Fresenius ProServe to focus on core activities - Agreement reached on the sale of nursing care business

Fresenius ProServe has reached an agreement to sell its subsidiary hospitalia care to Kursana Residenzen GmbH, Berlin, a division of the Dussmann Group. hospitalia care currently operates and manages 23 nursing care facilities in Germany with more than 2,600 beds. The Company had sales of € 27 million in 2003 and approximately 760 employees. The sale is subject to certain conditions, including the approval of the antitrust authorities.

Kursana operates 16 retirement residences and 30 retirement care centres in Germany, Austria, Switzerland and Estonia and will become the second largest private nursing care operator in Germany through the purchase of hospitalia care. Kursana's excellent quality standards will ensure high-quality care at hospitalia care's facilities going forward.

The sale of the nursing care activities is a further significant step by Fresenius ProServe to focus on its core business activities:

• hospital management in Germany, Wittgensteiner Kliniken AG
• hospital engineering and services, VAMED AG
• engineering and services for the pharmaceutical industry, Pharmaplan GmbH. ´

The company has already put all of its hospital engineering activities under the management of VAMED and has focussed the geographic presence of Pharmaplan on key markets. Fresenius ProServe has also discontinued the international hospital management activities of its subsidiary hospitalia activHealth. The sale of hospitalia care completes the strategic reorientation of Fresenius ProServe.

In this context, Fresenius ProServe confirms its full-year targets for 2004 and a sales increase of around 10%. EBIT is expected to reach between € 15 million and € 20 million before one-time expenses. One-time expenses are expected to be in the range of € 8 million. These expenses will cover the restructuring costs needed to adjust to the current market environment.