Fresenius Medical Care Reports Preliminary Third Quarter and Nine Months 2005 Results; Outlook for 2005 Confirmed

Strong Third Quarter 2005 (preliminary):

• Net Revenue: $ 1,717 million, + 9%
• Operating Income (EBIT): $ 235 million, + 10%
• Operating Income (EBIT) excluding one-time costs: $ 242 million, + 13%
• Net Income: $ 115 million, + 13%
• Net Income excluding one-time costs: $ 119 million, + 17%

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 preliminary results for the third quarter and the first nine months of 2005. The disclosure of the Company's preliminary results on an extraordinary basis has been triggered to support the financing announced by Fresenius AG today.


Third Quarter 2005:

Based on preliminary data, the total revenue for the third quarter 2005 increased by 9% (8% at constant currency) to $1,717 million.

Operating income (EBIT) increased by 10% to $235 million. Operating income in the third quarter 2005 includes $7 million of one-time costs related to the transformation of Fresenius Medical Care's legal form into a Kommanditgesellschaft auf Aktien (KGaA). As previously announced the Company expects one-time costs for the full year 2005 to be approximately $10 million for the transformation and the conversion of the preference shares into ordinary shares. This amount includes the one-time costs in Q3 2005.

Excluding one-time costs the operating income for the third quarter 2005 increased by 13% to $242 million. This very good performance resulted in an operating margin of 14.1% compared to 13.6% for the same quarter in 2004.

Net income in the third quarter 2005 was $115 million, an increase of 13%. Excluding one-time costs the net income increased by 17% to $119 million.


First Nine Months 2005:

Net revenue was $5,000 million, up 9% from the first nine months of 2004. Adjusted for currency, net revenue rose by 8% in this period.
Operating income (EBIT) increased by 11% to $694 million. Operating income for the first nine months of 2005 includes $8 million of one-time costs related to the transformation of Fresenius Medical Care's legal form into KGaA. Excluding one-time costs the operating income increased by 12% to $702 million resulting in an operating margin of 14.0% after 13.6% in the same period in 2004.

In the first nine months of 2005, net income was $338 million, up 15% from the first nine months of 2004. Excluding one-time costs the net income increased by 17% to $343 million.

Detailed results of Fresenius Medical Care will be reported on November 03, 2005.


Outlook 2005 – Confirmed
For the year 2005, the Company reconfirms its outlook and expects a top-line revenue growth at constant currency between 6% and 9% and a net income growth between 12% and 15%. The Company expects to achieve the upper end of the net income guidance.
This guidance does not take into effect the impact of the Renal Care Group acquisition or the one-time costs for the full year 2005 in connection with the transformation of the Company's legal form, or the conversion of the preference shares into ordinary shares.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are very pleased with our preliminary financial results for the third quarter 2005 and we are clearly on track to achieve our full year targets."