Following the Company's record financial results in 2007, Fresenius continues to expect strong sales and earnings growth in 2008. At the Annual General Meeting in Frankfurt Fresenius' Chairman of the Management Board Dr. Ulf M. Schneider confirmed the positive outlook for the full year 2008. Fresenius expects Group sales to increase by 8 to 10% in constant currency. Net income is expected to increase by 10 to 15% in constant currency. "Our growth prospects and strategic opportunities are excellent. The strong demand for high-quality healthcare drives sustainable organic growth. Selective acquisitions will further support our international business expansion. We are well positioned to take advantage of the opportunities in the fast-growing healthcare market," Schneider said.

During the Annual General Meeting, Fresenius shareholders approved the 15th consecutive dividend increase with a majority of more than 99%. Holders of ordinary shares will receive € 0.66 per share (2006: € 0.57) and holders of preference shares will receive € 0.67 (2006: € 0.58). This is an increase of about 15%. The total dividend distribution is € 103.2 million (2006: € 88.8 million).

Shareholders also elected a new supervisory board. Strategy Consultant Prof. Dr. h.c. Roland Berger and Klaus-Peter Müller, Chairman of the Supervisory Board of Commerzbank AG, will join the twelve-member board.


89.72 percent of the ordinary share capital and 59.17 percent of the preference share capital was represented at Fresenius SE's Annual General Meeting. A broad majority of more than 99 percent approved the actions of the Management and Supervisory Boards in 2007.

The path from a brilliant idea to a market-ready product is often long and arduous. Fresenius wants to help inventors along this path to support the spread of innovative concepts from all areas of medicine. The health care group is now announcing the 10th Fresenius Inventors' Fair. Creative types can present their ideas from November 19 to 21, 2008 as part of MEDICA, the world's largest medical trade fair in Dusseldorf. The Inventors' Fair offers an international forum for innovators to find professional partners from the private sector as well as potential investors for the further development and marketing of their ideas. On the first day of the trade fair, the three best inventions are awarded the Fresenius Inventors' Prize, worth 10,000 Euro in total. Applications are currently being accepted.

There are plenty of new developments in diagnostics and therapies as well as medical devices, care and rehabilitation. But for the most possible patients to benefit from these innovations, inventors often need a healthy dose of perseverance and additional expertise. The Fresenius Inventors' Fair offers innovators an opportunity to present their concepts to experts and the media, and to secure specialist and financial support from interested companies. This increases the chance that their idea could enter mass production and benefit from professional marketing.

An independent jury of medical and business specialists will select the three best innovations. Emphasis is placed on the potential benefits and novelty of an idea. "Feasibility is also a key trait of winning innovations," explains Martin Hepper, doctor and member of the 2006 Inventors' Prize jury. One such successful entry came from Orthopedic doctor Michael Arnold: he developed two orthopedic surgical instruments that allow a relatively gentle removal of worn prostheses, regardless of the original model or manufacturer.

Doctors, natural scientists, engineers as well as hospital and care professionals may now submit their ideas. Fresenius will provide select applicants with exhibition space and stands free of charge at the Inventors' Fair. The health care group has again invested in the professional design of the stands. This should allow exhibitors to showcase their innovations while stimulating interesting discussions with specialists and media representatives. Twenty exhibitors took part in the 2006 Inventors' Fair and numerous specialists from a variety of medical specialists entered the competition.

The deadline for applications is October 2, 2008. The Inventors' Fair will be in Hall 8b during MEDICA. The trade fair in Dusseldorf runs from November 19 to 21, 2008 and is open from 10 a.m. to 6:30 p.m. Additional information on the Inventors' Fair may be found at http://www.fresenius-erfindermesse.de/, and on MEDICA at http://www.medica.de. Contact: Fresenius SE, codeword: "Inventors' Fair", 61346 Bad Homburg, Germany, Fax: 0049-61 72-6 08 22 94, E-Mail: daniela.hegemann@fresenius.com.

Fresenius Kabi, a business segment of the health care group Fresenius, has signed definitive agreements to acquire APP Pharmaceuticals, Inc. APP is a leading manufacturer of intravenously administered generic drugs (I.V. generics) in North America. The company is listed on the NASDAQ Stock Market.

APP shareholders will receive a Cash Purchase Price of US$ 23.00 per share and a registered and tradeable Contingent Value Right (CVR) that could deliver up to US$ 6.00 per share, payable in 2011, if APP exceeds a cumulative adjusted EBITDA target for 2008 to 2010.

Based on the Cash Purchase Price, the transaction values the fully diluted equity capital of APP at approximately US$ 3.7 billion. Fresenius expects the acquisition to be neutral to EPS in the first year and clearly accretive from the second year onwards.

The acquisition is an important step in Fresenius Kabi's growth strategy. Through the acquisition of APP, Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics market. This North American platform provides further attractive growth opportunities for Fresenius Kabi's existing product portfolio.

APP focuses on I.V. generics for hospital use and distributes its products in the U.S. and Canada. The company employs around 1,400 people and has state-of-the-art production facilities in Illinois, New York and Puerto Rico as well as a subsidiary in Toronto, Canada.

With a portfolio of more than 100 products, comprising drugs for oncology, intensive care, anaesthesia, analgesia as well as drugs for the treatment of infections, APP holds an important position in the North American hospital market. The company has a strong drug registration pipeline covering all of its product segments.

In 2007, APP achieved sales of US$ 647 million and an adjusted EBITDA of US$ 253 million. The company's latest published guidance for 2008 forcasts sales in a range of US$ 730 million to US$ 750 million and an adjusted EBITDA in a range of US$ 285 million to US$ 300 million.

As part of this transaction APP will merge with a U.S. subsidiary of Fresenius Kabi. The definitive agreements include a written consent and voting agreement with Dr. Patrick Soon-Shiong, APP's founder and shareholder of over 80 % of the outstanding stock. The transaction has been approved by APP's Board of Directors.

Following the closing of the transaction, Patrick Soon-Shiong will serve as a non-executive director on the Board of Fresenius Kabi's U.S. Holding company. In this role, he will continue to contribute to the company's strategic development.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE commented: "APP is a fast-growing, highly profitable company and a strong management team that has an excellent market position in the U.S. Our firm very much shares APP's dedication to quality and medical excellence for the benefit of patients. The acquisition provides significant growth opportunities for Fresenius Kabi. With the APP platform, Fresenius Kabi will be able to market its product range in the U.S. Fresenius Kabi's international marketing and sales network will allow us to sell APP's products globally. We welcome APP employees to our team and very much look forward to serving the North American healthcare community."

Patrick Soon-Shiong said: "We are proud to have consistently provided injectable pharmaceutical products of the highest quality to patients in the acute care setting over the past decade. In Fresenius we have found a partner with the same commitment to quality and dedication to patient care. The combined company will allow for the rapid globalization of APP's portfolio with the same high levels of quality and patient commitment for which we have become known, while at the same time providing a more comprehensive and complementary offering of injectable pharmaceuticals, devices and delivery systems to customers worldwide."

It is planned to finance the acquisition with a mix of debt and equity, targeted to minimize the impact on Fresenius SE's credit ratings. However, given Fresenius' rapid progress in de-levering since 2006, the largest portion of the financing will consist of debt instruments.

Financing commitments for the total amount have been received from Deutsche Bank, Credit Suisse and JP Morgan. Details of the financing plan will be published in the coming weeks. Deutsche Bank acts as Global Coordinator of the financing and as sole M&A advisor to Fresenius.

The transaction is subject to certain closing conditions, including regulatory approvals, and approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Fresenius anticipates closing the transaction at the end of 2008 or beginning of 2009.

Fresenius Medical Care AG & Co. KGaA, the world's largest provider of dialysis products and services, today announced that it signed exclusive license agreements for the intravenous (IV) Iron products Venofer® (iron sucrose) and Ferinject® (ferric carboxymaltose) to treat iron deficiency anemia experienced by dialysis patients. Venofer® is the leading IV Iron product worldwide.

Galenica Ltd., its subsidiary Vifor Pharma and Fresenius Medical Care are entering into a strategic joint venture for dialysis to market and distribute the two iron products Venofer® and Ferinject® in Europe, Middle East, Africa and Latin America. The agreement concerns all commercialization activities for these IV Iron products in the field of dialysis and is expected to become effective not later than January 1st, 2009.

Commercialization of these respective IV Iron products outside the field of dialysis will remain fully the responsibility of Vifor Pharma and its existing key partners.

The total market for IV Iron in Europe, Middle East, Africa and Latin America was greater than $120 million in 2007. After the first year of the agreement, Fresenius Medical Care expects yearly sales from both IV Iron products to be in excess of $50 million.
In North America, a second Agreement provides for an exclusive U.S. manufacturing and distribution sublicense for Venofer® with Luitpold Pharmaceuticals Inc (Luitpold). In addition, it includes a similar sublicense for the next generation of iron products for the U.S. and Canada known as Injectafer® (ferric carboxymaltose) injection, which is expected to enhance the treatment of anemia in the dialysis patient population through the application of innovative drug administration techniques. The transaction is subject to customary closing conditions including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Act. The closing of the transaction is anticipated in 2008.

Luitpold will continue to sell Venofer® for use in treating chronic kidney disease patients not yet on dialysis and in treating patients with acute renal failure in hospitals. Venofer® is currently the market leader in sales in the injectable iron market in the U.S. Currently, the total purchases of IV Iron in the U.S are approximately US$ 500 million. Venofer® has a U.S. market share of approximately 55%. Galenica Ltd., through its Vifor Pharma subsidiary, exclusively licenses the Venofer® and Injectafer® products to Luitpold and American Regent for the U.S. and Canada.

As part of the 10-year Agreement for North America, Luitpold will continue to contract manufacture the products for Fresenius Medical Care. Luitpold will continue to pay royalties to Vifor Pharma, based in St. Gallen, Switzerland, which supplies the active pharmaceutical ingredient to Luitpold.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are very pleased to have Galenica Ltd., Vifor Pharma, Luitpold Pharmaceuticals, Inc. and American Regent, Inc., as our partners dedicated to improving the treatment of iron deficiency anemia experienced by dialysis patients. It is an excellent opportunity for us to access a proven and effective IV Iron product portfolio. With these agreements we will also deploy our "Pharmatech" strategy, aimed to introduce new drug delivery systems to improve quality and safety of dialysis treatments."

Fresenius SE today successfully priced an issue of mandatory exchangeable bonds with an aggregate nominal amount of € 554.4 million. The bonds will be issued by Fresenius Finance (Jersey) Ltd. Upon redemption the bonds will be mandatorily exchangeable into ordinary shares of Fresenius Medical Care AG & Co. KGaA.

The bonds have a maturity of 3 years. Upon maturity, a maximum of 16.80 million and a minimum of 14.24 million shares will be deliverable, representing approximately 5.66 % and 4.80 %, respectively, of Fresenius Medical Care's total subscribed capital.

The bonds carry a coupon of 5 ⅝ % p.a. The minimum exchange price equals the reference share price of € 33.00 and the maximum exchange price has been set 18 % above the reference share price. This structure allows Fresenius SE to participate in a potential upside of Fresenius Medical Care shares up to the maximum exchange price of € 38.94.

Settlement of the bonds is expected on August 14, 2008. Settlement of the mandatory exchangeable bonds subscribed by Dr. Patrick Soon-Shiong, founder and majority shareholder of APP Pharmaceuticals is subject to the closing of Fresenius Kabi's acquisition of APP Pharmaceuticals. Fresenius intends to list the bonds in the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange. However, the issue is not conditional upon obtaining listing.

Credit Suisse, Deutsche Bank, Dresdner Kleinwort and JPMorgan acted as Joint Bookrunners for the offering.

Concurrent with the issuance of the bonds a bookbuilding for an accelerated secondary equity offering of Fresenius Medical Care shares has been carried out by Credit Suisse and Deutsche Bank, without a direct involvement of Fresenius SE. The concurrent equity offering is common market practice in order to coordinate potential selling interest in Fresenius Medical Care shares. The shares were placed at a price of € 33.00 per share.

Supplemental information to the Bond:
Issuer: Fresenius Finance (Jersey) Ltd
Shares: Fresenius Medical Care AG & Co. KGaA
ISIN: DE0005785802
WKN: 578580
Listed: Regulated Market / Prime Standard of the Frankfurt Stock Exchange; New York Stock Exchange (NYSE)

The Management Board of Fresenius SE resolved today, with the consent of the Supervisory Board, to issue mandatory exchangeable bonds with a nominal amount of up to € 600 million. The bonds will be issued by Fresenius Finance (Jersey) Ltd. Upon redemption the bonds will be mandatorily exchangeable into ordinary shares of Fresenius Medical Care AG & Co. KGaA.

The bonds will be offered in a private placement solely to institutional investors outside the United States, Canada, Australia and Japan. There will be no public offering of the bonds.

Fresenius Medical Care is the world's largest provider of dialysis products and services and Fresenius' largest business segment. Fresenius SE currently owns approximately 36 % of both the ordinary voting shares and of the total subscribed capital of Fresenius Medical Care. Fresenius SE continues to view Fresenius Medical Care as a core business segment within the Fresenius Group.

The net proceeds from the issuance will be used to contribute to the funding of the previously announced acquisition of APP Pharmaceuticals, Inc. The acquisition is an important step in the growth strategy of Fresenius Kabi, a business segment of Fresenius SE. Through the acquisition of APP Pharmaceuticals Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics market. This North American platform provides further attractive growth opportunities for Fresenius Kabi's existing product portfolio.

At the time of issuance, up to 17 million ordinary shares of Fresenius Medical Care are underlying the bonds. At redemption, even after delivery of the underlying Fresenius Medical Care shares, Fresenius SE will still hold more than 30 % of Fresenius Medical Care's voting stock.

The bonds have a maturity of 3 years and will be issued at 100 % of the principal amount. The coupon is expected to be in a range from 5 ⅛ % to 5 ⅝ % p.a. The minimum exchange price equals the reference share price and the maximum exchange price is expected to be set between 118 % and 122 % of the reference share price. This structure allows Fresenius SE to participate in a potential upside of Fresenius Medical Care shares.

The bonds' reference price corresponds to the placement price determined by a bookbuilding for an accelerated secondary equity offering of Fresenius Medical Care shares. This placement will be executed by Credit Suisse and Deutsche Bank concurrent with the issuance of the bonds, without direct involvement of Fresenius SE, however. In line with common market practice, the placement will coordinate potential selling interest in Fresenius Medical Care common shares resulting from the issuance of the bonds.

Settlement of the bonds is expected on August 14, 2008. Fresenius intends to list the bonds in the Open Market (Freiverkehr) segment of the Frankfurt Stock Exchange. However, the issue is not conditional upon obtaining listing.

Dr. Patrick Soon-Shiong, founder and majority shareholder of APP Pharmaceuticals, has committed to buy mandatory exchangeable bonds in the amount of € 100 million in this transaction. The mandatory exchangeable bonds subscribed by Dr. Soon-Shiong will have identical terms as the other bonds, with settlement subject to the closing of Fresenius Kabi's acquisition of APP Pharmaceuticals.

Credit Suisse, Deutsche Bank, Dresdner Kleinwort and JPMorgan are acting as Joint Bookrunners for the offering.

The issuance of the mandatory exchangeable bonds is the first component of the long-term financing of the acquisition of APP Pharmaceuticals. Within the next 12 months, Fresenius may complement it with a capital increase of up to € 300 million. Any residual financing requirement will consist of debt instruments.

Dr. Ulf Mark Schneider, Chairman of the Management Board of Fresenius SE commented: "Fresenius Medical Care will continue to be a core business of the Fresenius Group and a strong earnings contributor based on its excellent growth profile. With the mandatory exchangeable bonds we will participate in any increase of Fresenius Medical Care's value over the next three years. At the same time, we strengthen our business segment Fresenius Kabi with the acquisition of APP Pharmaceuticals and enhance the financial results of our Group. We do not anticipate a further reduction of our holdings in Fresenius Medical Care."

Supplemental information to the Bond:

Issuer: Fresenius Finance (Jersey) Ltd
Shares: Fresenius Medical Care AG & Co. KGaA
ISIN: DE0005785802
WKN: 578580
Listed: Regulated Market / Prime Standard of the Frankfurt Stock Exchange; New York Stock Exchange (NYSE)

Summary Second Quarter 2008 (preliminary):

Net revenue $ 2,665 million + 11%
Operating income (EBIT) $ 428 million + 9%
Net income $ 209 million + 17%

Summary First Half 2008 (preliminary):

Net revenue $ 5,177 million + 10%
Operating income (EBIT) $ 816 million + 8%
Net income $ 395 million + 17%

Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of dialysis products and services, today announced preliminary results for the second quarter and the first six months of 2008. The disclosure of the Company's preliminary results on an accelerated basis has been triggered as a result of the announcement by Fresenius SE today.

Second Quarter 2008
Based on preliminary data, the total revenue for the second quarter 2008 increased by 11% (7% at constant currency) to $2,665 million. Operating income rose by 9% to $428 million. This very good performance was based on an operating margin of 16.1% compared to 16.3% for the same quarter in 2007. Net income in the second quarter 2008 was $209 million, an increase of 17%.

First Six Months 2008
Net revenue was $5,177 million, up 10% from the first six months of 2007. Adjusted for currency, net revenue rose by 6% in this period. Operating income rose by 8% to $816 million, resulting in an operating margin of 15.8% after 16.0% in the same period in 2007. In the first six months of 2008, net income was $395 million, up 17% from the first six months of 2007.

The final figures for the first half of 2008 and the outlook for the full year will be provided on July 30, 2008, as originally scheduled.

Below, Fresenius provides an overview on the financial results of the first half of 2008:

Based on preliminary figures, Group sales increased 9 % in constant currency and by 2 % at actual rates to € 5,710 million. Group EBIT rose by 8 % in constant currency. At actual rates, EBIT was at previous year's level of € 780 million. Group net income grew by 13 % in constant currency and by 8 % at actual rates to € 211 million.

Below are the financial results by business segment, based on preliminary figures:

Fresenius Medical Care achieved sales growth of 10 % to US$ 5,177 million. EBIT rose 8 % to US$ 816 million. Net income grew by 17 % to US$ 395 million.

Fresenius Kabi achieved an excellent sales growth of 14 % to € 1,121 million. EBIT increased by 14 % to € 181 million. The EBIT margin was 16.1 % (H1 2007: 16.1 %).

Fresenius Helios achieved strong sales and EBIT growth. Sales increased by 17 % to € 1,040 million. EBIT grew by 22 % to € 83 million.

Fresenius Vamed achieved sales growth of 11 % to € 177 million. EBIT was € 9 million.
The final figures for the first half of 2008 and the outlook for the full year will be provided on July 30, 2008, as originally scheduled.

Key figures of the business segments (US GAAP, preliminary)

Summary Second Quarter 2008:

Summary First Half 2008:

Bad Homburg, Germany – Fresenius Medical Care AG & Co. KGaA ("the Company"), the world's largest provider of Dialysis Products and Services, today announced its results for the second quarter and first half of 2008.

Second Quarter 2008:

Revenue

Net revenue for the second quarter of 2008 increased by 11% to $2,665 million (7% at constant currency) compared to the second quarter of 2007. Organic revenue growth worldwide was 7%. Dialysis Services revenue grew by 7% to $1,924 million (5% at constant currency) in the second quarter of 2008. Dialysis Product revenue increased by 22% to $741 million (12% at constant currency) in the same period.

North America revenue increased by 3% to $1,715 million. Organic revenue growth was 4%. Dialysis Services revenue grew by 2% to $1,533 million. Excluding the effects of the divestiture of the perfusion business in spring 2007, Dialysis Services revenue increased by 3%. Average revenue per treatment for the U.S. clinics was unchanged at $327 in the second quarter of 2008 compared to $327 for the same quarter in 2007 and $326 for the first quarter of 2008. The sequential improvement in the revenue per treatment during the second quarter of 2008 compared to the first quarter of 2008 was due to an increase in EPO utilization. The Average Selling Price (ASP) for EPO in the second quarter of 2008 remained approximately 5% less than second quarter of 2007 pricing. Dialysis Product revenue increased by 13% to $182 million. This performance was led by strong sales among the whole product portfolio including the phosphate binding drug PhosLo®.

International revenue was $950 million, an increase of 28% (14% at constant currency) compared to the second quarter of 2007. Organic revenue growth in the International segment was 14%. Dialysis Services revenue reached $391 million, an increase of 32% (19% at constant currency). Dialysis Product revenue rose 25% to $559 million (11% at constant currency), led by strong dialyzer and dialysis machine sales.
 

Earnings

Operating income (EBIT) increased by 10% to $429 million compared to $391 million in the second quarter of 2007 resulting in an operating margin of 16.1% compared to 16.3% for the second quarter 2007. This margin decrease mainly reflected the increased expenditures for our research and development activities. The strong underlying business was supported by increased reimbursement rates, dialysis services cost containment and a continued strong performance of renal products including PhosLo®. This was partially offset by a reduction in reimbursement and a lower utilization of EPO as well as start-up of new clinics and increased costs for the anticoagulant drug Heparin due to suspension of production by the principal manufacturer.

Net interest expense for the second quarter of 2008 was $82 million compared to $92 million in the same quarter of 2007. This positive development was mainly attributable to lower average interest rates associated with changes in the financing structure due to the redemption of a portion of the Trust Preferred Securities.

Income tax expense was $129 million for the second quarter of 2008 compared to $113 million in the second quarter of 2007, reflecting effective tax rates of 37.2% and 38.0%, respectively.

Net income for the second quarter 2008 was $211 million, an increase of 18%.

Earnings per share (EPS) for the second quarter of 2008 rose 18% to $0.71 per ordinary share compared to $0.60 for the second quarter of 2007. Earnings per ordinary American Depository Share (ADS) are equivalent as one ADS represents one share as a result of the change in ratio of the Company's ordinary shares and preference shares to ADSs. The weighted average number of shares outstanding for the second quarter of 2008 was approximately 296.7 million shares compared to 295.4 million shares for the second quarter of 2007. The increase in shares outstanding is due to stock option exercises in 2007 and also in the first half of 2008.

Cash Flow

In the second quarter of 2008, the Company generated $209 million in cash from operations, representing 8% of revenue. The cash flow generation was impacted by increases in inventory and other working capital.

A total of $179 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $30 million compared to $95 million in the second quarter of 2007. A total of $58 million in cash was used for acquisitions, net of divestitures.

First Half of 2008:

Revenue and Earnings

Net revenue was $5,177 million, up 10% from the first half of 2007. At constant currency, net revenue rose 6%. Organic growth was 6% in the first six months of 2008.

Operating income (EBIT) increased by 8% to $818 million compared to $756 million in the first half of 2007, resulting in an operating margin of 15.8% compared to 16.0% for the first half of 2007. This development mainly reflected higher research and development expenses. Reduced reimbursement rates for EPO and lower utilization of EPO as well as start-up cost for new clinics were offset by increases in underlying reimbursement rates, cost containment and contributions from product sales.

Net interest expense for the first six months of 2008 was $165 million compared to $187 million in the same period of 2007. The reduction was mainly due to lower average interest rates associated with changes in our financing structure.

Income tax expense was $243 million in the first half of 2008 compared to $216 million in the same period in 2007, reflecting tax rates of 37.2% and 38.0%, respectively.

For the first half of 2008, net income was $397 million, up 17% from the first half of 2007.

In the first six months of 2008, Earnings per ordinary share rose 17% to $1.34. The weighted average number of shares outstanding during the first half of 2008 was approximately 296.6 million.

Cash flow

Cash from operations during the first six months of 2008 was $401 million compared to $508 million for the same period in 2007. Cash Flow generation was impacted by higher DSO and increased inventory partially offset by increased earnings.

A total of $332 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first six months of 2008 was $69 million compared to $271 million in same period in 2007. A total of $92 million in cash was used for acquisitions, net of divestitures.

Please refer to the attachments for a complete overview on the second quarter and first half 2008.

Patients – Clinics – Treatments
As of June 30, 2008, Fresenius Medical Care treated 179,340 patients worldwide, which represents a 4% increase compared to last year. North America provided dialysis treatments for 123,784 patients, an increase of 3%. Including 32 clinics managed by Fresenius Medical Care North America, the number of patients in North America was 125,559. The International segment served 55,556 patients, an increase of 8% over last year.

As of June 30, 2008, the Company operated a total of 2,318 clinics worldwide. This is comprised of 1,647 clinics in North America, an increase of 4%, and 671 clinics in the International segment, an increase of 7%.

Fresenius Medical Care delivered approximately 13.6 million dialysis treatments worldwide during the first six months of 2008. This represents an increase of 5% year over year. North America accounted for 9.39 million treatments, an increase of 3%, and the International segment delivered 4.22 million treatments, an increase of 8% over last year.

Employees
As of June 30, 2008, Fresenius Medical Care had 63,197 employees (full-time equivalents) worldwide compared to 61,406 employees at the end of 2007.

Debt/EBITDA Ratio
The ratio of debt to Earnings before Interest, Taxes and Amortization (EBITDA) decreased from 3.03 at the end of the second quarter of 2007 to 2.86 at the end of the second quarter 2008.

Credit Rating
In March 2008, Standard & Poor's assigned debt and recovery ratings for Fresenius Medical Care AG & Co. KGaA'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 from BB- to BB+. In July 2008, in connection with of Fresenius SE acquisition of APP, Standard & Poor's revised its outlook from positive to negative. At the same time, all ratings, including the BB long-term corporate ratings, were affirmed.

In May 2008, Moody's raised both the corporate and the Debt Instruments' Rating of Fresenius Medical Care AG & Co. KGaA. The corporate Credit Rating improved from Ba2 to Ba1. The Senior Secured Debt under the $4.6 billion Credit Agreement received a Baa3 Investment Grade Rating. The Rating for the Unsecured $500 million Senior Notes due 2017 was raised from Ba3 to Ba2. The Ratings for the Trust Preferred Securities IV ($225 million) and Trust Preferred Securities V (€300 million) were raised from B1 to Ba3. A stable outlook was assigned to all Ratings.

Outlook for 2008

For the full year of 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 to 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 each year.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented:
"We are pleased to report a strong second quarter and first half of the year 2008 in an overall challenging environment. All business segments and regions have contributed to our strong performance. This gives us the opportunity to confirm our guidance for the full year of 2008. In 2008, we have continued to make selective acquisitions, increase our research and development efforts and expand our production capacity. We are pleased with our new pharmaceutical partnership for I.V. Iron as part of our renal pharma initiative. These investments position us to continue to lead the industry in quality and efficiency and with the emerging pay for performance concepts in the service area, Fresenius Medical Care is well prepared for future growth."

Conference Call

Fresenius Medical Care will hold a conference call to discuss the results of the second quarter and the first half year of 2008 on Wednesday, July 30, 2008, at 3:30 pm CEDT / 9:30 am EDT. The Company invites journalists to view the live webcast of the conference call at the Company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the call.

• Sales: € 5.7 billion, +2 % at actual rates, +9 % in constant currency
• EBIT: € 781 million, +0 % at actual rates, +8 % in constant currency

• Net income: € 212 million, +9 % at actual rates, +14 % in constant currency
• Excellent sales and earnings growth in constant currency
• Strong financial results in all business segments with high organic sales growth
• All business segments fully on track to achieve full-year guidance

Compared to the preliminary figures announced on July 17, 2008, Group EBIT improved by € 1 million to € 781 million and net income by € 1 million to € 212 million.

Outlook for 2008 confirmed
Based on the Group's excellent financial results in the first half 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 9 % in constant currency
Group sales increased by 9 % in constant currency and by 2 % at actual rates to € 5,710 million (H1 2007: € 5,592 million). Organic sales growth was 6 %. 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 rate depreciating 15 % against the euro in the first half of 2008 compared to previous year's period.

Sales growth in the business segments was as follows:

In Europe sales grew by 15 % in constant currency with organic sales growth of 8 %. In North America constant currency and organic sales growth were each 3 %. Strong organic growth rates were achieved in the emerging markets reaching 14 % in Asia-Pacific and 16 % in Latin America.

Strong earnings growth
Group EBITDA increased by 10 % in constant currency and by 2 % at actual rates to € 998 million (H1 2007: € 977 million). Group operating income (EBIT) grew by 8 % in constant currency to € 781 million (H1 2007: € 780 million). At actual rates EBIT was on previous year's level. The Group's EBIT margin was 13.7 % (H1 2007: 13.9 %).

Group net interest improved to € -167 million (H1 2007: € -185 million) mainly due to lower average interest rates of Fresenius Medical Care's debt and currency translation effects.

The Group tax rate was 34.9 % (H1 2007: 36.0 %).

Minority interest increased slightly to € 188 million (H1 2007: € 186 million), of which 93 % was attributable to the minority interest in Fresenius Medical Care.

Group net income grew by 14 % in constant currency and by 9 % at actual rates to € 212 million (H1 2007: € 195 million). Earnings per ordinary share increased to € 1.36 and earnings per preference share increased to € 1.37 (H1 2007: ordinary share € 1.26, preference share € 1.27). This represents an increase of 8 % for both share classes.

Continued investments in growth
Fresenius Group spent € 332 million for property, plant and equipment and intangible assets (H1 2007: € 302 million). Acquisition spending was € 292 million (H1 2007: € 223 million).


Sustainable cash flow development
Operating cash flow decreased to € 481 million (H1 2007: € 553 million) due to the higher working capital requirements. The cash flow margin was 8.4 % (H1 2007: 9.9 %). Cash flow before acquisitions and dividends was € 149 million (H1 2007: € 258 million) mainly due to net capital expenditure increasing to € 332 million (H1 2007: € 295 million). Free cash flow after net acquisitions (€ 224 million) and dividends (€ 218 million) was € -293 million (H1 2007: € -94 million).


Solid balance sheet
Fresenius Group's total assets increased by 5 % in constant currency and by 1 % at actual rates to € 15,491 million (December 31, 2007: € 15,324 million). Current assets increased by 8 % in constant currency and by 5 % at actual rates to € 4,505 million (December 31, 2007: € 4,291 million). Non-current assets were € 10,986 million (December 31, 2007: € 11,033 million).

Shareholders' equity including minority interest increased by 4 % in constant currency to € 6,073 million (December 31, 2007: € 6,059 million). The equity ratio (including minority interest) was 39.2 % (December 31, 2007: 39.5 %).

Group debt increased by 2 % at actual rates to € 5,805 million (December 31, 2007: € 5,699 million). In constant currency, Group debt increased by 5 %. As of June 30, 2008, the net debt/EBITDA ratio was 2.7 (December 31, 2007: 2.6).


Number of employees increased
As of June 30, 2008, Fresenius increased the number of its employees by 3 % to 117,453 (December 31, 2007: 114,181). The growth was mainly attributable to Fresenius Kabi and 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.

Orphan Drug Designation was achieved in Switzerland for the antibody Removab in the indications malignant ascites, gastric cancer and ovarian cancer. The Swiss Agency for therapeutic products (Swiss Medic) grants the Orphan Drug Designation to medicinal products used for rare, life-threatening or chronic diseases that affect no more than five in every 10,000 people in Switzerland and for which no sufficient effective treatment exists.

The registration process for Removab in Europe in the indication malignant ascites is proceeding according to plan. Fresenius Biotech dispatched the marketing authorization application to the European Medicines Agency (EMEA) in December 2007.

Fresenius Biotech's EBIT was € -20 million (H1 2007: € -20 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 June 30, 2008, Fresenius Medical Care was treating 179,340 patients in 2,318 dialysis clinics.

• Strong growth in all regions
• Outlook 2008 fully confirmed

Fresenius Medical Care achieved sales growth of 10 % to US$ 5,177 million (H1 2007: US$ 4,725 million). Organic growth was 6 %. Currency translation effects had a positive impact of 4 %. Sales in dialysis care increased by 6 % to US$ 3,769 million (H1 2007: US$ 3,556 million). In dialysis products sales grew by 20 % to US$ 1,408 million (H1 2007: US$ 1,169 million).

In North America sales increased by 3 % to US$ 3,382 million (H1 2007: US$ 3,297 million). Dialysis services revenue increased by 2 % to US$ 3,028 million. Average revenue per treatment in the US was US$ 327 in the second quarter of 2008 (Q2 2007: US$ 327). In the first quarter of 2008, average revenue per treatment in the US was US$ 326. The sequential improvement in the revenue per treatment was due to an increase in EPO utilization. Sales outside North America ("International" segment) grew by 26 % (12 % in constant currency) to US$ 1,795 million (H1 2007: US$ 1,428 million). Strong sales growth in constant currency was achieved in Asia-Pacific (+11 %), Europe (+12 %) and Latin America (+16 %).

EBIT rose by 8 % to US$ 818 million (H1 2007: US$ 756 million) resulting in an EBIT margin of 15.8 % (H1 2007: 16.0 %). This development mainly reflected higher research and development expenses. Reduced reimbursement rates for EPO and lower utilization of EPO as well as start-up cost for new clinics were offset by increases in underlying reimbursement rates, cost containment and continued strong performance of renal products including PhosLo.

Net income increased by 17 % to US$ 397 million (H1 2007: US$ 339 million).

For 2008, Fresenius Medical Care confirms its outlook and expects to achieve revenue of more than US$ 10.4 billion, an increase of more than 7 %. Net income is projected 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 organic growth of 10 %
• Outlook 2008 fully confirmed

Fresenius Kabi increased sales by 14 % to € 1,121 million (H1 2007: € 986 million). Organic sales growth was 10 %. Net acquisitions contributed a further 7 % to sales. Currency translation effects had a negative impact of 3 %. This was mainly due to the depreciation of currencies in Great Britain, South Africa and China. Organic sales growth in Europe (excluding Germany) was 7 %. In Germany organic sales growth was 2 %. In the Asia-Pacific region Fresenius Kabi again achieved significant organic sales growth of 27 %. Organic sales growth in Latin America was 9 % and in other regions 11 %.

EBIT grew by 14 % to € 181 million (H1 2007: € 159 million). The EBIT margin was 16.1 % (H1 2007: 16.1 %). Net income grew by 11 % to € 97 million (H1 2007: € 87 million).
Fresenius Kabi fully confirms the outlook for 2008: The company targets sales growth in constant currency of 12 to 15 %. Further, Fresenius Kabi forecasts an EBIT margin of around 16.5 %.

On July 7, 2008, Fresenius SE announced that Fresenius Kabi has signed definitive agreements to acquire APP Pharmaceuticals, Inc. APP is a leading manufacturer of intravenously administered generic drugs (I.V. generics) in North America. The acquisition is an important step in Fresenius Kabi's growth strategy. Through the acquisition of APP, Fresenius Kabi enters the U.S. pharmaceuticals market and achieves a leading position in the global I.V. generics market. This North American platform provides further attractive growth opportunities for Fresenius Kabi's existing product portfolio.


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 17,500 beds.

• Excellent sales and earnings growth
• Outlook 2008 fully confirmed

Fresenius Helios increased sales by 17 % to € 1,040 million (H1 2007: € 890 million). Acquisitions contributed 11 % to overall sales growth. Organic growth was strong at 5 %*. This performance was driven by the significant growth in hospital admissions compared to the same period last year.

The integration of the HELIOS clinics Krefeld and Hüls made significant progress in the second quarter. The strong increase in hospital admissions of about 9 % in the first half of 2008 compared to the first half of 2007 reflects the operating progress achieved. The new Krefeld hospital construction plans were finalized in May 2008, setting the stage for an efficient state-of-the art facility.

EBIT grew strongly by 22 % to € 83 million (H1 2007: € 68 million) due to the very good financial performance of the established clinics. The EBIT margin increased to 8.0 % (H1 2007: 7.6 %). Net income improved by 42 % to € 37 million (H1 2007: € 26 million).

Sales at the established clinics rose by 5 %* to € 945 million. EBIT improved by 31 % to € 89 million. The EBIT margin was 9.4 % (H1 2007: 7.6 %). The acquired clinics (consolidation < 1 year) achieved sales of € 95 million and an EBIT of € -6 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 from the HELIOS clinics Krefeld and Hüls.

*growth rate on a like for like basis


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

• Strong sales growth of 11 %; order intake doubled
• Outlook 2008 fully confirmed

In the first half of 2008, Fresenius Vamed achieved sales growth of 11 % to € 177 million (H1 2007: € 160 million). Acquisitions contributed 4 % to sales growth whereas divestitures had a negative impact of 4 %. Sales in the project business rose by 14 % to € 99 million (H1 2007: € 87 million). Sales in the service business improved by 7 % to € 78 million (H1 2007: € 73 million). Organic sales growth was 11 %.

EBIT was € 9 million (H1 2007: € 9 million). The EBIT margin was 5.1 % (H1 2007: 5.6 %). Net income increased by 13 % to € 9 million (H1 2007: € 8 million).

Order intake in the project business doubled to € 170 million (H1 2007: € 84 million). In the second quarter of 2008, an order of approximately € 25 million contributed to this growth. The order consists of the extension of a hospital in Oberndorf near Salzburg, Austria. Furthermore, Fresenius Vamed received their first order from Sri Lanka with a volume of about € 8 million regarding the supply of medical technical equipment for 25 hospitals. Order backlog as of June 30, 2008 was € 573 million, an increase of 12 % (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 half and the second quarter of 2008, a conference call will be held on July 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.