• Sales: € 11.4 billion, + 5 % at actual rates, + 10 % in constant currency
• EBIT: € 1.6 billion, + 11 % at actual rates, + 17 % in constant currency
• Net income: € 410 million, + 24 % at actual rates, + 28 % in constant currency
• All financial targets met or exceeded
• Double-digit EBIT growth in all business segments
• Strengthened market position through targeted acquisitions
• 15th consecutive dividend increase

Dividend increase of ~15 % per share proposed
Based on the excellent financial results the Management Board will propose to the Supervisory Board a dividend increase of ~15 % to € 0.66 per ordinary share (2006: € 0.57) and € 0.67 per preference share (2006: € 0.58). The corresponding total dividend distribution amounts to € 103.2 million (2006: € 88.8 million).

Positive outlook for 2008: Substantial sales and earnings growth expected
For 2008, Fresenius Group projects further improvements in its financial results: Group sales are expected to grow by 8 to 10 % in constant currency. Net income is expected to increase by 10 to 15 % in constant currency. All business segments are expected to contribute to this growth.

Investments in property, plant and equipment and in intangible assets are planned to increase from € 705 million in 2007 to ~€ 750 million.

Strong sales growth across all business segments and regions
Group sales increased by 10 % in constant currency and by 5 % at actual rates to € 11,358 million (2006: € 10,777 million). Organic sales growth was 6 %. Acquisitions contributed a further 6 %. Divestitures reduced sales growth by 2 %. Currency translation had a negative impact of 5 %. This is mainly attributable to the average US dollar rate depreciating 9 % against the Euro.

Sales growth in the business segments was affected as follows:

In Europe sales grew by 7 % in constant currency with organic sales growth contributing 5 %. In North America sales grew by 10 % in constant currency due to the full-year Renal Care Group consolidation and an organic growth rate of 5 %. Strong growth rates were achieved in the emerging markets with organic growth of 9 % in Asia-Pacific, 10 % in Latin America and 26 % in Africa.

Excellent earnings growth and strong margin improvement
Group EBITDA increased by 15 % in constant currency and by 10 % at actual rates to € 2,030 million (2006: € 1,843 million). Group operating income (EBIT) grew by 17 % in constant currency and by 11 % at actual rates to € 1,609 million (2006: € 1,444 million). The Group's EBIT margin improved by 80 basis points to 14.2 % (2006: 13.4 %).

Group net interest was € -368 million (2006: € -395 million, including one-time expenses of € 30 million for the early refinancing of Group debt).

The tax rate was 36.1 % (2006: 39.5 %; adjusted for the tax expense related to the divestiture of US dialysis clinics: 37.2 %).

Minority interest increased to € 383 million (2006: € 305 million), of which 92 % was attributable to the minority interest in Fresenius Medical Care.

Group net income grew strongly by 28 % in constant currency and by 24 % at actual rates to € 410 million (2006: € 330 million, including one-time expenses of € 22 million). Earnings per ordinary share were € 2.64 and earnings per preference share were € 2.65 (2006 adjusted for the February 2007 share split: ordinary share € 2.15, preference share € 2.16). This represents an increase of 23 % for both share classes.

Investments in property, plant and equipment at high level
Fresenius Group spent € 705 million for property, plant and equipment and intangible assets (2006: € 600 million). The increase is mainly attributable to the business segments Fresenius Medical Care and Fresenius Helios. Acquisition spending was € 613 million (2006: € 3,714 million). All business segments strengthened their market position through targeted acquisitions.

Strong cash flow
Operating cash flow increased by 23 % to € 1,296 million (2006: € 1,052 million). Key driver was the strong increase in earnings. Cash flow margin was 11.4 % (2006: 9.8 %). Cash flow before acquisitions and dividends increased by 31 % to € 630 million (2006: € 481 million). Free cash flow after acquisitions (€ 392 million) and dividends (€ 205 million) was € 33 million (2006: € -2,909 million).

Solid balance sheet structure: Leverage ratio improved
Fresenius Group's total assets increased by 8 % in constant currency and by 2 % at actual rates to € 15,324 million (December 31, 2006: € 15,024 million). Current assets increased by 5 % to € 4,291 million (December 31, 2006: € 4,106 million). Non-current assets were € 11,033 million (December 31, 2006: € 10,918 million).

Shareholders' equity including minority interest grew by 6 % to € 6,059 million (December 31, 2006: € 5,728 million). The equity ratio (including minority interest) was 39.5 % (December 31, 2006: 38.1 %).

Group debt decreased by 3 % at actual rates to € 5,699 million (December 31, 2006: € 5,872 million). In constant currency, Group debt increased by 3 %. The net debt/EBITDA ratio improved to 2.6, well below the level of 3.0 as of December 31, 2006.

Number of employees increased
As of December 31, 2007, Fresenius increased the number of its employees by 9 % to 114,181 (December 31, 2006: 104,872). The increase is mainly attributable to the business segments Fresenius Medical Care and Fresenius Helios.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.

Following the successful completion of the phase II/III study with Removab® in the indication malignant ascites, Fresenius Biotech dispatched the marketing authorization application to the European Medicines Agency (EMEA) in December 2007. The company applies for the EU authorization of Removab® for the intraperitoneal treatment of malignant ascites in patients with epithelial cancers where no standard therapy is available or no longer feasible. EMEA started the scientific evaluation of the dossier at the end of January 2008. In additional phase II studies Fresenius Biotech is focusing on the use of Removab® for solid tumors in the indications ovarian cancer and gastric cancer.

For the future marketing of Removab® in the USA and Japan, Fresenius Biotech is in discussions with potential partners.

Phase II studies with the antibody Rexomun® (ertumaxumab) in the indication breast cancer are ongoing.

In 2007, Fresenius Biotech's operating income (EBIT) was € -50 million (2006: € -45 million). For 2008, Fresenius Biotech expects an EBIT of approximately € -50 million.

The Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of December 31, 2007, Fresenius Medical Care was serving 173,863 patients in 2,238 dialysis clinics.

• Sales increased by 14 % to US$ 9.7 billion
• Net income well above guidance
• Outlook 2008: Sales growth of more than 7 % and net income growth
• of 12 to 15 % expected

In 2007, Fresenius Medical Care achieved excellent sales growth of 14 % to US$ 9,720 million (2006: US$ 8,499 million). This was mainly driven by organic growth of 6 % and by the full-year consolidation of Renal Care Group. Sales in dialysis care increased by 13 % to US$ 7,213 million (2006: US$ 6,377 million). In dialysis products, sales grew by 18 % to US$ 2,507 million (2006: US$ 2,122 million).

In North America sales increased by 11 % to US$ 6,663 million (2006: US$ 6,025 million). Sales outside North America ("International" segment) grew by 24 % (in constant currency: 15 %) to US$ 3,057 million (2006: US$ 2,474 million). Strong sales growth in constant currency was achieved in Europe (+9 %), Latin America (+14 %), and the Asia-Pacific region (+40 %).

EBIT rose by 20 % to US$ 1,580 million (2006: US$ 1,318 million). The EBIT margin was 16.3 % (2006: 15.5 %). Net income increased by 34 % to US$ 717 million (2006: US$ 537 million, including one-time expenses of US$ 37 million).

In November 2007, Fresenius Medical Care announced the acquisition of Renal Solutions, Inc. (RSI). With the RSI transaction, Fresenius Medical Care is acquiring a key technology for the expansion of home hemodialysis.

For 2008, Fresenius Medical Care expects to achieve revenue of more than US$ 10.4 billion, an increase of more than 7 %. Net income is expected to be between US$ 805 million and US$ 825 million, an increase of 12 % to 15 %.

For further information, please see Fresenius Medical Care's press release at www.fmc-ag.com.  

Fresenius Kabi
Fresenius Kabi offers infusion therapies and clinical nutrition for seriously and chronically ill patients in the hospital and out-patient environments. The company is also a leading provider of transfusion technology products.

• Sales exceed 2 billion euros for the first time
• Targeted acquisitions strengthen market position
• Outlook 2008: Strong sales growth and EBIT margin of around 16.5 %

Fresenius Kabi increased sales by 7 % to € 2,030 million (2006: € 1,893 million). The company achieved excellent organic growth of 8 %, at the upper end of the guidance of 6 to 8 %. Acquisitions contributed 1 % to sales. Currency translation effects had a negative impact of 2 %. This was mainly due to the depreciation of currencies in South Africa, China, Mexico and Canada.

Organic sales growth in Europe (excluding Germany) was 5 %. In Germany organic sales growth was 2 %. In the Asia-Pacific region Fresenius Kabi achieved significant organic sales growth of 22 %. Organic sales growth in Latin America was 9 % and in other regions 10 %.

Fresenius Kabi continued its excellent earnings growth in 2007. EBIT grew by 14 % to € 332 million (2006: € 291 million). The EBIT margin improved by 100 basis points to 16.4 % (2006: 15.4 %). Fresenius Kabi reported strong growth in net income of 28 % to € 183 million (2006: € 143 million, including one-time expenses for early debt refinancing of € 11 million).

In the fourth quarter of 2007, Fresenius Kabi announced acquisitions to strengthen its business activities especially in the fields of clinical nutrition and intravenously administered generic drugs (I.V. drugs). Fresenius Kabi acquired from Nestlé S.A. the enteral nutrition businesses in France (Novartis Nutrition) and in Spain (Nestlé España). In addition, Fresenius Kabi acquired the Chilean company Laboratorio Sanderson S.A. and the Italian company Ribbon S.r.L. Aggregate sales of the three acquired businesses was about € 128 million in 2007.

Fresenius Kabi expects to continue its positive financial performance in 2008. The company targets sales growth in constant currency of 12 to 15 %. Organic growth is expected to contribute 7 % to this target. Strong growth is anticipated in particular from the Asia-Pacific and Latin America regions. Further, Fresenius Kabi forecasts an EBIT margin of around 16.5 %. It is anticipated that the recent acquisitions will initially contribute to Fresenius Kabi's EBIT at a margin below par, also due to amortization of intangible assets. Adjusted for the recent acquisitions, Fresenius Kabi's EBIT margin is expected to progress into the range of 16.5 to 17 %.

Fresenius ProServe
As from January 1, 2008, the former business segment Fresenius ProServe has been replaced by the two business segments Fresenius Helios and Fresenius Vamed. These two businesses had previously made up the business segment Fresenius ProServe. The financial results of Fresenius Helios and Fresenius Vamed are already presented separately on the following pages for the full-year 2007.

The financial performance at Fresenius ProServe was as follows:

Sales grew by 5 % to € 2,268 million (2006: € 2,155 million). Organic growth was 3 %. EBIT increased by 18 % to € 181 million (2006: € 154 million). The EBIT margin improved to 8.0 % (2006: 7.1 %).

Organic sales growth guidance of 2 - 3 % and EBIT projection of > € 170 million was fully achieved.

The subsidiaries Pharmaplan and Pharmatec were divested and deconsolidated as from January 1, 2007, and June 30, 2007, respectively.

Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 60 hospitals, including five maximum care hospitals in Erfurt, Berlin-Buch, Wuppertal, Schwerin and Krefeld. HELIOS treats about 500,000 inpatients per year at its clinics and has a total of approximately 17,200 beds.

• Sales and earnings substantially increased
• Expansion in the German hospital market continued
• Outlook 2008: Sales of more than 2 billion euros expected

Fresenius Helios increased sales by 10 % to € 1,841 million (2006: € 1,673 million), and achieved very good organic growth of 3 %. Acquisitions contributed 9 %, divestitures reduced sales growth by 2 %.

EBIT increased by 17 % to € 155 million (2006: € 133 million). The EBIT margin improved by 50 basis points to 8.4 %. Fresenius Helios achieved this very good result despite a number of external negative factors: the increase in value-added tax, wage tariff increases, and the 0.5 % budget cut for the stabilization of public health costs all affected earnings. Net income improved by 8 % to € 64 million (2006: € 59 million).

In the fourth quarter of 2007, Fresenius Helios acquired 74.9 % of Krefeld Municipal Hospitals (Krefeld and Hüls). Both hospitals together have approximately 3,300 employees and achieved sales of about € 175 million in 2006. The hospitals are consolidated in the Group's balance sheet as of December 31, 2007.

The outlook for the full year 2008 remains very positive. Fresenius Helios expects to achieve sales of more than € 2,050 million. EBIT is projected to increase to € 160 to 170 million, despite the initially negative contribution of the Krefeld Municipal Hospitals.

Fresenius Vamed
Fresenius VAMED offers engineering and services for hospitals and other health care facilities.

• Order intake and order backlog at all-time high
• Acquisition in the service business for hospitals
• Outlook 2008: Sales and EBIT growth of 5 – 10 % expected

Fresenius Vamed achieved sales growth of 4 % to € 408 million (2006: € 392 million). The project business generated sales of € 259 million (2006: € 249 million), sales in the service business was € 149 million (2006: € 143 million), an increase of 4 % in each segment.

EBIT was € 26 million (2006: € 23 million). The EBIT margin improved to 6.4 % (2006: 5.9 %). Net income increased by 15 % to € 23 million (2006: € 20 million).

Order intake in the project business grew by 17 % to € 395 million (2006: € 337 million). In the fourth quarter of 2007, order intake rose by 70 % compared to the same quarter of the previous year and reached € 173 million. Order backlog as of December 31, 2007, was € 510 million (December 31, 2006: € 387 million).

In February 2008, Fresenius Vamed announced that it had signed an agreement to acquire the hospital planning, consulting and service company HERMED in Germany. Both regionally and strategically, HERMED fits perfectly to the business of VAMED. VAMED concentrates on larger hospitals whereas HERMED focuses on smaller and medium-sized health care facilities. HERMED achieved sales of around € 12 million in 2007.

In 2008, Fresenius Vamed expects to achieve sales growth and an increase in EBIT of 5 to 10 %.

Press Conference and Video Webcast
As part of the publication of the results for fiscal year 2007, a press conference will be held at the Fresenius headquarters in Bad Homburg on February 20, 2008 at 10 a.m. CET. All journalists are cordially invited to follow the conference in a live broadcast over our Website. Following the meeting, a recording of the conference will be available as video-on-demand.

Annual report
The annual report 2007 will be available from March 11, 2008 at www.fresenius.com / Investor Relations / Financial reports.

Due to strong global demand, Fresenius Medical Care is expanding the capacity for producing dialysis products at its plant in St. Wendel, Germany. The Company will invest a total of approximately €39 million over the next 12 months.

About €23 million will be invested in an additional building and two new spinning lines for hollow fibers, the key component of dialyzers (artificial kidneys). Production capacity for these fibers, which are also used to manufacture dialyzers at other locations, will increase by about 30 % at St. Wendel.

Fresenius Medical Care will invest about €16 million to increase the production capacity for bags used in peritoneal dialysis. This should increase capacity by some 25%.

At the beginning of 2007, the Company had already announced an increase to the dialyzer production capacity at the St. Wendel plant. Some €36 million were committed to the project, which will boost annual capacity for single-use dialyzers to 35 million. This equipment will be brought on line in the coming months and the two latest expansion measures announced today should be completed in spring of 2009. The committed total amount for all ongoing projects at St. Wendel is about €100 million (US$150 million).

Fresenius Medical Care currently employs about 1,700 people at the St. Wendel development and production site. A further increase in the number of employees is expected for 2008.

Dr. Ben Lipps, Chief Executive Officer of Fresenius Medical Care commented: "Demand for our innovative dialyzers and other high-quality dialysis products continues to climb. The capacity expansion at the St. Wendel manufacturing site meets this steady increase and ensures that an even larger number of patients worldwide can receive our life-saving products and therapies. The investments at St. Wendel are a commitment to Germany as an important manufacturing base for us and proof of the dedication of our employees. Their efforts over the past years have made our successful growth possible."

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."

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."

Fresenius Kabi, a business segment of health care group Fresenius, continues its growth strategy in intravenously administered drugs (i.v. drugs). The company today announced the acquisition of 73.3 % of the share capital of the Indian company Dabur Pharma Ltd. for a price of INR 8,782 million (€ 139 million) or INR 76.50 per share in cash. In accordance with Indian regulations, Fresenius Kabi also announced a public offer to acquire up to a further 20 % shareholding for a price of INR 76.50 per share in cash. Fresenius Kabi has entered into an agreement with a third party to secure the participation of 2.4 % of Dabur Pharma's share capital in the public offer.

Dabur Pharma, headquartered in New Delhi, is one of the leading suppliers of generic drugs and active pharmaceutical ingredients (API) to treat cancer. The company holds a substantial number of drug registrations in Asia, Europe and the US. Dabur Pharma is also one of the few manufacturers worldwide to hold international registrations for all steps within the manufacturing process of cytostatic agents. The company operates two production facilities in India and one in Great Britain as well as a research and development center equipped in accordance with European and US standards near New Delhi.

The acquisition significantly expands Fresenus Kabi's i.v. drug portfolio and secures its supply of high quality APIs for cytostatics. With the acquisition of Dabur Pharma, Fresenius Kabi will also broaden its offering of patient-specific oncology therapies. In future, Dabur Pharma will supply Fresenius Kabi's compounding centres in Europe, Asia-Pacific and Latin America where patient-specific formulations of i.v. drugs and parenteral nutrition are being prepared for cancer patients.

Dabur Pharma is listed on the Bombay Stock Exchange and on the National Stock Exchange of India. The company achieved sales of more than € 41 million with generic oncology drugs and APIs in fiscal year 2006/2007 (April 1, 2006 to March 31, 2007) and employs about 960 people. Dabur Pharma pursues an international growth strategy and will benefit from Fresenius Kabi's international sales and marketing organization going forward. In addition, Dabur Pharma will continue to be focused on expanding its research and development.

The acquisition will be entirely debt-financed from funds that have already been procured. The transaction is expected to be accretive to Fresenius Group's Cash EPS in 2 - 3 years.

Closing of the transaction is subject to completion of the public offer process in line with local regulations as well as relevant approvals required under Indian law. This is expected to occur at the beginning of Q3 2008.


Conference Call
A conference call to inform about the acquisition will be held on April 21, 2008 at 4.00 p.m. CEDT. You are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com / Investor Relations / Presentations. A replay of the call will be available on our website shortly after the call.

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.

• Sales € 2.8 billion, +1 % at actual rates, +8 % in constant currency
• EBIT € 377 million, -1 % at actual rates, +7 % in constant currency
• Net income € 100 million, +8 % at actual rates, +13 % in constant currency

• Excellent growth in constant currency
• Currency impact based on translational effects
• Significant progress in generic I.V. drug strategy
• All business segments fully on track - Guidance for 2008 confirmed

Outlook for 2008 confirmed
Based on the Group's strong first quarter financial results Fresenius fully confirms its positive outlook for 2008: Group sales are expected to grow by 8 to 10 % in constant currency. Net income is expected to increase by 10 to 15 % in constant currency. All business segments are expected to contribute to this growth.


Sales growth of 8 % in constant currency
Group sales increased by 8 % in constant currency and by 1 % at actual rates to € 2,798 million (Q1 2007: € 2,767 million). Organic sales growth was 5 %. Acquisitions contributed a further 4 %. Divestitures reduced sales growth by 1 %. Currency translation had a negative impact of 7 %. This is mainly attributable to the average US dollar/Euro rate depreciating 14 % from Q1 2007.

Sales growth in the business segments was as follows:

In Europe sales grew by 13 % in constant currency with organic sales growth contributing 6 %. In North America sales grew by 1 % in constant currency. Organic growth was 2 %. Strong growth rates were achieved in the emerging markets with organic growth of 11 % in Asia-Pacific and 16 % in Latin America.

Excellent net income growth
Group EBITDA increased by 8 % in constant currency and by 1 % at actual rates to € 483 million (Q1 2007: € 479 million). Group operating income (EBIT) grew by 7 % in constant currency and decreased by 1 % at actual rates to € 377 million (Q1 2007: € 380 million). The Group's EBIT margin was 13.5 % (Q1 2007: 13.7 %).

Group net interest decreased to € -84 million (Q1 2007: € -95 million). This is mainly attributable to lower average interest rates at Fresenius Medical Care and currency translation effects.

The Group tax rate was 35.2 % (Q1 2007: 36.1 %).

Minority interest increased slightly to € 90 million (Q1 2007: € 89 million), of which 92 % was attributable to the minority interest in Fresenius Medical Care.

Group net income grew by 13 % in constant currency and by 8 % at actual rates to € 100 million (Q1 2007: € 93 million). Earnings per ordinary share and per preference share were € 0.64 (Q1 2007: ordinary share € 0.60, preference share € 0.60). This represents an increase of 7 % for both share classes.

Substantial investments in growth
Fresenius Group spent € 155 million for property, plant and equipment and intangible assets (Q1 2007: € 140 million). Acquisition spending was € 215 million (Q1 2007: € 155 million).

Sustainable cash flow development
Operating cash flow was € 278 million (Q1 2007: € 287 million). The cash flow margin was 9.9 % (Q1 2007: 10.4 %). Given increased net capital expenditure of € 162 million (Q1 2007: € 132 million), cash flow before acquisitions and dividends was € 116 million (Q1 2007: € 155 million). Free cash flow after net acquisitions (€ 158 million) and dividends (€ 5 million) was € -47 million (Q1 2007: € 88 million).

Solid balance sheet
Fresenius Group's total assets increased by 3 % in constant currency and decreased by 1 % at actual rates to € 15,149 million (December 31, 2007: € 15,324 million). Current assets increased by 4 % in constant currency and by 1 % at actual rates to € 4,319 million (December 31, 2007: € 4,291 million). Non-current assets were € 10,830 million (December 31, 2007: € 11,033 million).

Shareholders' equity including minority interest increased by 3 % in constant currency and decreased by 1 % at actual rates to € 5,988 million (December 31, 2007: € 6,059 million). The equity ratio (including minority interest) was 39.5 % (December 31, 2007: 39.5 %).

Group debt decreased by 2 % at actual rates to € 5,598 million (December 31, 2007: € 5,699 million). In constant currency, Group debt increased by 2 %. As of March 31, 2008, the net debt/EBITDA ratio was 2.6 (December 31, 2007: 2.6).

Number of employees increased
As of March 31, 2008, Fresenius increased the number of its employees by 2 % to 116,203 (December 31, 2007: 114,181). The growth was mainly attributable to Fresenius Kabi und Fresenius Medical Care.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immunosuppressive agent used to prevent and treat graft rejection following organ transplantation.

Studies with the antibodies Removab® and Rexomun® in various indications are ongoing in Europe and the US.

Fresenius Biotech's EBIT was € -9 million (Q1 2007: € -11 million). For 2008, Fresenius Biotech expects an EBIT of approximately € -50 million.



The Business Segments


Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of March 31, 2008, Fresenius Medical Care was treating 177,059 patients in 2,297 dialysis clinics.

Strong start into the year - in line with expectations
Outlook 2008 fully confirmed

Fresenius Medical Care achieved sales growth of 8 % to US$ 2,512 million (Q1 2007: US$ 2,321 million). Organic growth was 5 %. Currency translation effects had a positive impact of 4 %. Sales in dialysis care increased by 5 % to US$ 1,844 million (Q1 2007: US$ 1,760 million). In dialysis products, sales grew by 19 % to US$ 667 million (Q1 2007: US$ 560 million).

In North America sales increased by 2 % to US$ 1,668 million (Q1 2007: US$ 1,637 million). Dialysis services revenue increased by 1 % (3 % adjusted for the divestiture of the perfusion business in spring 2007) to US$ 1,495 million. Average revenue per treatment in the US was US$ 326 in the first quarter (Q4 2007: US$ 325), based on an increase in underlying reimbursement rates and an increase in EPO utilization. Sales outside North America ("International" segment) grew by 23 % (10 % in constant currency) to US$ 844 million (Q1 2007: US$ 684 million). Strong sales growth in constant currency was achieved in Europe (+11 %) and Latin America (+14 %).

EBIT rose by 7 % to US$ 389 million (Q1 2007: US$ 365 million) resulting in an EBIT margin of 15.5 % (Q1 2007: 15.7 %). This reflects the increased expenditures for corporate research and development activities and the expansion in the International dialysis services business. The EBIT margin in North America increased by 60 basis points to 16.4 %, supported by improved underlying reimbursement rates, dialysis services cost containment and a continued strong performance of renal products and PhosLo. In the International segment, the EBIT 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 income increased by 16 % to US$ 186 million (Q1 2007: US$ 160 million).

For 2008, Fresenius Medical Care fully confirms its outlook and expects to achieve revenue of more than US$ 10.4 billion, an increase of more than 7 %. Net income is expected to be between US$ 805 million and US$ 825 million, an increase of 12 % to 15 %.

For further information, please see Fresenius Medical Care's press release at www.fmc-ag.com.  


Fresenius Kabi

Fresenius Kabi offers infusion therapies and clinical nutrition for seriously and chronically ill patients in the hospital and out-patient environments. The company is also a leading provider of transfusion technology products.

Excellent sales growth of 15 % in constant currency
Outlook 2008 fully confirmed

Fresenius Kabi increased sales by 15 % in constant currency and by 13 % at actual rates to € 545 million (Q1 2007: € 483 million). Organic growth was excellent at 8 %. Net acquisitions contributed a further 7 % to sales. Currency translation effects had a negative impact of 2 %. This was mainly due to the depreciation of currencies in Great Britain, South Africa and China.

Organic sales growth in Europe (excluding Germany) was 6 %. In Germany organic sales growth was 1 %. In the Asia-Pacific region Fresenius Kabi again achieved significant organic sales growth of 28 %. Organic sales growth in Latin America was 10 % and in other regions 6 %.

EBIT grew by 13 % to € 87 million (Q1 2007: € 77 million). The EBIT margin was 16.0 % (Q1 2007: 15.9 %). Net income grew by 10 % to € 46 million (Q1 2007: € 42 million).
Fresenius Kabi fully confirms the outlook for 2008: The company targets sales growth in constant currency of 12 to 15 %. Organic growth is expected to contribute around 7 % to this target. Further, Fresenius Kabi forecasts an EBIT margin of around 16.5 %.

On April 20, 2008, Fresenius Kabi announced the acquisition of 73.3 % of the share capital of the Indian company Dabur Pharma Ltd. Dabur is a leading supplier of oncology generics. With this acquisition, Fresenius Kabi strengthens its position in I.V. drugs. Dabur achieved sales of more than € 41 million with generic oncology drugs and APIs in fiscal year 2006/2007 (April 1, 2006 to March 31, 2007).


Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. The HELIOS Kliniken Group owns 60 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats about 500,000 inpatients per year at its clinics and has a total of approximately 17,400 beds.

Positive financial performance of established clinics; Krefeld and Hüls with expected negative earnings contribution
Outlook 2008 fully confirmed

Fresenius Helios increased sales by 16 % to € 509 million (Q1 2007: € 439 million). Acquisitions contributed 11 % to overall sales growth. Organic growth was 4 %.

EBIT grew strongly by 19 % to € 38 million (Q1 2007: € 32 million) due to the very good financial performance of the established clinics. The first-time consolidation of HELIOS Klinikum Krefeld and the HELIOS Klinik Hüls had the expected negative impact on earnings. Nevertheless, the EBIT margin increased to 7.5 % (Q1 2007: 7.3 %). Net income improved by 36 % to € 15 million (Q1 2007: € 11 million).

Sales at the established clinics rose by 4 % to € 461 million. EBIT improved by 31 % to € 42 million. The EBIT margin was 9.1 % (Q1 2007: 7.3 %). The acquired clinics (consolidation < 1 year) achieved sales of € 48 million and an EBIT of € -4 million.

Fresenius Helios fully confirms its outlook for 2008: The company expects to achieve sales of more than € 2,050 million. EBIT is projected to increase to € 160 to 170 million, including the negative contribution of the clinics in Krefeld and Hüls.


Fresenius Vamed
Fresenius Vamed offers engineering and services for hospitals and other health care facilities.

Sales and earnings performance fully in line with expectations
Outlook 2008 fully confirmed

In the first quarter of 2008, Fresenius Vamed achieved sales growth of 1 % to € 74 million (Q1 2007: € 73 million). The project business generated sales of € 35 million (Q1 2007: € 37 million), sales in the service business were € 39 million (Q1 2007: € 36 million).

EBIT was € 4 million (Q1 2007: € 5 million). The EBIT margin was 5.4 % (Q1 2007: 6.8 %). Net income was € 4 million (Q1 2007: € 4 million).

Order intake in the project business grew strongly by 89 % to € 125 million (Q1 2007: € 66 million). This was driven by obtaining the order for the planning and construction of the Tauern Spa World in Kaprun/Austria of about € 80 million. Fresenius Vamed will be also responsible for the operational management of Tauern Spa World following the completion of the project. Order backlog as of March 31, 2008 reached a new all-time high of € 595 million, an increase of 17 % (December 31, 2007: € 510 million).

Fresenius Vamed fully confirms its outlook for 2008 and expects to grow both sales and EBIT by 5 to 10 %.


Analyst Conference Call and Audio Webcast
As part of the publication of the results for the first quarter of 2008, a conference call will be held on April 30, 2008 at 2.00 p.m. CEDT (8.00 a.m. EDT). You are cordially invited to follow the conference call in a live broadcast over the Internet at www.fresenius.com / Investor Relations / Presentations. Following the call, a recording will be available.

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.

Moody's has raised the corporate credit rating of Fresenius SE from Ba2 to Ba1. The ratings of the Senior Notes issued by the company's wholly-owned subsidiary Fresenius Finance B.V. also improved. The € 100 million Senior Notes due 2009 with a coupon of 7.5 %, the € 500 million Senior Notes due 2013 with a coupon of 5.0 % and the € 500 million Senior Notes due 2016 with a coupon of 5.5 % have been upgraded to Ba1 as well.

Moody's has also upgraded the corporate credit rating of Fresenius Medical Care AG & Co. KGaA from Ba2 to Ba1 and has raised the ratings of its debt.

A stable outlook has been assigned to all ratings.

Moody's has based the upgrade on the continuous improvements in the operating performance of both companies, evidenced by increased levels of profitability and cash flow generation driving a reduction of financial leverage.

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."