Fresenius tightens organisational structure

With effect from 1 January 2003, the Fresenius healthcare group will rebundle its activities: The four divisions of the business segment Fresenius HemoCare are being reallocated within the Fresenius group. As a consequence, the Fresenius group will be divided into three independent business segments - Fresenius Medical Care, Fresenius Kabi and Fresenius ProServe.

This is a decisive step to increase the efficiency of the whole group: The individual business segments will be strengthened as a result of this measure; they will operate more effectively and be better able to meet the needs of the market. Also, the existing experience and knowledge can be better leveraged.

In detail, the following changes will be implemented:
Due to their technological similarities, the Infusion Technology and the Transfusion Technology Divisions of Fresenius HemoCare will be gathered under one uniform management and assigned to Fresenius Kabi. The steadily growing link of products to systems offered to hospitals, including infusion solutions and applications systems, will generate clear market advantages in the future, particularly in this field, and will open up new opportunities for growth. Through the new structure, the infusion and transfusion technology products will be able to be marketed more intensively in future via Fresenius Kabi's international distribution network.

It is intended that the Adsorber Technology Division of Fresenius HemoCare will be transferred to Fresenius Medical Care. The combination of medical and technological know-how in the field of extracorporeal blood treatment will generate further therapy impulses. At the same time, this measure is in line with Fresenius Medical Care's strategy to further strengthen extracorporeal therapies outside dialysis, both in the USA and internationally. Through this combination, Fresenius Medical Care's worldwide network of dialysis clinics can be utilized for adsorber treatment - the extracorporeal removal of pathogenic substances from the blood - e.g. for patients suffering from rheumatoid arthritis.

The Immune Therapy Division of Fresenius HemoCare concentrates on the development of products and procedures for immune and cell therapies. Due to the importance of the related research and development projects, this division requires intensive management attention and control. In order to foster developments in an even more targeted way, Immune Therapy will, therefore, be allocated directly to Fresenius AG, under the responsibility of the Chairman of the Managing Board.

Fresenius HemoCare generated sales of € 169 million in the first nine months of the year 2002, of which 82% were achieved by the Infusion Technology and Transfusion Technology Divisions, 10% by the Adsorber Technology Division and 8% by Immune Therapy.
EBIT amounted to € 7 million in the first three quarters of 2002.

As of the first quarter of 2003, the financial reporting system of the Fresenius Group will be based on this new structure.