Fresenius Medical Care AG & Co. KGaA today announced positive results from the PhosLo (calcium acetate) CARE-2 (Calcium Acetate Renagel Evaluation) study. The study demonstrated that when lipid levels are kept constant in both treatment groups, there is no difference in cardiovascular calcification between patients treated with PhosLo and those treated with Renagel (sevelamer hydrochloride). The data refute the hypothesis that the calcium in PhosLo contributes to cardiovascular calcification. The findings were presented by Dr. Wajeh Qunibi, of the University of Texas Health Science Center, San Antonio at the American Society of Nephrology's Renal Week 2006 Conference in San Diego, California.

The CARE-2 study was a randomized, controlled head-to-head comparison between PhosLo and Renagel with the addition of Lipitor (atorvastatin calcium), as appropriate, in both treatment groups to control LDL (Low Density Cholesterol) levels. The study found no statistically significant difference in the progression in cardiovascular calcification (CAC) between the two treatment groups after 12 months of treatment. Patients treated with PhosLo and Renagel achieved comparable reductions in Serum-Phosphorus and Calcium-Phosphorus product and even more importantly K/DOQI target levels were reached significantly faster with PhosLo.

PhosLo, Renagel and Lipitor are registered trademarks.

About PhosLo
PhosLo is administered orally, and when given with food, combines with dietary phosphate to form insoluble calcium phosphate complexes that are eliminated from the body, thereby reducing phosphorus absorption, helping to prevent excess blood phosphorus levels. Patients should have serum calcium levels closely monitored and their dose of PhosLo adjusted or terminated to bring levels to normal. PhosLo is contraindicated in patients with hypercalcemia. No other calcium supplements should be given concurrently with PhosLo. PhosLo is well tolerated and has an excellent safety profile. Nausea, hypercalcemia, and pruritus (itching) have occasionally been reported during PhosLo therapy.

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Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,085 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,433 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products). Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

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

For more information about the CARE-2 study visit the website: www.advancedrenaleducation.com.

As part of its 10-year anniversary, Fresenius Medical Care, the worldwide dialysis market leader, will donate € 150,000 to charitable organizations that aid dialysis patients. The German National Kidney Association (Bundesverband Niere e.V.) will receive € 50,000 while similar organizations in North America and the Asia-Pacific region will obtain the remaining € 100,000. The Company consciously decided against celebrating the occasion with receptions and parties. The approximately 18,000 members of the German National Kidney Association are dedicated to improving the lives of patients with chronic kidney disease. The Association will use the funds donated by Fresenius Medical Care for its self-help, prevention and information programs as well as to assist those affected by kidney disease.

Fresenius Medical Care looks back on ten years of successful growth. In 1996, Fresenius acquired the largest dialysis clinic operator in the world, National Medical Care, and merged the company with its own dialysis equipment division to create the new company. Fresenius used the opportunity to take a major step into the market for dialysis care. Since then, both revenue and the number of employees have more than doubled, the number of dialysis clinics has more than tripled and the Company was added to Germany's benchmark DAX 30 index in 1999.

Today, Fresenius Medical Care is the leading provider of dialysis services treating about 161,433 patients in its 2,085 own clinics worldwide. Fresenius Medical Care also is the undisputed leader in the dialysis products. When it comes to the two key products for hemodialysis, the Company has created an even wider gap to its competitors – nearly every other new dialysis machine and nearly every other new dialyzer is a Fresenius Medical Care product.

The Company remains on the path for growth. Fresenius Medical Care plans on increasing sales by 2010 to $ 11.5 billion. This growth will be attained both organically and through attractive acquisitions that further strengthen its network of dialysis clinics. The Company's unique vertical structure will also aid its expansion as its innovative products are combined with its patient care services. Furthermore, a new initiative will create horizontal growth by combining the Company's product technology, its treatment expertise and its abilities as a care provider into new "Pharma-Tech" therapies utilizing proven drugs.

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Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,085 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,433 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products). Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

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

Bad Homburg, Germany - January 24, 2005 -- 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 that it has renewed its long-term collaborative agreement with Kawasumi Laboratories, Inc. relating to the production, distribution and further enhanced marketing activities of Fresenius Polysulfone dialyzers.

With this renewal Fresenius Medical Care and Kawasumi Laboratories intensify their long-term relationship which dates back to 1990 when the joint venture Fresenius Kawasumi was founded. With the renewed agreement, both companies aim to further expand the market share of dialyzers by utilizing their efficient manufacturing technologies as well as strong domestic sales network. Fresenius Polysulfone dialyzers have a market share of 16% at the end of 2004 in the Japanese market. The ownership ratio of the Fresenius Kawasumi joint venture remains unchanged: Fresenius Medical Care holding 70%, Kawasumi Laboratories holding 30%.

Roberto Fusté, Chief Executive Officer for the Asia-Pacific region, commented: "I am very pleased that both, Fresenius Medical Care and Kawasumi Laboratories will continue to provide the most advanced and biocompatible dialyzers to the Japanese renal market. Together we will demonstrate our position as one of the leading providers for high-quality dialyzers."

Background information Japan:
With approximately 250,000 patients Japan is the biggest dialysis market in Asia-Pacific. The patient growth rate is at around 4% p.a. In addition to its dialysis product business Fresenius Medical Care, through NephroCare Japan, also provides consulting services for dialysis centers. Private companies are currently not allowed to operate dialysis clinics in Japan. Japan accounts for approximately 37% of the revenue in the Asia-Pacific region today.

Summary Full Year 2004:
The Company exceeded its financial targets, achieved record earnings and will propose the 8th consecutive dividend increase.

• Net Revenue: $ 6,228 million, +13%
• Operating Income (EBIT): $ 852 million, +13%
• Net Income: $ 402 million, +21%
• Operating Cash Flow: $ 828 million, +10%
• Free Cash Flow: $ 567 million, + 19%
• Dividend Proposal: Ordinary Share: € 1.12, + 10% Preference Share: € 1.18, + 9%

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 the results for the fourth quarter and the full year of 2004.

Operations Fourth Quarter 2004

Revenue
Total revenue for the fourth quarter 2004 increased by 13% (10% at constant currency) to $ 1,640 million. The consolidation of businesses in accordance with a new accounting regulation (FIN 46R) contributed approx. 2% to the growth rate. Dialysis Care revenue grew by 12% to $ 1,167 million (11% at constant currency) in the fourth quarter of 2004. Organic revenue growth worldwide was 6%. Dialysis Product revenue increased by 14% to $ 473 million (8% at constant currency) in the same period.

North America revenue increased by 10% to $ 1,089 million, compared to $ 993 million in the same period last year. Dialysis Care revenue increased by 10% to $ 977 million. The average revenue per treatment increased to $ 290 in the fourth quarter 2004 (Q4 2003: $ 280). Dialysis Product revenue increased by 5% to $ 112 million.

International revenue was $ 551 million, up 20% from the fourth quarter of 2003, an increase of 11% adjusted for currency. Dialysis Care revenue reached $ 190 million, an increase of 26% (17% at constant currency). Dialysis Products revenue increased by 17% to $ 361 million (9% at constant currency).

Earnings
Operating income (EBIT) increased by 10% to $ 227 million resulting in an operating margin of 13.9%. The group operating margin was impacted mainly by price pressure in Japan as a result of bi-annual reimbursement rate reductions and the implementation of the new accounting rule FIN 46R.
On a comparable basis excluding FIN 46R, the operating margin in North America remained stable at 14.6% compared to the fourth quarter 2003. In the International segment the comparable margin was 14.9% in the fourth quarter of 2004.

Group net interest expenses decreased by 11% to $ 46 million, compared to $ 52 million last year. This positive development was mainly attributable to a lower debt level based on the strong Cash Flow generation in combination with lower interest rates.

Income tax expense was $ 72 million versus $ 61 million in the fourth quarter 2003, reflecting an effective tax rate of 39.8% compared to 39.0% in the fourth quarter of last year.

Net income in the fourth quarter 2004 was $ 108 million, an increase of 14%.

Earnings per share (EPS) in the fourth quarter 2004 rose correspondingly by 14% to $ 1.12 per ordinary share ($ 0.37 per ADS), compared to $ 0.98 ($ 0.33 per ADS) in the fourth quarter of 2003. The weighted average number of shares outstanding was approximately 96.3 million.

Cash Flow
In the fourth quarter of 2004, the Company generated $ 268 million in net cash from operations, representing about 16.3% of total revenue.

A total of $ 117 million (net of disposals) was spent for capital expenditures. This resulted in a Free Cash Flow before acquisitions of $ 151 million compared to $ 104 million in the fourth quarter of 2003. The high level of Free Cash Flow was supported by the increase in net income and improvements in working capital management. In addition, the days sales outstanding (DSO) were reduced by one day to 84 days in the fourth quarter compared to the third quarter 2004. Compared with the fourth quarter of the previous year DSO were reduced by 5 days.

A total of $ 31 million in cash was spent for acquisitions. The Free Cash Flow after acquisitions increased by 33% to $ 120 million compared to $ 91 million last year.

Operations Full Year 2004:

Earnings and revenue
For the full year 2004, net income was $ 402 million, up 21% from 2003. Net revenue was $ 6,228 million, up 13% from 2003. Currency adjusted, net revenue rose 10% in 2004 as compared to 2003. Operating income (EBIT) increased by 13% to $ 852 million resulting in an operating margin of 13.7%. On a comparable basis (excl. the new accounting regulation FIN 46R) the operating margin would have been 13.85% vs. 13.7% for the year 2003.

Group net interest expenses for the full year 2004 decreased by 13% to $ 183 million, compared to $ 211 million last year. Income tax expense was $ 266 million for the full year 2004 versus $ 213 million in 2003. This reflects an effective tax rate of 39.7% compared to 39.0% for 2003.

For the full year of 2004, earnings per ordinary share rose 21% to $ 4.16. Earnings per ordinary ADS for 2004 were $ 1.39. The weighted average number of shares outstanding during 2004 was approximately 96.2 million.

Cash flow
Cash from operations during the full year 2004 was up 10% to $ 828 million compared to $ 754 million in 2003. A total of $ 261 million was spent for capital expenditures (net of disposals). This resulted in a record Free Cash Flow before acquisitions for 2004 of $ 567 million compared to $ 478 million in 2003. Net cash used for acquisitions was $ 104 million. The Free Cash Flow after acquisitions increased by 20% to $ 463 million compared to $ 386 million last year.

Patients - Clinics - Treatments
At the end of 2004, Fresenius Medical Care served about 124,400 patients worldwide which represents an increase of 4%. North America provided dialysis treatments for ~85,500 patients (+4%) and the International segment for ~38,900 patients (+6%).

As of December 31, 2004, the Company operated a total of 1,610 clinics worldwide (1,130 clinics/+2% in North America and 480 clinics/+7% International).

Fresenius Medical Care AG performed approximately 18.8 million treatments in 2004, which represents an increase of 5% year over year. North America accounted for 12.9 million treatments (+4%) and the International segment for 5.9 million (+8%).

Dividends:

The Company will continue to follow an earnings-driven dividend policy. For the eighth consecutive year, shareholders can expect an increased dividend for the fiscal year 2004. At the Annual General Meeting on May 24, 2005 shareholders will be asked to approve a dividend of € 1.12 per ordinary share (2003: € 1.02/+10%) and € 1.18 per preference share (2003: € 1.08/+9%).

Outlook 2005:

For the year 2005, the Company expects a revenue growth at constant currencies between six and nine percent and net income growth in the low double-digit range.

Furthermore, the Company expects capital expenditures of about $ 350-400 million and spending on acquisitions of about $ 200-250 million.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our results for the fourth quarter and the full year 2004 demonstrate solid operating fundamentals that translate into strong top line revenue growth and bottom line net income growth. We have accomplished record earnings in 2004. We are particularly pleased with the results of Europe, North America and Latin America. In addition, our Free Cash Flow performance was very strong. This accomplishment gives us the opportunity to increase investments going forward which will sustain our future growth."

Video Webcast
Fresenius Medical Care will hold a press conference at its headquarters in Bad Homburg, Germany, to discuss the results of the fourth quarter and the full year of 2004 on February 24, 2005 at 10 a. m. CET. You are cordially invited to listen to the live video webcast of the meeting at the Company's website www.fmc-ag.com. A replay will be available shortly after the meeting.

For the second time, Fresenius Medical Care AG's Schweinfurt plant has won second place in the annual "Best Factory" competition from French management school INSEAD and the Otto Beisheim Graduate School of Management in Koblenz, also known by its German abbreviation WHU. The two schools launched the international, cross-sector contest in 1995 to reward European companies for excellent production management that guarantees a competitive advantage. The Schweinfurt production site from Fresenius Medical Care first won second place in 1999.

"The latest award is a confirmation that the plant is strategically well-positioned for the coming years," said Deputy Plant Manager Rolf Näder. "The employees, the works council and the plant management work together every day to ensure the site's international competitiveness using an efficient and innovative work organization. We are very proud of this." In explaining its decision, the jury praised the Schweinfurt plant's informal communication culture, the close cooperation with the works council and the flexible shifts. "The Company orients its growth strategy towards the worldwide market. Despite being already the market leader it sets itself apart through a high quality level and a strong customer focus," said Professor Arnd Huchzermeier from the WHU.

More than 650 employees develop and produce dialysis machines at the plant, which was founded in 1979. These machines are used to treat the blood. "As the leading innovator and through close cooperation with dialysis clinics, Fresenius Medical Care has played a role in significantly improving the treatment quality and lowered operating costs for providers," said Professor Huchzermeier. Last year, the plant was able to increase the production of dialysis machines for markets outside North America by nearly 20 percent.

The employees at the Schweinfurt plant are organized into groups that operate as independent units within the Company and are responsible for the individual markets. Each team is responsible for costs, inventories, delivery schedules and product quality. "Production department and development sites must rethink their roles and see themselves as service provider for the sales division – this is a demand we meet every day," Näder said. Already in 2000, this strategy led to another international, sector-independent award– the "Global Excellence in Operations Award" from management consultants A.T. Kearney. Already at that time the jury emphasized the plant's exceptionally efficient organization of dialysis machine development and production.

The "Best Factory of 2005" prize will be awarded to the national winners during a management symposium in the fall.

Bad Homburg, Germany – 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 it has received U.S. FDA (Food and Drug Administration), 510(k) clearance for an advanced device to be used by patients who perform dialysis in the home setting. This proprietary device, the Liberty™ Cycler, is designed for use in Automated Peritoneal Dialysis (APD) therapy, which is the fastest growing home therapy for the treatment of end-stage renal disease (ESRD). Receipt of the 510(k) indicates that the Liberty™ Cycler has met the requirements for notifying the FDA prior to commercial distribution of new medical devices and that Fresenius Medical Care may market this device within the United States.

The Liberty™ Cycler provides the latest technology to patients being treated for ESRD at home. The cycler combines advanced pumping technology with ease of use. The Liberty Cycler's unique ergonomic design, easily taken for a common household appliance, was created to blend unobtrusively into the patient's home.

Rice Powell, President of Products and Hospital Group & Co-CEO of Fresenius Medical Care North America: "We're pleased to have reached this significant milestone. We're looking forward to providing nephrologists and their patients in the United States, and Canada with an APD cycler designed from the ground up with home therapy in mind. Based on our initial feedback from leading nephrologists, we believe that there will be a strong reception for this innovative, easy-to-use product."

Fresenius Medical Care North America, a subsidiary of 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 that the Partnership HealthPlan of California (PHC), has launched a special program geared to care for its patients with chronic kidney disease. PHC, which estimates that it has 40-50 members who are eligible for the program, is contracting with Optimal Renal Care, one of the largest providers of kidney disease management services in the country. The overall goal of the program is to improve the outcomes and quality of life for the members who typically face three lengthy dialysis treatments a week.

"PHC is very pleased to enter this partnership with Optimal Renal Care. Optimal Renal Care is recognized as a leader in the field of disease management in this area and they have shown excellent results in improving clinical outcomes for patients on dialysis in other areas. Together, we expect to improve the health and quality of life for our members afflicted with chronic kidney disease," according to Dr. Chris Cammisa, medical director at PHC.

People who have chronic kidney disease and who receive regular dialysis treatments are at risk for serious complications, including infection that can lead to hospital stays, from that treatment. However, if they follow a recommended diet and make positive lifestyle changes, they are better able to better deal with their condition.

The program will utilize a care management team that consists of a registered nurse, a social worker, dietician and a pharmacist. This team will prepare individual treatment plans and provide education material that is specific to each member's needs. In addition, they will go to dialysis centers to work with nephrologists and staff to better coordinate care for members enrolled. The team follows the patient through all the aspects of care, which often include major co-morbid conditions such as diabetes, high blood pressure and heart failure.

Mats Wahlstrom, President "Medical Services" & Co-CEO of Fresenius Medical Care North America commented: "We're pleased that we have entered into the agreement with PHC. This is a confirmation of our strategy to further expand in the Disease State Management arena. DSM equally benefits all those involved."

Bad Homburg, Germany – 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 that the Products and Hospital Group (PHG) of its subsidiary Fresenius Medical Care North America (FMCNA), headquartered in Lexington, Massachusetts, acquired Haemotec, Inc., a Quebec, Canada based manufacturer of hemodialysis concentrates. Haemotec, Inc. is the market leader in Canada with well over 40% market share. The Canadian concentrate market is valued at 22.0 million Canadian Dollar and is projected to grow at approximately 5% per annum. The Products and Hospital Group of FMCNA will strengthen its position as the leading renal products company in Canada. The acquisition will be accretive to earnings within the first year.

Rice Powell, President of the Products and Hospital Group and Co-CEO of Fresenius Medical Care North America, said: "This is clearly a logical step when it comes to building our dialysis products manufacturing capabilities and base. Canada is an excellent market for us. This investment is part of our capital expenditure budget for 2005 and we expect to achieve further market momentum."

Summary First Quarter 2005:
 

• Net Revenue : $ 1,609 million, + 10%
• Operating income (EBIT): $ 220 million, + 11%
• Net incombe: $ 107 million, + 18%
• Operating Cash Flow: $ 138 million, - 19%
• Free Cash Flow: $ 98 million, - 25%

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 the results for the first quarter 2005.

Revenue
Total revenue for the first quarter 2005 increased by 10% (9% at constant currency) to $1,609 million. Total organic revenue growth worldwide was 7%. Consolidation resulting from FIN 46R interpretation added 2% to the revenue growth. Dialysis Care revenue grew by 10% to $1,162 million (9% at constant currency) in the first quarter of 2005. Dialysis Product revenue increased by 11% to $447 million (7% at constant currency) in the same period.

North America revenue increased by 9% to $1,088 million, compared to $1,003 million in the same period last year. Dialysis Care revenue increased by 8% to $968 million. The average revenue per treatment for the U.S. clinics increased by 2.5% to $293 in the first quarter 2005 (Q1 2004: $286). Same-store treatment growth was 3.8%. Dialysis Product revenue increased by 16% to $120 million.

International revenue was $521 million, up 14% from the first quarter of 2004 (8% at constant currency). Dialysis Care revenue reached $194 million, an increase of 22% (16% at constant currency). Dialysis Product revenue increased by 10% to $327 million (4% at constant currency).

Earnings
Operating income (EBIT) increased by 11% to $220 million resulting in an operating margin of 13.7% (Q1 2004: 13.6%).

Compared with the first quarter 2004, the operating margin in North America remained nearly unchanged at 13.4%. On a comparable basis (excluding FIN 46R consolidations) the operating margin in North America was at 13.7% compared to 13.5% in the first quarter 2004. In our International segment the margin increased by 20 basis points to 15.8% compared to the first quarter in the previous year.

Group net interest expenses decreased by 9% to $42 million, compared to $47 million last year. This positive development was mainly attributable to a lower debt level in combination with lower interest rates.

Income tax expense was $70 million versus $60 million in the first quarter 2004, reflecting an effective tax rate of 39.2% compared to 39.4% in the first quarter of last year.

Net income in the first quarter 2005 was $ 107 million, an increase of 18%. Earnings per share (EPS) in the first quarter 2005 rose by 18% to $1.11 per ordinary share ($0.37 per ADS), compared to $0.94 ($0.31 per ADS) in the first quarter of 2004. The weighted average number of shares outstanding was approximately 96.3 million.

Cash Flow
In the first quarter of 2005, the Company generated $138 million in net cash from operations compared to $171 million last year. The decrease was mainly due to higher income tax payments in North America.

A total of $40 million (net of disposals) was spent for capital expenditures. This resulted in a Free Cash Flow before acquisitions of $98 million compared to $130 million in the first quarter of 2004. The Free Cash Flow performance was driven by the increase in net income. The days sales outstanding (DSO) remained unchanged at 84 days in the first quarter 2005 compared to the fourth quarter 2004. Compared with the first quarter of the previous year DSO were reduced by 2 days.

A total of $22 million in cash was spent for acquisitions. The Free Cash Flow after acquisitions decreased by 13% to $76 million compared to $88 million last year.

For a complete overview of the first quarter 2005, please refer to the appendix.

Patients - Clinics - Treatments
At the end of the first quarter 2005, Fresenius Medical Care served about 125,900 patients worldwide which represents an increase of 5%. North America provided dialysis treatments for ~87,000 patients (+4%) and the International segment for ~38,900 patients (+6%).

As of March 31, 2005, the Company operated a total of 1,630 clinics worldwide (1,140 clinics/+2% in North America and 490 clinics/+8% International).

Fresenius Medical Care AG performed approximately 4.72 million treatments, which represents an increase of 3% year over year. North America accounted for 3.25 million treatments (+3%) and the International segment for 1.47 million (+5%).

Outlook 2005
For the year 2005, the Company confirms its outlook before the impact of the Renal Care Group acquisition. The Company expects a revenue growth at constant currency between six and nine percent and net income growth in the low double-digit range.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our results for the first quarter 2005 show a solid start for the year. We are pleased that all regions and business segments grew at or above market. Revenue growth in Europe and North America evidenced continued strong momentum. With this solid foundation we have initiated plans to increase our investments in the core dialysis business to assure strong financial growth."

Webcast of Press Conference
Fresenius Medical Care will also host a Press Conference on May 04, 2005 at 12am CET at its headquarters in Bad Homburg. The Company invites journalists to listen to the live video webcast of the meeting at the Company's website www.fmc-ag.com. A replay will be available shortly after the meeting.

The transaction combines the key success factors in the industry – an attractive payor mix and cost leadership – under the common vision of high quality of care and a shared dedication to innovative treatment models and compliance.

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 it has entered into a definitive agreement to acquire Renal Care Group, Inc (NYSE: RCI), Nashville, Tennessee, for a price of $48.00 per share in cash. The total net consideration for the acquisition of all outstanding shares of Renal Care Group, Inc., is $3.5 billion (on a fully diluted basis), which will be all-debt financed. The acquisition is anticipated to be neutral to slightly accretive to earnings in 2006 and clearly accretive to earnings in 2007 and thereafter.

Renal Care Group, Inc. is a fast-growing, highly profitable dialysis service provider that will be an attractive complement to Fresenius Medical Care's U.S. business. In 2004, Renal Care Group's revenue was approx. $1.35 billion with an EBIT of $254 million and a net income of $122 million. As of March 31, 2005, Renal Care Group owned more than 425 dialysis clinics and served over 30,400 patients. Renal Care Group generates an industry-leading share of 43% of its revenue from private payors.

The 2004 pro forma combined revenue of Fresenius Medical Care and Renal Care Group was approximately $7.5 billion. On a pro forma combined basis as of March 31, 2005, Fresenius Medical Care and Renal Care Group served approximately 117,000 patients in over 1,560 clinics in North America and more than 156,000 patients in over 2,000 dialysis clinics worldwide.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "This acquisition solidifies Fresenius Medical Care's position as the leader in dialysis services in the U.S. With its service network, Renal Care Group provides an excellent strategic and geographic fit to Fresenius Medical Care's operations in the world's largest dialysis market. We are convinced that this acquisition will enhance the Company's growth prospects and profitability. This step combines the excellent and experienced management teams of both companies. Furthermore, Fresenius Medical Care will be well positioned to create additional growth potential for its dialysis product business and will provide opportunities to successfully leverage the Company's cost leadership position through its combination with Renal Care Group".

Gary Brukardt, President and Chief Executive Officer of Renal Care Group, commented: "We are very pleased with this agreement. Both companies, Renal Care Group and Fresenius Medical Care, have three key assets in common: a strong commitment to continuous quality improvement, dedicated and highly-motivated people and experienced and visionary management teams. This combination clearly gives us an opportunity to create a superior platform for innovation in the delivery of services and products and will further enhance the lives of patients entrusted to our care".

At a price of $48.00 per share in cash, shareholders of Renal Care Group would receive a premium of 22% over yesterday's closing price. Fresenius Medical Care plans to finance the acquisition primarily through an extension of its senior credit agreement. The existing $1.2 billion credit agreement will be replaced by a $5.0 billion senior credit facility. Financing commitments have been received from Bank of America and Deutsche Bank, and are subject to customary conditions. Deutsche Bank acted as financial advisor to Fresenius Medical Care for this acquisition.

The transaction is subject to the approval of Renal Care Group's shareholders and other customary closing conditions, including the expiration of the waiting period under the Hart-Scott Rodino Antitrust Improvements Act. The Company anticipates to close this transaction in the second half of 2005.

Press Conference
Fresenius Medical Care will also host a Press Conference on May 04, 2005 at 12 a. m. (CET) at its headquarters in Bad Homburg. The Company invites journalists to listen to the live video webcast of the meeting at the Company's website www.fmc-ag.com. A replay will be available shortly after the meeting.