth corresponds to sales of around 500 million euros. Thus, we even exceeded the organic growth of the year 2000. Currency influences contributed only one percentage point to overall growth.

In the 1st quarter of 2002 – at this point I want to inform you about the current financial year - we met our sales target of 10 %. We increased sales to 1.85 billion euros, that is, by 11 %. Organic growth was 6 %, as anticipated. We increased sales with our products and services not only in our traditional markets Northern Europe and North America but also in the region Asia-Pacific. Here we achieved a strong organic growth of more than 20 %. Unfortunately, the difficult economic situation in Argentina, where the peso was strongly devalued, had a negative impact on our business, otherwise we would have achieved a double-digit increase rate in Latin America as well.

Back to 2001:
Despite the setbacks and the negative influences caused by Fresenius Kabi and by Fresenius Medical Care, we increased operating profit by 5 %, but not, as I already said, at a higher rate than sales. Earnings were affected by the restructuring of Fresenius Kabi, especially the start-up costs for the infusion solutions production lines in the Uppsala factory in Sweden, the restructuring measures in the Friedberg plant, the costs of closing the plant in Stockholm and the sale of the production facility in Limoges. All these measures were necessary in order to create the conditions to reduce manufacturing costs and increase the profitability of Fresenius Kabi in future.

Earnings were also affected because Fresenius Medical Care in the United States has started to convert dialysis from the re-use of dialysers to single use, which is normal in Europe. This is an important measure to further improve the quality of dialysis treatment and an investment for the future. In addition, the integration of the dialysis chain Everest Healthcare caused additional costs in the United States.

Nevertheless, we achieved a net income before extraordinary charges of 369 million euros, a plus of 39 %. Taking these charges into account, net income amounted to 179 millions.

We are convinced that these accruals of Fresenius Medical Care mean that all possible risks from the NMC transaction have been removed.

As far as earnings are concerned, the start into the new financial year was more onerous than expected. Although EBIT rose by 23 % in the first quarter of 2002, this earnings increase was favourably influenced by the change in the US GAAP accounting rules, and the fact that goodwill is no longer amortized. If these effects are not taken into account, operating profit, that is EBIT of the 1st quarter 2002, was at the same level as the previous year.

The fact that goodwill is no longer amortized puts an end to companies being discriminated if they make acquisitions in order to expand their market positions. This increases the comparability between the companies and will enable the financial situation of companies, Fresenius as well, to be better assessed.

The amortization of goodwill has been replaced by an annual impairment test. We are very pleased that the goodwill of Fresenius was not impaired in the past years, despite the large and difficult acquisitions which we have made.

I should like to comment on the fact that we have changed our accounting methods in the Group to US GAAP as from the beginning of 2002. The US GAAP accounting rules are more shareholder-oriented than German accounting methods in accordance with the Commercial Law (HGB). Furthermore, our largest company, Fresenius Medical Care, has reported in US GAAP since its foundation in 1996, so that it was a fairly obvious step for the Group to follow suit.

In order to set off for tax purposes the profits of the companies Fresenius Kabi AG and Fresenius Versicherungs-Vermittlungs GmbH with the costs of Fresenius AG, we have concluded profit transfer agreements. We ask you to give your approval to these profit transfer agreements in topic 6 of today's agenda.

I should like to comment on the dividend now:
Although net income has been influenced by the extraordinary charges which I have already explained, you, our shareholders, shall have a share in the positive operating earnings situation of the Group. We therefore propose to you that the dividend for the 2001 financial year be increased by 10 % to 1.03 euros per ordinary share, and to 1.06 euros per preference share. Altogether we shall distribute 42.8 million euros for the 2001 financial year. This means that we are carrying on with our earnings-linked dividend policy and can present to you another consecutive dividend increase.

2001 was also a difficult year for our employees who had an especially heavy workload. They had to cope with many difficult changes. Nevertheless, we were able to further increase our position in the markets. For this achievement of every single employee in our company, that means all employees in the numerous locations in the world, I should like to give special thanks. I should also like to thank the representatives of the employees' bodies for their constructive support and readiness to discuss issues frankly.

Investments
In the last financial year we reached new records in the level of investments by investing 1.2 billion euros, as you can see on the left hand side of the slide. 66 % of this investment total, which is around 800 million euros, was allocated to acquisitions, and 400 million euros to investments in tangible and intangible assets.

I should like to remind you of two major acquisition projects. One was the acquisition of the dialysis clinic chain Everest in the United States – Everest treats around 6,800 dialysis patients – and the other was the purchase of Wittgensteiner Kliniken AG, one of the largest hospital operators in Germany. You approved this acquisition in the last Annual General Meeting, for which I thank you. The acquisition of Wittgensteiner Kliniken in particular marked an important step towards the management and operation of hospitals in Germany, and created the nucleus of an international hospital organisation.
These two acquisitions are reflected in the breakdown of acquisitions by region, as you can see on the right hand diagram. Almost 50 % of total investments were made in North America and 40 % in Europe.

Concerning investments in tangible assets, I should like to give special mention to the construction of a completely new plant for peritoneal dialysis products in Japan, and investments in the extension of the dialyser production capacities in the United States and Germany. We also invested in Kabi, despite all the restructuring measures, in the building up and especially in the optimisation of production plants, both in Sweden and in Germany. This high level of investments means that we have invested in the future, so that we need to spend a significantly lower amount on investments and for acquisitions in this year, 2002.

Development of the business segments
I should like to close my report on the past year 2001 with a short review of the economic development of the individual business segments. You will find detailed reports in our annual report.

Fresenius Medical Care – and I deliberately remind you of this again – was created only five years ago from the dialysis division of Fresenius. FMC increased sales by 19 % to 5.4 billion euros. About half of this increase is due to organic growth and half to acquisitions. The effects from currency conversion amounted to about 2 %. Fresenius Medical Care increased EBIT by approximately 7 % in the 2001 financial year to 719 million euros. The increase in earnings, which is proportionately lower than the increase in sales, is mainly a result of the effects which I have already mentioned.

Fresenius Kabi achieved a remarkably strong sales increase of 14 % to around 1.3 billion euros. Organic growth at 7 % is very good in view of the fact that around three quarters of these sales were achieved in Europe, in a market region which is only growing at a rate of around 2-4 %. This emphasises what a great success the rise of 7% in organic growth represents. Despite all our exertions, we did not succeed in increasing the operating profit of Kabi. It amounted to 75 million euros and was therefore 15% lower than that of 2000. I explained the reasons to you at the beginning, they are largely the restructuring and reorganisation measures both in Germany and in Sweden. Furthermore, the costs of concentrating our production facilities are affecting our earnings. These were mainly the sale of the French factory in Limoges and the factory in Potenza in Italy. Also we have suffered considerable losses at the German subsidiary ProReha.

Fresenius ProServe, our third largest business segment, achieved sales of 452 million euros, following 284 million euros in the year before. This growth was influenced by the consolidation for the first time of Wittgensteiner Kliniken, abbreviated as WKA, which contributed 134 million euros to sales. But even without WKA, growth of ProServe, 12 %, would have been a double-digit percentage. Operating profit increased to 17 million euros.

We made good progress in the year under report with the integration of Wittgensteiner Kliniken. Nevertheless, we still need to implement measures this year to counteract the permanent cost pressure in the health systems and improve profitability.

Sales of Fresenius HemoCare amounted to 223 million euros. We are pleased to report that the operating profit, although it is still small, rose 29 %, significantly more than the increase in sales. I will go into more detail later about the promising fields of activity of Fresenius HemoCare, in my strategic outlook.

Expectation 2002
For 2002 as a whole we anticipate that we shall be able to further increase our position in the markets of the world with our life-sustaining and life-saving products and services, and we expect to increase sales over the whole year by approximately 10 %. Earnings should rise by a double-digit percentage and will be positively influenced by goodwill no longer being amortized. Further great efforts will be required to compensate for the low level of investment and the continuous price drops, especially in the European markets, by continuing to optimise costs.

The Fresenius Shares
The development of the share prices of many companies, and also of Fresenius, is disappointing and has certainly caused your displeasure. Our share price development, which you can see on the slide, was worse than that of the DAX and MDAX – this we freely admit. This was the result of the negative influences of Fresenius Kabi and the charges at Fresenius Medical Care. These effects are reflected in this index comparison.

I personally am convinced that in the end, share prices follow the economic development of a company, often not immediately, but certainly in the long term. I therefore conclude that the Fresenius shares will rise again in line with our targeted earnings , and you, and we as well, will again be satisfied with our share prices.

Strategic outlook
In my following strategic outlook I should like to present to you the strengths and opportunities of our four companies, the activities of which you can see here on the slide. Our field of activity is health care. Fresenius has products which save or sustain lives. We have a firm place in medical therapy with these products. Although we have to cope with strong changes in the health care systems, especially with the enormous pressure on the prices of our products, the demand for our products and services is steadily increasing. This demand is generated in particular by the demographic development and by the demand for higher quality and better therapies.

Now I shall briefly comment on the products, services and the market position of our business segments:

Our largest company, Fresenius Medical Care, which was created from our dialysis division, is the world's largest dialysis company and cares for around 106,000 patients in 1,400 clinics all over the world.

This slide gives you an idea of the number of patients in the various regions. You can see from the relatively low number of patients in Asia-Pacific what excellent growth opportunities this region offers.

Altogether there are more than one million patients with kidney failure in the world, and this number is increasing by 6 % a year; this also corresponds to the latest projections of the American health authorities.

Dialysis treatment is given to patients with chronic or acute kidney failure. Kidney failure without dialysis treatment results in death within a week. The only alternative to dialysis is transplantation, but the number of healthy organs available is limited. Fresenius Medical Care is setting the quality standard in dialysis today with its products and services. Fresenius Medical Care achieved a market share of 60 % in the United States with dialysers and dialysis machines. If you look at the number of patients treated by Fresenius Medical Care (FMC) in the United States, we are treating more than twice as many patients than our closest competitor. Even in the Asia-Pacific region, excluding Japan due to the special circumstances in this country, the market share of dialysers is 30 and dialysis machines over 40 %.

Fresenius Kabi, with its products for infusion and nutrition therapy, is an important partner of the hospital and the number 1 in Europe with a market share above 30 %. Patients who can no longer eat in the natural way, or who cannot eat sufficiently, e.g. after surgical operations, are given our products. Patients who continue to require medical care with products and services at home, when they have left hospital, are cared for by our Ambulatory Care division. These patients very often have to undergo long-term nutrition therapy, cancer patients for instance, or people who have undergone a stomach or bowl resection.

ProServe, our service division, the company which plans and builds hospitals and operates as well as manages them commercially and medically, took a major step towards integrated patient care through its acquisition of Wittgensteiner Kliniken. The changes which are making themselves felt, above all in the German health systems, to a large extent with the introduction of case-by-case reimbursement systems, and which will mean that more and more hospitals will be privatised, open up excellent future prospects for Fresenius ProServe. It is our aim to network health care services and to offer fully-integrated patient care, as you can see on this chart. Starting from acute care in hospital wards, care is to be extended to post-acute medical care and/or long-term care in specialised clinics and private care facilities. Today our network already consists of more than 8,000 beds. Ambulatory care at home is provided by Fresenius Kabi.

In addition, we are active in the project business and in hospital management in the region Asia-Pacific. As an example I will show you a project in Malaysia. There we are responsible for the management of a 350-bed acute hospital.

In showing you the activities of Fresenius HemoCare I will concentrate on the two promising fields adsorber technology and immune therapy. Adsorber technology is a comparatively new form of therapy which is not yet accepted as a real alternative to drugs in the treatment of specific diseases. In this new field of activity, pathogenic substances are removed from the blood of a patient by means of adsorbers, and they are bound to the adsorber material. As an example, patients with hereditary hypercholesteraemia are treated by this method and blood lipidscholesterol is bound in an adsorber. Or, and this is an example where the medical effectiveness has been proved, in the case of patients with severe rheumatoid arthritis, the immune complexes which cause rheumatism are removed from the patients' blood.

At present we have great hopes in an adsorber which is used for the treatment of patients with sepsis. Sepsis is a severe bacterial blood infection. Every year, thousands of people in Germany alone die from sepsis. The clinical trial which has just been concluded has shown good results so that we are now planning a follow-up trial in which sepsis will be treated with adsorbers over a longer period of time.

In the field of immune therapy we are proceeding with the project with Trion Pharma which concentrates on the use of bispecific trifunctional antibodies in various cancers. We are carrying out phase I and II clinical trials on patients with non-small cell lung cancer and cancer of the ovaries. In connection with our project with the university in Göttingen to treat renal cell cancer, we will commence a detailed clinical trial this year when we have finished all the preparatory work. Further studies on breast cancer and cancer of the pancreas are planned.

Projects in the field of cancer therapies are of a long term nature, and normally it requires many years before a product is ready for the market. However, we are very hopeful that our immune therapy projects for the treatment of cancer will lead to convincing results and that further enormous growth potential will result both for Fresenius HemoCare and also for Fresenius. To extend our activities in the field of immune therapy we have acquired two institutes which are involved in the modification of cells, Kitaro in Hanover and Eufets, which is the European Institute for Research and Development of Transplantation Strategies, in Idar-Oberstein. Thus we are in a position to offer the necessary cells for the immune therapy of cancer.

Following this brief summary of our products and services I should like to explain to you our position in the various markets of the world. Currently, there is no other company which operates in the health care industry worldwide as Fresenius does. We generate almost 90 % of our sales outside Germany. More than half of sales are generated in North America, largely due to our activities in the dialysis field. Our second largest market is Europe with a 30 % share. Europe is our traditional home market. In Europe we are number 1 both in dialysis and in nutrition and infusion therapy. In these two large markets, United States and Europe, we achieved a growth rate of 20 % and 19 % respectively. In these two large regions, United States and Europe, which already provide comprehensive care of patients with a high standard of quality, there are further but limited growth opportunities, resulting from the increasing life expectancy of people and through new products and therapies. Very good opportunities result from long-term medical therapy being transferred from the hospital to the home environment of the patient. This significantly improves the quality of life of the patient, and also reduces costs for the health systems. We anticipate that the market for ambulatory therapies will grow annually by about 10 % in the years to come.

The growth markets of the regions Asia-Pacific and Latin America give a different picture. Here the shares of total sales, 6 % in Asia and 5 % in Latin America, are still small, but the growth rates are around 20 %.

The growth which we can achieve in these regions, especially in Asia-Pacific, will be largely determined by the following factors:
The increase in GDP, and the resulting increase in expenditure on health care. In China for instance, where we already employ more than 1,000 people, and have been manufacturing and selling for several years, GDP rose by about 7 %. Expenditure on health increased however by around 13 %, in a market which contains 1.3 billion people.

The demand for medical care is continually increasing. However, not nearly as many patients receive treatment as in the industrialised counties of the world. For instance, the number of patients receiving dialysis treatment in Japan is 1,400 per million population. In China, only around 20 patients per million population are treated. Also, better knowledge about treatment possibilities, to some extent by obtaining information from the Internet, will increase demand for our products.

We are concentrating our activities on the regions with high GDP growth and have created an excellent starting position in the important markets of the world in the past years by means of major acquisitions and a high level of investment.

We are convinced that Fresenius holds a unique strategic position worldwide. We have the right products, offer all-round services and are represented in all the growth regions of the world. This is the basis for our future sales and earnings growth.

Conclusion
I thank you, our shareholders, for being loyal to us in this tough year. I hope you will continue to put your trust in our long-term strategy of making Fresenius an international health care company.

Thank you for listening for so long.