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Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today reports that Standard & Poor's has assigned upgraded debt and recovery ratings to the Company's unsecured debt issues. Based on a recovery analysis the rating of Trust Preferred Securities IV ($225 million) and Trust Preferred Securities V (€300 million) improved to BB from single B+. Additionally the rating of the $500 million Senior Notes due 2017 improved to BB+ from BB-. The corporate credit rating remains unchanged at BB, the outlook is stable.

Lawrence A. Rosen, Chief Financial Officer, commented: "The Company welcomes the improved ratings which reflect our strong global position in growing, non-cyclical markets of the dialysis industry. The dialysis industry is characterized by stable cash flows; most of the Company's customers have a high credit rating. Furthermore, we have a proven ability to reduce debt significantly over time. Our financial position is strong and we are confident to meet our financial targets."

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Fresenius Medical Care AG & Co. KGaA ("The Company") today announced that the United States District Court for the Northern District of California issued orders in the long standing patent case initiated by the Company to establish the invalidity of certain patents claims alleged to apply to the Company's 2008K hemodialysis machines in United States. These orders reflect another step in this lengthy legal process. The Company continues to believe with good reasons that these patents claims are invalid as determined by the U.S. Patent Office in recent reexaminations and will therefore appeal the court decision with confidence. In addition, the Company has prudently developed a back up design while this legal process continues and expects no material impact on its product business with hemodialysis machines.

The United States District Court for the Northern District of California has entered orders denying Baxter's motion for a new trial, establishing a royalty for continuing sales and deferring entry of an injunction until January 2009.

Fresenius Medical Care Holdings ("FMCH") intends to appeal to the United States Court of Appeals for the Federal Circuit for reinstatement of the original jury verdict (July 2006) of invalidity on all patent claims remaining in this case relating to touch screen interfaces for hemodialysis machines.
In June 2006, Fresenius Medical Care Holdings prevailed in a jury trial relating to patent claims regarding touch screen interfaces for hemodialysis machines when the jury found all of the patent claims asserted against FMCH to be invalid.

The trial court overturned that jury's verdict and ordered a new trial to determine damages. In October 2007 a second jury, in the trial to determine damages, rejected Baxter's demand that FMCH pay more than $149 million and instead awarded damages of $14.3 million on FMCH's sales of more than $2 billion of hemodialysis machines and disposables through October 2007.

On April 4, 2008, the trial court denied Baxter's motion to overturn the second jury's $14.3 million damage award and order a second new trial. Nevertheless, the Court entered orders establishing royalties of 10% on all sales of 2008K hemodialysis machines and 7% on sales of related disposables beginning November 7, 2007, and deferred enjoining sales of 2008K machines until after January 1, 2009.

Since the initiation of this litigation, the United States Patent and Trademark Office ("USPTO"), in re-examination proceedings, has rejected all the asserted claims of the patents as invalid and obvious. The USPTO's rejections of the two patents central to this dispute have been made final.

With several previous decisions clearly in favor of the Company, FMCH will appeal to the Court of Appeals for the Federal Circuit to have the original June 2006 jury verdict of invalidity reinstated and will seek a stay of the injunction pending resolution of the appeal.

Dr. Ben J. Lipps, Chairman of the Management Board of FMCAG KGaA commented, "We are convinced that the original verdict of invalidity was amply supported by the evidence. We note that the Unites States Patent and Trademark Office similarly found the claims to be invalid when presented with a substantial record of prior art. We are confident that based on that record the Court of Appeals will confirm the original jury verdict of invalidity. In the meantime, we have developed alternate user interface designs and with the respite given, we do not expect any material impact for our North American business. We will continue to provide to patients and providers the machines and supplies that meet our exacting standards for quality and reliability."

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Summary First Quarter 2008:

• Net revenue: $ 2,512 million, + 8%
• Operating income (EBIT): $ 389 million, + 7%
• Net income: $ 186 million, + 16%
• Earnings per share: $ 0.63, + 15%

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

Revenue

Net revenue for the first quarter 2008 increased by 8% to $2,512 million (4% at constant currency) compared to the first quarter 2007. Organic revenue growth worldwide was 5%. Dialysis Services revenue grew by 5% to $1,844 million (3% at constant currency) in the first quarter of 2008. Dialysis Product revenue increased by 19% to $667 million (10% at constant currency) in the same period.

North America revenue increased by 2% to $1,668 million. Dialysis Services revenue grew by 1% to $1,495 million. Excluding effects of the divestiture of the perfusion business in spring 2007, Dialysis Service revenue increased by 3%. Average revenue per treatment for the U.S. clinics was at $326 in the first quarter 2008 compared to $329 for the first quarter of 2007 and $325 for the fourth quarter of 2007. Versus the fourth quarter of 2007, this development was based on an increase in underlying reimbursement rates and an increase in EPO utilization. Dialysis Product revenue increased by 12% to $172 million well above market and was led by strong sales of all of our major products, the 2008K hemodialysis machines, concentrates, dialyzers and the phosphate binding drug PhosLo.

International revenue was $844 million, an increase of 23% (10% at constant currency) compared to the first quarter of 2007. Dialysis Services revenue reached $349 million, an increase of 26% (13% at constant currency). Dialysis Product revenue rose by 22% to $495 million (9% at constant currency), led by strong dialyzer and dialysis machine sales.

Earnings

Operating income (EBIT) increased by 7% to $389 million compared to $365 million in the first quarter 2007. Operating margin decreased from 15.7% in the first quarter of 2007 to 15.5% in the first quarter of 2008 reflecting mainly the increased expenditures for our corporate research and development activities and the expansion in the International dialysis service business.

In North America, the operating margin increased by 60 basis points from 15.8% to 16.4% in the first quarter of 2008. The strong underlying business was supported by the increase in underlying reimbursement rates, dialysis services cost containment and a continued strong performance of renal products and PhosLo. This was partially offset by a lower utilization and reduced reimbursement rates for EPO.

In the International segment, the operating margin decreased by 60 basis points to 17.0% mainly due to the growth in the dialysis care business through an increased number of De Novo clinics and associated start-up costs.

Net interest expense for the first quarter 2008 was $83 million compared to $95 million in the same quarter of 2007. This positive development was mainly attributable to lower average interest rates.

Income tax expense was $114 million for the first quarter of 2008 compared to $103 million in the first quarter of 2007, reflecting effective tax rates of 37.3% and 38.0%, respectively.

Net income for the first quarter 2008 was $186 million, an increase of 16%.

Earnings per share (EPS) for the first quarter of 2008 rose by 15% to $0.63 per ordinary share compared to $0.54 for the first quarter of 2007. The weighted average number of shares outstanding for the first quarter of 2008 was approximately 296.6 million shares compared to 295.2 million shares for the first quarter of 2007. The increase in shares outstanding resulted from stock option exercises in 2007 and in the first quarter 2008.

Cash Flow

In the first quarter of 2008, the Company generated $192 million in cash from operations, representing approximately 8% of revenue. The cash flow generation was primarily affected by an increase in Days Sales Outstanding (DSO) in the first quarter of 2008 compared to 2007 and higher income tax payments.

A total of $154 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $38 million compared to $174 million in the first quarter of 2007 on a reported basis. A total of $32 million in cash was used for acquisitions net of divestitures. Free Cash Flow after acquisitions and divestitures was $6 million compared to $84 million in the first quarter last year.

Please refer to the appendix for a complete overview on the first quarter of 2008.

Patients – Clinics – Treatments

As of March 31, 2008, Fresenius Medical Care treated 177,059 patients worldwide, which represents a 5% increase in patients compared to the same period last year. North America provided dialysis treatments for 122,691 patients, an increase of 3%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 124,403. The International segment served 54,368 patients, an increase of 8% over last year.

As of March 31, 2008, the Company operated a total of 2,297 clinics worldwide. This is comprised of 1,640 clinics in North America, an increase of 4%, and 657 clinics in the International segment, an increase of 6%.

Fresenius Medical Care delivered approximately 6.72 million dialysis treatments worldwide during the first quarter of 2008. This represents an increase of 5% year over the same quarter last year. North America accounted for 4.65 million treatments, an increase of 4%, and the International segment delivered 2.08 million treatments, an increase of 8% over last year.

Employees

As of March 31, 2008, Fresenius Medical Care had 62,504 employees (full-time equivalents) worldwide compared to 61,406 employees at the end of 2007. The increase of approximately 1,100 employees is primarily due to the Company's overall growth in business.

Debt/EBITDA Ratio

The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 3.09 at the end of the first quarter 2007 to 2.82 at the end of the first quarter 2008. At the end of 2007, the debt/EBITDA ratio was 2.84.

Rating

Standard & Poor's has assigned upgraded debt and recovery ratings to the Company's unsecured debt issues in the first quarter of 2008. The Company's corporate credit rating as 'BB' with a ‘stable' outlook remained unchanged.

Moody's continued to rate the Company's corporate credit rating as ‘Ba2' with a ‘positive' outlook in the first quarter of 2008.

 

Outlook for 2008 fully confirmed

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

Net income is projected to be between $805 million and $825 million in 2008, an increase of 12% to 15%.

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

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

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased to have a strong start into the year, which is fully in line with our expectations and guidance. We have made good progress on our growth initiatives and continue to expand our global products and services presence. We also have expanded our corporate research activities that will benefit our future. Our new product launches in International and North America, along with the ongoing capacity expansions, provide the basis for the continued growth. We also expect the trend of anemia outcomes in the U.S. to improve further. We are confident to achieve our targets for 2008."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the first quarter of 2008 on Wednesday, April 30, 2008, at 3.30 p.m. CEDT / 9.30 a.m. EDT. The Company invites all journalists to listen to the live webcast of the meeting at the Company's website www.fmc-ag.com in the section "Investor Relations" / presentations. A replay will be available shortly after the meeting.

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

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

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

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

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

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

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

A stable outlook has been assigned to all ratings.

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

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

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

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

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

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

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

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

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Summary Second Quarter 2008 (preliminary):

Net revenue $ 2,665 million + 11%
Operating income (EBIT) $ 428 million + 9%
Net income $ 209 million + 17%

Summary First Half 2008 (preliminary):

Net revenue $ 5,177 million + 10%
Operating income (EBIT) $ 816 million + 8%
Net income $ 395 million + 17%

Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of dialysis products and services, today announced preliminary results for the second quarter and the first six months of 2008. The disclosure of the Company's preliminary results on an accelerated basis has been triggered as a result of the announcement by Fresenius SE today.

Second Quarter 2008
Based on preliminary data, the total revenue for the second quarter 2008 increased by 11% (7% at constant currency) to $2,665 million. Operating income rose by 9% to $428 million. This very good performance was based on an operating margin of 16.1% compared to 16.3% for the same quarter in 2007. Net income in the second quarter 2008 was $209 million, an increase of 17%.

First Six Months 2008
Net revenue was $5,177 million, up 10% from the first six months of 2007. Adjusted for currency, net revenue rose by 6% in this period. Operating income rose by 8% to $816 million, resulting in an operating margin of 15.8% after 16.0% in the same period in 2007. In the first six months of 2008, net income was $395 million, up 17% from the first six months of 2007.

The final figures for the first half of 2008 and the outlook for the full year will be provided on July 30, 2008, as originally scheduled.

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Summary Second Quarter 2008:

Summary First Half 2008:

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today announced its results for the second quarter and first half of 2008.

Second Quarter 2008:

Revenue

Net revenue for the second quarter of 2008 increased by 11% to $2,665 million (7% at constant currency) compared to the second quarter of 2007. Organic revenue growth worldwide was 7%. Dialysis Services revenue grew by 7% to $1,924 million (5% at constant currency) in the second quarter of 2008. Dialysis Product revenue increased by 22% to $741 million (12% at constant currency) in the same period.

North America revenue increased by 3% to $1,715 million. Organic revenue growth was 4%. Dialysis Services revenue grew by 2% to $1,533 million. Excluding the effects of the divestiture of the perfusion business in spring 2007, Dialysis Services revenue increased by 3%. Average revenue per treatment for the U.S. clinics was unchanged at $327 in the second quarter of 2008 compared to $327 for the same quarter in 2007 and $326 for the first quarter of 2008. The sequential improvement in the revenue per treatment during the second quarter of 2008 compared to the first quarter of 2008 was due to an increase in EPO utilization. The Average Selling Price (ASP) for EPO in the second quarter of 2008 remained approximately 5% less than second quarter of 2007 pricing. Dialysis Product revenue increased by 13% to $182 million. This performance was led by strong sales among the whole product portfolio including the phosphate binding drug PhosLo®.

International revenue was $950 million, an increase of 28% (14% at constant currency) compared to the second quarter of 2007. Organic revenue growth in the International segment was 14%. Dialysis Services revenue reached $391 million, an increase of 32% (19% at constant currency). Dialysis Product revenue rose 25% to $559 million (11% at constant currency), led by strong dialyzer and dialysis machine sales.
 

Earnings

Operating income (EBIT) increased by 10% to $429 million compared to $391 million in the second quarter of 2007 resulting in an operating margin of 16.1% compared to 16.3% for the second quarter 2007. This margin decrease mainly reflected the increased expenditures for our research and development activities. The strong underlying business was supported by increased reimbursement rates, dialysis services cost containment and a continued strong performance of renal products including PhosLo®. This was partially offset by a reduction in reimbursement and a lower utilization of EPO as well as start-up of new clinics and increased costs for the anticoagulant drug Heparin due to suspension of production by the principal manufacturer.

Net interest expense for the second quarter of 2008 was $82 million compared to $92 million in the same quarter of 2007. This positive development was mainly attributable to lower average interest rates associated with changes in the financing structure due to the redemption of a portion of the Trust Preferred Securities.

Income tax expense was $129 million for the second quarter of 2008 compared to $113 million in the second quarter of 2007, reflecting effective tax rates of 37.2% and 38.0%, respectively.

Net income for the second quarter 2008 was $211 million, an increase of 18%.

Earnings per share (EPS) for the second quarter of 2008 rose 18% to $0.71 per ordinary share compared to $0.60 for the second quarter of 2007. Earnings per ordinary American Depository Share (ADS) are equivalent as one ADS represents one share as a result of the change in ratio of the Company's ordinary shares and preference shares to ADSs. The weighted average number of shares outstanding for the second quarter of 2008 was approximately 296.7 million shares compared to 295.4 million shares for the second quarter of 2007. The increase in shares outstanding is due to stock option exercises in 2007 and also in the first half of 2008.

Cash Flow

In the second quarter of 2008, the Company generated $209 million in cash from operations, representing 8% of revenue. The cash flow generation was impacted by increases in inventory and other working capital.

A total of $179 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $30 million compared to $95 million in the second quarter of 2007. A total of $58 million in cash was used for acquisitions, net of divestitures.

First Half of 2008:

Revenue and Earnings

Net revenue was $5,177 million, up 10% from the first half of 2007. At constant currency, net revenue rose 6%. Organic growth was 6% in the first six months of 2008.

Operating income (EBIT) increased by 8% to $818 million compared to $756 million in the first half of 2007, resulting in an operating margin of 15.8% compared to 16.0% for the first half of 2007. This development mainly reflected higher research and development expenses. Reduced reimbursement rates for EPO and lower utilization of EPO as well as start-up cost for new clinics were offset by increases in underlying reimbursement rates, cost containment and contributions from product sales.

Net interest expense for the first six months of 2008 was $165 million compared to $187 million in the same period of 2007. The reduction was mainly due to lower average interest rates associated with changes in our financing structure.

Income tax expense was $243 million in the first half of 2008 compared to $216 million in the same period in 2007, reflecting tax rates of 37.2% and 38.0%, respectively.

For the first half of 2008, net income was $397 million, up 17% from the first half of 2007.

In the first six months of 2008, Earnings per ordinary share rose 17% to $1.34. The weighted average number of shares outstanding during the first half of 2008 was approximately 296.6 million.

Cash flow

Cash from operations during the first six months of 2008 was $401 million compared to $508 million for the same period in 2007. Cash Flow generation was impacted by higher DSO and increased inventory partially offset by increased earnings.

A total of $332 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first six months of 2008 was $69 million compared to $271 million in same period in 2007. A total of $92 million in cash was used for acquisitions, net of divestitures.

Please refer to the attachments for a complete overview on the second quarter and first half 2008.

Patients – Clinics – Treatments
As of June 30, 2008, Fresenius Medical Care treated 179,340 patients worldwide, which represents a 4% increase compared to last year. North America provided dialysis treatments for 123,784 patients, an increase of 3%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 125,559. The International segment served 55,556 patients, an increase of 8% over last year.

As of June 30, 2008, the Company operated a total of 2,318 clinics worldwide. This is comprised of 1,647 clinics in North America, an increase of 4%, and 671 clinics in the International segment, an increase of 7%.

Fresenius Medical Care delivered approximately 13.6 million dialysis treatments worldwide during the first six months of 2008. This represents an increase of 5% year over year. North America accounted for 9.39 million treatments, an increase of 3%, and the International segment delivered 4.22 million treatments, an increase of 8% over last year.

Employees
As of June 30, 2008, Fresenius Medical Care had 63,197 employees (full-time equivalents) worldwide compared to 61,406 employees at the end of 2007.

Debt/EBITDA Ratio
The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 3.03 at the end of the second quarter of 2007 to 2.86 at the end of the second quarter 2008.

Credit Rating
In March 2008, Standard & Poor's assigned debt and recovery ratings for Fresenius Medical Care AG & Co. KGaA's unsecured debt issues. Based on a recovery analysis, the rating of Trust Preferred Securities IV ($225 million) and Trust Preferred Securities V (€300 million) improved to BB from single B+. Additionally the rating of the $500 million Senior Notes due 2017 improved from BB- to BB+. In July 2008, in connection with of Fresenius SE acquisition of APP, Standard & Poor's revised its outlook from positive to negative. At the same time, all ratings, including the BB long-term corporate ratings, were affirmed.

In May 2008, Moody's raised both the corporate and the Debt Instruments' Rating of Fresenius Medical Care AG & Co. KGaA. The corporate Credit Rating improved from Ba2 to Ba1. The Senior Secured Debt under the $4.6 billion Credit Agreement received a Baa3 Investment Grade Rating. The Rating for the Unsecured $500 million Senior Notes due 2017 was raised from Ba3 to Ba2. The Ratings for the Trust Preferred Securities IV ($225 million) and Trust Preferred Securities V (€300 million) were raised from B1 to Ba3. A stable outlook was assigned to all Ratings.

Outlook for 2008

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

Net income is projected to be between $805 million and $825 million in 2008, an increase of 12% to 15%.

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

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

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented:
"We are pleased to report a strong second quarter and first half of the year 2008 in an overall challenging environment. All business segments and regions have contributed to our strong performance. This gives us the opportunity to confirm our guidance for the full year of 2008. In 2008, we have continued to make selective acquisitions, increase our research and development efforts and expand our production capacity. We are pleased with our new pharmaceutical partnership for I.V. Iron as part of our renal pharma initiative. These investments position us to continue to lead the industry in quality and efficiency and with the emerging pay for performance concepts in the service area, Fresenius Medical Care is well prepared for future growth."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and the first half year of 2008 on Wednesday, July 30, 2008, at 3:30 pm CEDT / 9:30 am EDT. The Company invites journalists to view the live webcast of the conference call at the Company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

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

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

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

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

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

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Summary Third Quarter 2008:

Summary First Nine Months 2008:

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


Third Quarter 2008:

Revenue

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

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

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


Earnings

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

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

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

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

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


Cash Flow

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

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


Nine Months Ended September 30, 2008:

Revenue and Earnings

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

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

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

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

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

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


Cash Flow

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

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

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


Patients – Clinics – Treatments

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

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

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

Employees

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

Debt/EBITDA Ratio

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

Credit Ratings

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

Outlook for 2008

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

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

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

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

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

Conference Call

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