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Sales: Euro 2.4 billion, + 34 % at actual rates,+ 27 % in constant currency
EBIT: Euro 291 million, + 37 % at actual rates , + 31 % in constant currency
Net income: Euro 65 million, + 41 % at actual rates, + 35 % in constant currency
All business segments above budget
Excellent business performance at Fresenius Medical Care
Record sales and earnings at Fresenius Kabi
Fresenius ProServe with good earnings development in all segments
Overproportional share of expected one-time expenses already included in the first quarter 2006

Group outlook for 2006 confirmed
Based on the strong financial results for the first quarter, Fresenius fully confirms its positive outlook for 2006 and expects an increase of about 30 % in Group sales to approximately Euro 10.5 billion.

Net income is projected to grow by more than 30 % in constant currency. The net income guidance already includes an amount of approximately Euro 30 million (after tax) associated with expected one-time expenses as well as with expenses related to the stock option accounting change.

Investments in property, plant and equipment and intangible assets are projected to increase to approximately Euro 550 to 600 million.

Strong organic sales growth
In the first quarter 2006, Group sales increased by 34 % to Euro 2,388 million (Q1 2005: Euro 1,787 million). Organic growth was excellent, contributing 9 % to revenue growth. Acquisitions contributed 18 %, in particular due to the first-time consolidation of HELIOS Kliniken in the income statement. Currency translation effects contributed by 7 % to revenue growth.

Remarkable sales growth of 9 % in constant currency was achieved in North America. In Europe, sales rose significantly due to the first-time consolidation of HELIOS Kliniken. Organic growth was 7 %. Additionally, excellent growth rates were achieved in the emerging markets, with constant-currency sales up 27 % in Asia-Pacific, 26 % in Latin America and 16 % in Africa.

Sales contribution of the three business segments:

Fresenius ProServe's increased sales contribution is the result of the first-time consolidation of HELIOS Kliniken.

Strong earnings growth
EBITDA increased by 33 % in actual rates or 27 % in constant currency to Euro 377 million (Q1 2005: Euro 284 million). Group EBIT rose 37 % at actual rates and 31 % in constant currency to Euro 291 million (Q1 2005: Euro 212 million). All business segments achieved an excellent EBIT growth. The Group EBIT margin improved to 12.2 % (Q1 2005: 11.9 %).

Group net interest was Euro -84 million (Q1 2005: -47 million). This includes one-time expenses of Euro 25 million associated with the refinancing of Group debt. The tax rate for the first quarter of 2006 was 36.7 % (Q1 2005: 39.4 %).

Minority interest was Euro 66 million (Q1 2005: Euro 54 million). 93 % was attributable to the minority interest of Fresenius Medical Care.
Group net income grew significantly by 41 % at actual rates and 35 % in constant currency to Euro 65 million (Q1 2005: Euro 46 million). This result includes one-time expenses of approximately Euro 13 million primarily for the refinancing of debt as well as for expenses related to the stock option accounting change.

Earnings per ordinary share rose to Euro 1.28 (Q1 2005: Euro 1.11) while earnings per preference share rose to Euro 1.29 (Q1 2005: Euro 1.12). This is an increase of 15 % for both share classes (9 % in constant currency). Primarily due to the capital increase in December 2005 the average number of shares grew to 50,785,222.

Investments
Due to the acquisition of Renal Care Group, Group investments in the first quarter of 2006 increased to Euro 3.39 billion (Q1 2005: Euro 229 million). Euro 3.29 million was spent on acquisitions (Q1 2005: Euro 181 million). Euro 100 million was spent for property, plant and equipment and intangible assets (Q1 2005: Euro 48 million).

Cash flow
Operating cash flow increased by 11 % to Euro 186 million (Q1 2005: Euro 168 million). Key drivers were the significant improvement in earnings whereas the increase in working capital due to business expansion had a negative effect. Cash flow before acquisitions and dividends was Euro 91 million (Q1 2005: Euro 126 million). The acquisition of Renal Care Group was financed through bank debt.

Solid balance sheet structure
Total assets increased by 35 % to Euro 15,687 million (December 31, 2005: Euro 11,594 million). In constant currency, total assets grew 37 %. The substantial increase in assets is mainly related to the Renal Care Group acquisition which was consolidated in the balance sheet for the first time as of March 31, 2006. Current assets increased 28 % to Euro 4,506 million (December 31, 2005: Euro 3,531 million). Non-current assets were Euro 11,181 million (Q1 2005: Euro 8,063 million), an increase of 39 %. This was primarily due to an increase in goodwill.

Group debt increased to Euro 6,657 million (December 31, 2005: Euro 3,502 million) due to financing of the Renal Care Group acquisition.

Including Renal Care Group's EBITDA contribution the net debt/EBITDA ratio was 3.5 (December 31, 2005: 2.3).

Shareholders' equity including minority interest was Euro 5,546 million, 8 % above the figure of Euro 5,130 million as of December 31, 2005. This was due to the very good earnings development and the first-time consolidation of the Renal Care Group. As a result of the financing of the Renal Care Group acquisition the equity ratio (including minority interests) decreased to 35.4 % (December 31, 2005: 44.2 %).

Employee numbers exceeds 100,000
As of March 31, 2006, the Group had 100,934 employees worldwide (December 31, 2005: 91,971). The increase of 8,963 employees is principally due to the acquisition of the Renal Care Group.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies for the treatment of the immune system. 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.

Fresenius Biotech has successfully continued its clinical study program: In the field of the trifunctional antibody therapies for the treatment of cancer, Fresenius Biotech expects results from the ovarian cancer study in June 2006. The results from the malignant ascites study are expected at the end of this year.

A phase II study on malignant ascites has started in the US as planned. The U.S. Food and Drug Administration (FDA) granted Fast Track Status in the approval process for this indication. The Fast Track process provides a particularly close working relationship with the FDA in order to accelerate the development and approval of pharmaceuticals to treat potentially fatal diseases for which adequate therapies are not yet available.

A phase II study on breast cancer has started in March 2006. About 40 patients will be included in the trial. A phase II study for the treatment of gastric cancer with approximately 50 patients is scheduled to begin mid-2006.

For the full year 2006, Fresenius Biotech continues to expect an EBIT in the range of Euro -45 to -50 million, largely due to the expanded clinical study program.

The Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of products and services for patients with chronic kidney failure. As of March 31, 2006, Fresenius Medical Care (incl. Renal Care Group and after divestitures) was serving approximately 158,700 patients in 2,045 dialysis clinics.

* before one-time expenses and expenses related to the stock option accounting change

Excellent sales and earnings growth
Renal Care Group acquisition successfully completed at the end of March 2006
Outlook confirmed

Fresenius Medical Care achieved sales growth of 9 % to US$ 1,747 million (Q1 2005: US$ 1,609 million). In North America, Fresenius Medical Care increased sales by 10 % to US$ 1,194 million (Q1 2005: US$ 1,088 million). Sales outside North America ("International") grew by 6 % (12 % in constant currency) to US$ 553 million (Q1 2005: US$ 521 million). Sales in dialysis care increased by 9 % to US$ 1,273 million (Q1 2005: US$ 1,162 million). In dialysis products, Fresenius Medical Care achieved sales growth of 11 % in constant currency to US$ 474 million (Q1 2005: US$ 447 million).

Net income increased by 8 % to US$ 116 million (Q1 2005: US$ 107 million). Net income includes US$ 11 million of costs for the stock option accounting change and for one-time expenses related to the change of the company's legal form and the refinancing of Fresenius Medical Care debt. Excluding the above one-time expenses net income was up 18 % to US$ 127 million.

For the year 2006, Fresenius Medical Care confirms its outlook and expects to report revenue of more than US$ 8 billion. The company expects reported net income for 2006 to be between US$ 515 million and US$ 535 million. Guidance provided by the company does not take into effect any expected one-time items and the stock option accounting change - SFAS 123(R) in the fiscal year 2006. Fresenius Medical Care expects the after tax impact of the one-time items and SFAS 123(R) to be around US$ 60 million for the full year 2006.
For further information, please see Fresenius Medical Care's Investor News 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.

Strong organic sales growth in all regions
Excellent EBIT growth and further margin improvement achieved
Outlook for 2006 confirmed

Fresenius Kabi's sales increased by 17 % to Euro 466 million (Q1 2005: Euro 398 million). The company achieved strong organic growth of 9 %, partially supported by an increased number of working days compared to the first quarter of 2005. Acquisitions, primarily Clinico and the first-time consolidation of Pharmatel, contributed 5 % to sales. Currency translation added 3 % to growth.

Sales in Europe (excluding Germany) increased by 10 % in constant currency. Sales in Germany rose 6 %. Fresenius Kabi continued to grow exceptionally outside of Europe and achieved a constant-currency sales growth of 38 % in Asia-Pacific, 25 % in Latin America and 40 % in Africa.

Fresenius Kabi showed an excellent performance at the EBIT level, with an increase of 31 % to Euro 68 million (Q1 2005: Euro 52 million). The EBIT margin improved to 14.6 %, which is fully in line with the forecast for the full year. Net profit rose to Euro 26 million versus Euro 24 million in Q1 2005. This includes one-time expenses of Euro 8 million for the redemption of the 2003 Eurobond.

Fresenius Kabi confirms its outlook for the full year 2006: Sales are expected to increase about 10 % in constant currency due to strong organic sales growth and the first-time consolidation of Clinico and Pharmatel. Cost reductions in production combined with the projected sales growth will result in a significant earnings improvement in 2006. Fresenius Kabi's EBIT-margin is projected to increase to 14.5 to 15.0 %.

Fresenius ProServe
Fresenius ProServe is a leading German hospital operator with more than 50 hospitals. Moreover, the company offers engineering and services for hospitals and other health care facilities as well as for the pharmaceutical industry.

Sales and earnings get off to a good start in all segments
Business performance fully in line with forecast
Outlook for 2006 confirmed

In the first quarter of 2006, Fresenius ProServe achieved excellent financial results. Sales grew by 1 % to Euro 476 million (Q1 2005: incl. HELIOS Kliniken: Euro 469 million; as reported: Euro 171 million). Organic growth was 3 %.

EBIT increased by 11 % to Euro 30 million (Q1 2005: incl. HELIOS Kliniken: Euro 27 million, as reported: Euro 3 million;).

For greater transparency we are reporting sales and EBIT of the hospital operations business and the engineering & services business separately in future. The hospital operations business comprises the HELIOS Kliniken Group including Wittgensteiner Kliniken. The engineering & services business covers the activities of VAMED and Pharmaplan.

Sales in hospital operations (HELIOS Kliniken incl. Wittgensteiner Kliniken) were at previous year's level with Euro 383 million. Organic growth was 2 %. EBIT increased to Euro 27 million in Q1 2006. The EBIT margin improved to 7.0 % (Q1 2005 incl. HELIOS Kliniken: Euro 25 million, EBIT margin: 6.5 %).

In March 2006, HELIOS Kliniken has agreed to acquire a majority stake in HUMAINE Kliniken GmbH. HUMAINE operates six acute and post acute care hospitals with a total of 1,850 beds, thereof 1,530 in the acute care area. The group achieved sales of Euro 197 million and operating profit (EBIT) of Euro 14 million. The transaction is expected to be completed in mid-2006. The acquisition of HUMAINE will be accretive to Fresenius Group's earnings per share in the fiscal year 2006.

Sales in the engineering & services business (VAMED, Pharmaplan) increased by 8 % to Euro 93 million (Q1 2005: Euro 86 million). EBIT was up 67 % to Euro 5 million (Q1 2005: Euro 3 million). Order intake and order backlog continued to develop very positively: Order intake increased by 40 % to Euro 66 million in Q1 2006 (Q1 2005: Euro 47 million). Order backlog rose 2 % to Euro 367 million as of March 31, 2006 (Q1 2005: Euro 360 million).

For the full year 2006 Fresenius ProServe expects sales growth of 1 to 3 % before acquisitions, based on 2005 revenues including HELIOS of Euro 2,009 million. EBIT is forecast to rise to Euro 140 to150 million (2005 incl. HELIOS: Euro 125 million).

Conference Call
As part of the publication of our results of the first quarter 2006, a conference call will be held on May 3, 2006 at 2.00 p.m. CEDT (8.00 a.m. EDT). We invite all investors to follow the conference call over the Internet under Investor Relations / Presentations. Following the conference, a recording of the call will be available as video-on-demand.

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Fresenius Group in Figures
Consolidated statement of income (US GAAP) (unaudited)
(see PDF-File)

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Summary First Quarter 2006:

Net Revenue : $ 1,747 million, + 9%
Operating Income (EBIT): $ 244 million, + 11%
Operating Income (EBIT) excluding SFAS 123 (R) and one-time-costs: $ 247 million, + 12%
Net Income: $ 116 million, + 8%
Net Income excluding SFAS 123 (R) and one-time-costs: $ 127 million, + 18%

Fresenius Medical Care AG & Co. KGaA ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of Dialysis Products and Services, today announced the results for the first quarter 2006.

Revenue
Total revenue for the first quarter 2006 compared to the first quarter 2005 increased by 9% (10% at constant currency) to $1,747 million. Total organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 9% to $1,273 million (10% at constant currency) in the first quarter of 2006. Dialysis Product revenue increased by 6% to $474 million (11% at constant currency) in the same period.

North America revenue increased by 10% to $1,194 million. Dialysis Services revenue increased by 9% to $1,059 million. Average revenue per treatment for the U.S. clinics increased by 6% to $310 in the first quarter 2006 as compared to $293 for the same quarter in 2005. Dialysis Product revenue increased by 12% to $134 million led by strong sales of our 2008K hemodialysis machines and single-use dialyzer sales (Carepak™).

International revenue was $553 million, an increase of 6% (12% at constant currency) as compared to the first quarter of 2005. Dialysis Services revenue reached $213 million, an increase of 10% (15% at constant currency). Dialysis Product revenue increased by 4% to $340 million (10% at constant currency), led by strong machine (both the 4008 and 5008 series) and peritoneal dialysis sales.

Earnings
Operating income (EBIT) increased by 11% to $244 million. Operating income for the first quarter 2006 includes $3 million of costs related to the change of accounting principles for stock options (SFAS 123R) and one-time costs associated with the transformation of Fresenius Medical Care's legal form into a Kommanditgesellschaft auf Aktien (or KGaA, a partnership limited by shares) and related legal fees.

Excluding these costs, operating income for the first quarter 2006 increased on a comparable basis by 12% to $247 million. This very good performance resulted in an operating margin of 14.2% as compared to 13.7% for the same quarter in 2005.

Compared with the first quarter 2005, the operating margin in North America increased by 40 basis points to 13.8%. In our International segment, the operating margin increased by 150 basis points to 17.3%. Our strong operational performance in the International segment was positively impacted by improvements in key countries in Latin America and Asia Pacific and reimbursement increases in some dialysis service countries as well as very strong product sales.

Net interest expense increased by 33% to $56 million compared to the same quarter in 2005. The increase was due to write-off of one-time deferred financing costs related to the 2003 senior credit facility of $15 million.

Income tax expense was $71 million in the first quarter of 2006 as compared to $70 million in the first quarter 2005, reflecting effective tax rates of 37.9% and 39.2%, respectively.

Net income for the first quarter 2006 was $ 116 million, an increase of 8%. Excluding one-time costs, net income increased on a comparable basis by 18% to $127 million. Due to this very positive development, the net income margin increased to 7.3% of sales compared with 6.7% in the first quarter 2005.

Earnings per share (EPS) 1) for the first quarter of 2006 rose by 7% to $1.19 per ordinary share ($0.40 per American Depositary Share (ADS)), as compared to $1.11 ($0.37 per ADS) for the first quarter of 2005. The weighted average number of shares outstanding for the first quarter of 2006 was approximately 97.8 million shares, as compared to 96.3 million shares for the first quarter 2005. The increase in shares outstanding results from stock option exercises in 2005 and in the first quarter 2006.
1) Conversion of preference shares treated as capital contributions, subject to change.

Cash Flow
In the first quarter of 2006, the Company generated $162 million in net cash from operations, or 9.3% of revenue, compared to $138 million last year. The increase was mainly due to lower income tax payments in North America.

A total of $65 million (net of disposals) was spent for capital expenditures. Free Cash Flow before acquisitions was $97 million compared to $98 million in the first quarter of 2005. Days Sales Outstanding (DSO) in the first quarter of 2006 decreased by another 4 days to 78 days from the fourth quarter 2005. Compared with the first quarter of the previous year DSO were reduced by 6 days.

A total of $10 million in cash was used for acquisitions excluding the RCG acquisition. The Free Cash Flow after acquisitions excluding the RCG acquisition increased by 14% to $87 million compared to $76 million last year. Including the RCG acquisition, a total of $3,951 million in cash was used for acquisitions.

Patients - Clinics – Treatments
As of March 31, 2006, Fresenius Medical Care treated approximately 133,100 patients worldwide, which represents a 6% increase in patients compared with Q1 of last year. North America provided dialysis treatments for more than 89,800 patients (up 3%) and the International segment served approximately 43,300 patients (up 11%). Including Renal Care Group and after divestitures, the Company provides dialysis for approximately 158,700 patients worldwide, thereof 115,400 patients in North America.

As of March 31, 2006, the Company operated a total of 1,700 clinics worldwide, comprised of 1,165 clinics, an increase of 2% in North America, and 535 clinics, an increase of 9%, in the International segment. Including Renal Care Group and after divestitures, the Company operates a total of 2,045 clinics worldwide, thereof 1,510 clinics in North America.

Fresenius Medical Care delivered approximately 5.02 million dialysis treatments worldwide, which represents an increase of 6% year over year. North America accounted for 3.38 million treatments, an increase of 4%, and the International segment delivered 1.65 million treatments, an increase of 12% over last year. Including Renal Care Group and after divestitures, the Company would have delivered approximately 6.01 million dialysis treatments worldwide, thereof 4.36 million dialysis treatments in North America.

Renal Care Group Acquisition
On March 31, 2006, the Company announced the closing of the acquisition of Renal Care Group, Inc. effective March 31, 2006. The closing followed the completion of the Federal Trade Commission's (FTC) review of the acquisition and the issuance of a consent order to permit the closing of the acquisition. The result of operations of Renal Care Group will be consolidated from April 1, 2006 onwards.

On April 7, 2006 the Company completed the sale of 96 freestanding renal dialysis centers to a wholly-owned subsidiary of DSI Holding Company, Inc ("DSI"), including centers divested pursuant to a consent agreement with the FTC. An additional 9 centers located in Illinois will be sold upon receipt of Illinois regulatory approval, which is expected in the second quarter of 2006. Fresenius Medical Care will receive aggregate cash consideration of approximately $512 million for all of the centers being divested, subject to post-closing adjustments.

Outlook for 2006 Confirmed
For the year 2006, the Company confirms its outlook and expects to report revenue of more than $8 billion.

The Company expects reported net income for 2006 to be between $515 million and $535 million.

Guidance provided by the Company does not take into effect any expected one-time items and the change of accounting principle for stock options - SFAS 123(R) in the fiscal year 2006. The Company expects the after tax impact of the one-time items and SFAS 123(R) to be around $60 million for the full year 2006.

In addition in 2006, the Company expects capital expenditures to be approximately $450 million, and spending of approximately $100 million for acquisitions, excluding the RCG acquisition.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our results for the first quarter 2006 show an excellent start for the year. With our global base we continue to be well positioned for the continuing success of our business. We clearly confirm our previous forecast for the full year 2006. We are pleased that all regions and business segments grew at or above market. North America and Europe, which represent over ninety percent of our business, continued their strong growth momentum in both the products and services segments. It is particularly gratifying that we were able to keep our strong focus on operating performance while we completed the transformation, the preference share conversion and the RCG acquisition in the first quarter. Going forward, we will emphasize the integration of RCG, the further growth of our net income and the reduction of our leverage ratio."

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Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 2,045 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 158,700 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.
For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

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Shareholders of Fresenius Medical Care today approved the ninth consecutive dividend increase at the Annual General Meeting in Frankfurt, Germany. Ordinary shareholders will receive €1.23 per share (2004: €1.12) and preference shareholders will receive €1.29 (2004: €1.18). Shareholders discharged Management and Supervisory Board with a large majority of more than 90%.

In addition, shareholders of Fresenius Medical Care elected the Supervisory Board: Dr. Gerd Krick, Dr. Dieter Schenk, Prof. Dr. Bernd Fahrholz, Walter L. Weisman and John Gerhard Kringel will continue to serve as Supervisory Board members. William P. Johnston, former Chairman of the Board of Directors of Renal Care Group, which was recently acquired by Fresenius Medical Care, joins the Supervisory Board as a new member.

The shareholders also approved a new stock option program which is directly linked to the company's success. Accordingly managerial staff members will receive up to five million options for bearer ordinary shares over the next five years, which are exercisable after a period of three years, if the Earnings Per Share (EPS) hurdle has been achieved. If this hurdle is achieved in only one or two years, the options are reduced accordingly. If the hurdle is entirely not achieved, the options are cancelled.

The new stock option program 2006 ensures that managerial staff members participate in the financial risks and opportunities of the Company and offers them an internationally competitive remuneration system also in the future. Representatives from the two German shareholders' associations, Schutzgemeinschaft der Kleinaktionäre and Schutzvereinigung für Wertpapierbesitz, supported the new Stock Option Program.

In addition, the shareholders approved several formalities and adoptions to the Articles of Association of Fresenius Medical Care AG & Co. KGaA.

About 60% of the ordinary share capital was represented at the Annual General Meeting.

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The mortality rate among patients with kidney disease is significantly lower with hemodiafiltration than with conventional hemodialysis. This is the result of a new study conducted by specialists at the University Hospital in Lapeyronie in Montpellier and led by French nephrology professor Bernard Canaud. The study showed that kidney patients treated with high-efficiency hemodiafiltration (HDF) therapy had a 35 percent better chance of survival than those that received traditional hemodialysis. The three-year Dialysis Outcomes and Practice Patterns Study (DOPPS) from five European countries involved 2,165 patients who received treatment an average of three times per week.

This is the first time a prospective observational study, adjusted to exclude influencing factors such as age and multiple illnesses, proved that HDF treatment has reduced mortality rates among patients with chronic kidney disease. A retrospective study published last year and using existing data had already provided the first indications of the positive effects of HDF. Specialists attribute the improved survival rates with the HDF therapy to a more efficient removal of harmful substances from the blood, less side-effects and a lower overall risk of cardiovascular illness. Cardiovascular complications remain the most common cause of mortality among dialysis patients and are responsible for almost every second death.

Dr. Emanuele Gatti, Fresenius Medical Care Management Board Member responsible for Europe, Latin America, the Middle East and Africa: "The positive results of the new study support our efforts to provide innovative treatment methods such as hemodiafiltration to allow patients with chronic kidney failure to look confidently towards the future. We expect the demand for online-HDF to continue growing."

For the first time, Fresenius Medical Care offers online-HDF as standard treatment as part of its new 5008 Therapy System. Until now, increased costs made online-HDF viable for only a few patients. With the 5008, operating costs have been significantly reduced through simpler user-interfaces, lower maintenance effort and as much as 30 percent reduction in electricity and water usage. Now, more dialysis patients can be provided with online-HDF. Fresenius Medical Care was presented with the German Business Innovation Award at the start of the year for the 5008 Therapy System.

Online-hemodiafiltration combines two different methods of removal of toxins: diffusion-based hemodialysis, and hemofiltration whereby blood is filtered through a membrane. HDF is particularly efficient and gentle when filtering toxins and removing water from the patient's blood. The 5008 Therapy System automatically replaces the fluid removed with an appropriate quantity of ultrapure electrolyte solution; the solution is prepared by the dialysis machine "online", eliminating the need for additional infusion solutions in bags.

The study has been published in the online-edition of "Kidney international" at: www.nature.com/ki/journal/vaop/ncurrent/full/5000447a.html.

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Fresenius Medical Care AG & Co. KGaA announced today that its wholly-owned subsidiary, Renal Care Group, Inc., has received a subpoena from the United States Attorney's Office for the Southern District of New York requesting documents relating to grants of stock options by Renal Care Group during the period from when Renal Care Group was formed in 1996 through the present. Fresenius Medical Care completed the acquisition of Renal Care Group on March 31, 2006.

Based on Fresenius Medical Care's confidence in the management of Renal Care Group, the Company believes that Renal Care Group's option program was appropriately administered. On behalf of Renal Care Group, Fresenius Medical Care will cooperate with the U.S. Attorney's office to resolve this matter expeditiously.

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Fresenius Biotech today announced encouraging results from a Phase IIa study with the trifunctional antibody removab® (INN: catumaxomab) in the treatment of ovarian cancer patients. This European multi-center study was designed to assess the relative safety and efficacy of two different dose regimens, and included 44 patients with advanced ovarian cancer that were resistant to platinum and paclitaxel standard chemotherapy following surgery or had relapsed within six months of treatment. Both dose regimens were associated with the same mild to moderate toxicity profile, and the high dose treatment group showed a better tumor response. Currently, there are no other generally accepted treatment options for this patient population.

Patients were given four doses of removab® via intraperitoneal administration over a period of ten days. The primary objective of the study was to determine whether application of a constant low dose (10-10-10-10 µg) or an escalated dose (10-20-50-100 µg) yielded a difference in either tolerability or response rate.

The study yielded two key findings:

The antibody was well tolerated even at higher doses. Only moderate and temporary side effects were observed at both dose regimens, including fever, nausea and vomiting, and local skin reaction.
The higher dose regimen yielded a clearly better anti-tumor efficacy, with one complete response (out of 22 patients) in this group. Four instances of stable disease were observed in the higher dose regimen. Two instances of stable disease were observed with the constant low dose regimen.

Based on the encouraging results of this Phase Ila study, Fresenius Biotech is planning to start a European Phase II study in the second half of 2006 to investigate the efficacy of removab® in the treatment of ovarian cancer. In this study the additional benefit of removab® in conjunction with surgery and standard chemotherapy will be investigated. As of today, the study will be designed to treat about 40 patients in earlier stages of the disease. These patients will receive four postoperative doses, as in the Phase IIa study, and an additional dose immediately after the tumor mass has been resected (R0 and RI resection).

Background information

Trifunctional antibodies: The trifunctional antibodies developed by Fresenius Biotech's partner TRION Pharma are proteins that join cancer cells with two different defensive cells from the body's own immune system: T-Cells and accessory cells. This initiates an especially efficient destruction of tumor cells.

Study phases: The goal of a Phase I study is to determine potential dosages and side effects while a Phase II investigates the effectiveness and safety of a medication using a low number of patients. A Phase IIa study is used to compare the safety and efficacy of various dosages. A Phase III study evaluates the effectiveness of a drug using a larger number of patients. The drug is also compared with standard treatments and a risk analysis is performed.

Ovarian cancer affects an average of 12.8 of 100,000 women and is the sixth most common cancer among women. In 2002, the World Health Organization registered more than 200,000 new cases worldwide and more than 120,000 patients died of the disease that year. Because there are no early warning signs for ovarian cancer, three-fourths of all cases are first diagnosed at an advanced stage. Despite improvements in chemotherapy with platinum, two-thirds of all patients fail to react to this treatment or relapse. This results in a relatively low survival rate with just 30 to 40 percent of ovarian cancer patients surviving the first five years.

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Fresenius Biotech is a company of the Fresenius Group, focused on the development and marketing of biopharmaceuticals in the fields of oncology, immunology and regenerative medicine. For more information visit the Company's website at www.fresenius-biotech.com.

Fresenius is a health care group with international operations, providing products and services for dialysis, hospital and the ambulatory medical care of patients. For 2006, the Company expects sales of approximately € 10.5 billion. On March 31, 2006 the Fresenius Group had 100,934 employees worldwide.

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Fresenius Medical Care has been recognized for its new 5008 therapy system with the "red dot award: product design". This therapy system is used for treating for patients with chronic kidney failure. Since 1955, the Design Zentrum Nordrhein Westfalen has been marking outstanding international product design with the award. This year, more than 2,000 products from companies in 41 countries took part in the competition. The jury praised the noticeable improvement in the level of the entries: "Even in product categories where design was typically more neglected, such as medicine, design has now become an important competitive factor," the jury noted in a statement.

Dr. Emanuele Gatti, Management Board Member of Fresenius Medical Care responsible for development: "We are very pleased about the ‘red dot award: product design'. With the 5008 therapy system, we have primarily improved treatment quality and efficiency but also placed an emphasis on design. The award proves that medical equipment fits perfectly with creative product design." This benefits treatment personnel in dialysis clinics since they can operate and monitor the 5008 therapy system centrally, simply and, above all, safely using a large touch-screen monitor with an intuitive menu. During the design of the dialysis machine, developers integrated the latest ergonomic knowledge. All elements of the therapy system were laid out according to the most ideal working positions and procedures. Blood lines are easier to install and remove on the machine and all components are readily accessible and easily replaced.

The "red dot award: product design" will be presented during a gala celebration at the opera house in Essen, Germany on June 26. Some 1,200 guests from culture, business and politics are expected. Following the ceremony, the products recognized with the award will be on-display during a special "Design on stage – winners red dot award: product design 2006" exhibition at the red dot design museum in Essen through July 23. The 5008 therapy system has already won the 26th German Business Innovation Award last January.

Dialysis machines such as the new 5008 therapy system count among the most important products for the treatment of patients with chronic kidney disease. The machines pump blood from a special access in the arm of a patient into the dialyzer where metabolic toxins and excess water are filtered from the blood with the help of a dialysis solution. The filtered blood is then infused back into the patient. The dialysis machine controls the circulation of blood outside the body and the composition of the dialysis solution. In addition, it introduces anti-coagulation drugs to prohibit clotting. This life-sustaining treatment is normally administered three times a week and lasts about four hours.

The 5008 differentiates itself from traditional dialysis systems by cost-effectively combing two different treatment procedures: diffusion-based hemodialysis and hemofiltration, where blood is filtered through a membrane. The increased amount of fluids filtered by the machine is countered automatically with the introduction of ultrapure electrolyte solution. This solution is produced by the dialysis machine itself – traditional machines would require extra solution in bags. The procedure is called online hemodiafiltration (Online-HDF) and is regarded by experts as the best-possible treatment type because of its many advantages for patients. Until now, an increase in costs limited Online-HDF to only a few patients. The new 5008 therapy system is able to significantly reduce operating costs through simpler operation, fewer maintenance requirements and an as-much-as 30% reduction in the amount of electricity and water needed. For the first time, this enables cost-effective access to Online-HDF treatment for a broader number of patients.

High resolution pictures and additional information on the new 5008 therapy system are available online at www.fresenius-ag.com/presskit. Further details on the red dot award: product design can be found on the Design Zentrum Web site at http://en.red-dot.org/77.html.

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The Design Zentrum Nordrhein Westfalen was originally founded in 1954 in Essen as an association called „Industrieform e.V." The association's aim was to "facilitating an appropriate design of the environment for the public at large". Today, The Design Zentrum Nordrhein Westfalen is a globally recognized qualification and communication centre for industry, politics and society. Since 1997, it has been based in the former boiler house of Zeche Zollverein, a mine complex included in the UNESCO World Cultural Heritage list. There, in the unique architecture of the red dot design museum - the mine building converted by Lord Foster of Thames Bank - the Design Zentrum presents the present and future of design.

For more information about the Design Zentrum visit its website at www.red-dot.de.

Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 2,045 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 158,700 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

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Fresenius Medical Care ("the Company"), the world's largest provider of Dialysis Products and Services, has received regulatory approval from Germany's Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte) for a new phosphate binding agent. The drug "OsvaRen" is expected to be introduced to the German market in the second half of 2006. The Company aims at quickly receiving accelerated approval for the new phosphate binding agent in other countries within the European Union using the mutual recognition process. The new phosphate binding agent should be introduced in all European Countries in 2007.

The newly approved product is a phosphate binding agent that is made from a combination of calcium acetate and magnesium carbonate. Excess phosphate consumed with food is normally removed by the kidneys in a process that can only partially be replaced by dialysis in patients with chronic kidney failure. Too much phosphate in the blood can result in mid-term damages to bones and blood vessels. The risk of such damages can be lowered by regularly taking in phosphate binders. The new compound from Fresenius Medical Care combines two substances known to support bone health while optimizing the levels of calcium.

With the approval of the new drug Fresenius Medical Care has made a further step to develop new business opportunities with new renal therapy options combining dialysis expertise in products and services with certain drugs commonly used in dialysis.
"The expansion of our business into the renal drug arena for the treatment of patients with chronic kidney failure is part of our horizontal diversification. By further strengthening our broad portfolio of dialysis-related products and therapies, we create the basics for sustainable and profitable growth of our Company. This is a very interesting step where we are now able to partially address such opportunities in the market place" said Dr. Emanuele Gatti, Fresenius Medical Care Management Board Member responsible for Europe, Latin America, the Middle East and Africa.

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Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of approximately 2,045 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 158,700 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. Fresenius Medical Care is listed on the Frankfurt Stock Exchange (FME, FME3) and the New York Stock Exchange (FMS, FMS-p).

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

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Summary Second Quarter 2006:

Net revenue: $2,165 million, +29%

Operating income (EBIT): $372 million, +56%
Operating income (EBIT) excluding SFAS 123(R) and one-time items: $340 million, +42%

Net income: $130 million, +12%
Net income excluding SFAS 123(R) and one-time items: $139 million, +19%

Fresenius Medical Care AG & Co. KGaA ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of Dialysis Products and Services, today announced the results for the second quarter and the first six months 2006.

Second Quarter 2006:
Please note, the result of operations of Renal Care Group (RCG) is consolidated from April 1, 2006 onwards.

Revenue
Total revenue for the second quarter 2006 compared to the second quarter 2005 increased by 29% (30% at constant currency) to $2,165 million. Total organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 38% to $1,652 million (38% at constant currency) in the second quarter of 2006. Dialysis Product revenue increased by 9% to $514 million (9% at constant currency) in the same period. Excluding Renal Care Group (RCG) and the divested dialysis clinics in conjunction with the acquisition of RCG, revenue for the second quarter 2006 grew by 9%.

North America revenue increased by 38% to $1,561 million. Dialysis Services revenue increased by 43% to $1,428 million. Average revenue per treatment for the U.S. clinics increased by 8% to $317 in the second quarter 2006 as compared to $294 for the same quarter in 2005. Dialysis Product revenue increased by 5% to $133 million led by strong sales of our 2008K hemodialysis machines and single-use dialyzer sales (Carepak™). Excluding RCG and the related divestitures, the dialysis product revenue increased by 10% versus last year.

International revenue was $604 million, an increase of 11% (11% at constant currency) as compared to the second quarter of 2005. Dialysis Services revenue reached $224 million, an increase of 12% (13% at constant currency). Dialysis Product revenue increased by 10% to $380 million (10% at constant currency), led by strong machine (both the 4008 and 5008 series) sales.

Earnings
Operating income (EBIT) increased by 56% to $372 million, including a $39 million gain from the divestiture of dialysis clinics in conjunction with the regulatory approval for the acquisition of RCG. In addition, operating income for the second quarter 2006 includes $3 million of costs related to the change of accounting principles for stock options (SFAS 123R) and $4 million of one-time costs associated with the restructuring of RCG and the transformation of Fresenius Medical Care's legal form and related legal fees.

Excluding these costs and the gain from the divestiture, operating income for the second quarter 2006 increased by 42% to $340 million resulting in an operating margin of 15.7%. For the second quarter 2005 the operating margin was 14.3%.

Compared with the second quarter 2005, the operating margin in North America increased by 180 basis points to 15.8% due to the consolidation of RCG, an increase in the revenue per treatment and strong demand for dialysis products. In the International segment, the operating margin increased by 120 basis points to 18.0%. The strong operational performance in the International segment was driven by strong product sales in all regions and positively impacted by improvements in key countries in Latin America and Asia-Pacific.

Net interest expense for the second quarter 2006 was $100 million compared to $43 million in the same quarter of 2005. This increase is absolutely in line with expectations and is purely the result of the debt financing for the RCG acquisition.

Income tax expense was $135 million in the second quarter of 2006 as compared to $79 million in the second quarter 2005, reflecting effective tax rates of 49.6% and 40.4%, respectively. The tax rate has been impacted in the second quarter by tax payments in connection with the divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.8%.

Net income for the second quarter 2006 was $130 million, an increase of 12%. Excluding one-time costs and SFAS 123(R), the net income increased on a comparable basis by 19% to $139 million.

Earnings per share (EPS) for the second quarter of 2006 rose by 10% to $1.32 per ordinary share ($0.44 per American Depositary Share (ADS)), as compared to $1.20 ($0.40 per ADS) for the second quarter of 2005. The weighted average number of shares outstanding for the second quarter of 2006 was approximately 98.0 million shares, as compared to 96.4 million shares for the second quarter 2005. The increase in shares outstanding results from stock option exercises in 2005 and in the first half of 2006.

Cash Flow
In the second quarter of 2006, the Company generated $165 million in cash from operations, compared to $130 million last year. Cash from operations in the second quarter includes $75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments, the underlying cash from operations in the second quarter 2006 was $240 million, or 11.1% of revenue. The strong cash flow generation was supported by reductions in Days Sales Outstanding (DSO) and increased earnings.

A total of $95 million was spent for capital expenditures, net of disposals. Free Cash Flow before acquisitions was $70 million compared to $72 million in the second quarter of 2005. Excluding tax payments related to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the second quarter 2006 was $145 million. A total of $24 million in cash was used for acquisitions excluding the RCG acquisition.

First Half 2006:

Earnings and Revenue
In the first half of 2006, net income was $246 million, up 10% from the first half of 2005. Excluding costs related to the change of accounting principles for stock options (SFAS 123R) and one-time items net income increased by 19% to $266 million.

Net revenue was $3,912 million, up 19% from the first half of 2005. Adjusted for currency, net revenue rose 20% in the first half of 2006. Excluding Renal Care Group and the divested clinics revenue for the first half of 2006 grew by 10%.

Operating income (EBIT) increased by 34% to $616 million. Operating income for the first half of 2006 includes $29 million of income as a result of the gain from the clinic divestitures, net of costs mainly related to the RCG restructuring and the change of accounting principles for stock options.

Excluding these costs, operating income for the first half of 2006 increased by 28% to $587 million. This performance resulted in an operating margin of 15.0% as compared to 14.0% for the first half of 2005.

Net interest expense for the first six months of 2006 was $156 million as a result of the write-off of deferred financing costs related to the 2003 senior credit facility of $15 million and one quarter worth of additional interest expense, both in conjunction with the financing of the RCG acquisition. Income tax expense was $206 million in the first half of 2006 as compared to $149 million in the same period in 2005, reflecting effective tax rates of 44.8% and 39.8%, respectively. The tax rate has been impacted by tax payments in connection with the gain on divestiture of dialysis clinics in the U.S. and the change of accounting principles for stock options (SFAS 123R). Excluding this impact, the tax rate was at 38.5%.

For the first half of 2006, earnings per ordinary share rose by 9% to $2.51 ($0.84 per ADS). The weighted average number of shares outstanding during the first half of 2006 was approximately 97.9 million.

Cash Flow
Cash from operations during the first half of 2006 was $327 million as compared to $268 million in the first half of 2005. Cash from operations in the first half of 2006 includes $75 million net tax payments related to the divestiture of clinics and the RCG acquisition. Excluding these tax payments the underlying cash from operations was $402 million in the first half of 2006. The increase compared to prior year was mainly due to strong collection of receivables, improvements in earnings and lower income tax payments for prior years.

A total of $160 million was used for capital expenditures, net of disposals. Free Cash Flow before acquisitions for the first half of 2006 was $167 million as compared to $171 million in the first half of 2005. Excluding tax payments due to the divestiture of clinics the underlying Free Cash Flow before acquisitions in the first half of 2006 was $242 million. A total of $35 million in cash was used for acquisitions other than the RCG acquisition in the first half of 2006.

For a complete overview of the second quarter and the first half of 2006, please refer to the appendix.

Patients - Clinics - Treatments
As of June 30, 2006, Fresenius Medical Care treated 161,675 patients worldwide, which represents a 26% increase in patients compared to the second quarter of last year. North America provided dialysis treatments for 117,830 patients (up 33%) and the International segment served 43,845 patients (up 11%).

As of June 30, 2006, the Company operated a total of 2,078 clinics worldwide, comprised of 1,540 clinics, an increase of 34% in North America, and 538 clinics, an increase of 8%, in the International segment.

Fresenius Medical Care delivered approximately 11.18 million dialysis treatments worldwide, which represents an increase of 16% year over year. North America accounted for 7.84 million treatments, an increase of 19%, and the International segment delivered 3.34 million treatments, an increase of 11% over last year.

Employees
As of June 30, 2006, Fresenius Medical Care employed 55,243 people (full-time equivalents) worldwide after 47,521 at the end of 2005. The increase of 7,722 employees is primarily due to the acquisition of Renal Care Group.

Renal Care Group Acquisition
As expected, Fresenius Medical Care completed the sale of additional 9 dialysis clinics in Illinois on June 30, 2006 after receiving the Illinois regulatory approval.

Outlook for 2006 Upgraded
Based on the strong performance in the first half of 2006, the Company upgrades its guidance for the full year 2006. After expecting to report a revenue of about $8.1 billion, the Company now expects a revenue for 2006 of about $8.3 billion.

The Company also upgrades its outlook for reported net income for 2006. After expecting a net income between $515 million and $535 million, the Company now expects to report a net income of at least $542 million, which represents an increase of at least 15% over the 2005 level.

In order to show the underlying performance of the Company, the guidance does not take into effect any expected one-time items and the change of accounting principle for stock options - SFAS 123(R) in the fiscal year 2006.

After previously assuming the after tax impact of one-time items and SFAS 123(R) to be about $60 million the Company now expects this impact to be about $40 million for the full year 2006.

In addition, the Company confirms its guidance on capital expenditures and acquisition spending to be approximately $550 million in 2006.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our second quarter and half year financial results were excellent and exceeded expectations. We continue to see earnings growth momentum which is based on the success of our global business strategies and the dedication of our employees. In addition, Renal Care Group is continuing to perform very well and our integration is well underway and on track. We are pleased that all regions and business segments grew at or above market. North America and Europe, which represent over ninety percent of our business, continued their strong growth in both the products and services segments. Based on the strong start in 2006, we have raised our revenue and net income guidance for 2006."

Video Webcast
Fresenius Medical Care will hold an analyst meeting at its headquarters in Bad Homburg, Germany, to discuss the results of the second quarter and the first half of 2006 on August 3, 2006, at 3.15 p.m. CEDT / 9.15 a.m. EDT. The Company invites you to view the live video webcast of the meeting at the Company's website www.fmc-ag.com in the "Investor Relations" section. A replay will be available shortly after the meeting.

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Fresenius Medical Care is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,400,000 individuals worldwide. Through its network of 2,078 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to 161,675 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products.

For more information about Fresenius Medical Care visit the Company's website at www.fmc-ag.com.

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Sales: Euro 5.1 billion, + 37 % at actual rates,+ 34 % in constant currency
EBIT: Euro 681 million, + 50 % at actual rates , + 46 % in constant currency
Net income: Euro 140 million, + 39 % at actual rates, + 36 % in constant currency

Fresenius Medical Care with strong sales and earnings growth
Fresenius Kabi in the second quarter with EBIT margin record of more than 15 %
Fresenius ProServe fully on track
Integration of Renal Care Group progressing well; integration of HELIOS/WKA completed

Group outlook 2006: Sales and earnings forecast raised
Given the Company's strong performance in the first half, Fresenius raises its full-year 2006 sales and earnings outlook. Group sales are now expected to increase by approximately 35 % in constant currency to about € 10.7 billion. Net income is projected to grow by about 40 % in constant currency. The net income guidance already includes an amount of approximately € 27 million (after tax) associated with expected one-time expenses as well as expenses related to the stock option accounting change. Previously, the Company had expected net income growth to exceed 30 %. Earnings per share are now projected to increase by approximately 15 % in constant currency. Previously, earnings per share growth of around 10 % had been projected.

Sales – Strong growth continues
Group sales increased by 37 % to € 5,078 million (H1 2005: € 3,702 million). Excellent organic growth contributed 9 % to revenue growth. Acquisitions, in particular the first-time consolidation of Renal Care Group and HELIOS Kliniken in the income statement, contributed 25 %. Currency translation effects added 3 % to sales growth.

In North America, sales grew significantly due to the first-time consolidation of Renal Care Group. In addition, organic growth was excellent with 8 %. In Europe, the substantial sales increase was driven by the first-time consolidation of HELIOS Kliniken. However, underlying organic growth came in at a very good rate of 7 %. Excellent growth rates were achieved in the emerging markets, with organic growth of 24 % in Asia-Pacific and 19 % each in Latin America and Africa.

Sales contribution of the three business segments:

Fresenius ProServe's increased sales contribution is the result of the consolidation of HELIOS Kliniken.

Strong earnings growth
Group EBIT increased by 50 % at actual rates and by 46 % in constant currency to € 681 million (H1 2005: € 453 million). The growth was driven by the successful operating performance of all business segments as well as the first-time consolidation of Renal Care Group and HELIOS Kliniken. EBIT includes a gain of € 32 million from the divestitures of dialysis clinics in the USA. The sale was a condition of the US Federal Trade Commission for the approval of the Renal Care Group acquisition. EBIT also includes a total of € 11 million one-time expenses and expenses related to the stock option accounting change.

Primarily, given the debt financing of the Renal Care Group acquisition, Group net interest increased to € -194 million (H1 2005: -97 million). This number however also includes one-time expenses of € 30 million associated with the refinancing of Group debt.

The tax rate was 41.9 % (H1 2005: 39.3 %). It was substantially influenced by the tax expense associated with the divestitures of the dialysis clinics in the USA. As the goodwill attributable to the divested clinics is not considered for tax purposes, the sale resulted in a loss of € 2 million after tax. Excluding this effect the tax rate was 36.9 %.

Minority interest was € 143 million (H1 2005: € 115 million). 94 % was attributable to the minority interest of Fresenius Medical Care.

Group net income grew by 39 % at actual rates and by 36 % in constant currency to € 140 million (H1 2005: € 101 million). This result includes one-time expenses of € 19 million, primarily for the refinancing of debt as well as for expenses related to the stock option accounting change. Thus, approximately 70 % of the expected one-time expenses for the full-year 2006 are already included in the Group net income.

Earnings per ordinary share rose to € 2.75 (H1 2005: € 2.46) while earnings per preference share rose to € 2.77 (H1 2005: € 2.48). This is an increase of 12 % for both share classes (9 % in constant currency). The average number of shares grew to 50,852,320 mainly due to the share issue in December 2005.

Investments
Fresenius Group spent € 225 million for property, plant and equipment and intangible assets (H1 2005: € 115 million). Acquisition spending increased to € 3,408 million due to the acquisition of Renal Care Group (H1 2005: € 227 million).

Cash flow
Operating cash flow increased by 17 % to € 385 million (H1 2005: € 329 million). The key driver was the significant improvement in earnings whereas the tax expense associated with the divestitures of the dialysis clinics had a negative effect. Cash flow before acquisitions and dividends was € 172 million (H1 2005: € 224 million). The acquisition of Renal Care Group was financed through bank debt.

Solid balance sheet structure
Total assets increased by 28 % to € 14,831 million (December 31, 2005: € 11,594 million). In constant currency, total assets grew 34 %. The substantial increase is mainly related to the Renal Care Group acquisition which was consolidated in the balance sheet for the first time as of March 31, 2006. Current assets increased by 10 % to € 3,871 million (December 31, 2005: € 3,531 million). Non-current assets were € 10,960 million (H1 2005: € 8,063 million), an increase of 36 %. This was primarily due to the goodwill resulting from the Renal Care Group acquisition.

Group debt increased to € 6,154 million (December 31, 2005: € 3,502 million) due to financing of the Renal Care Group acquisition. As of June 30, 2006, the net debt/EBITDA ratio was 3.3 (December 31, 2005: 2.3).

Shareholders' equity including minority interest grew 5 % to € 5,380 million (December 31, 2005: € 5,130 million), driven by the very good earnings development. Given the debt financing of the Renal Care Group acquisition, the equity ratio (including minority interests) decreased to 36.3 % (December 31, 2005: 44.2 %).

Employees
As of June 30, 2006, the Group had 100,196 employees worldwide (December 31, 2005: 91,971). The increase of 8,225 employees is primarily due to the acquisition of Renal Care Group.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies for the treatment of the immune system. 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.

Fresenius Biotech has successfully continued its clinical study program. The company reported encouraging results of a phase IIa study with the trifunctional antibody removab® in the treatment of ovarian cancer patients. Based on these results, Fresenius Biotech is planning to start a European phase II study for this indication in the second half of 2006.

A phase II study on breast cancer started in March 2006. About 40 patients will be included in the trial. A phase II study for the treatment of gastric cancer with approximately 50 patients started in June 2006. The results from the malignant ascites phase II/III study are expected at the end of this year.

For the full year 2006, Fresenius Biotech continues to expect an EBIT in the range of € -45 to -50 million, largely due to the higher expenses for expanded clinical study program.

The Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of products and services for patients with chronic kidney failure. As of June 30, 2006, Fresenius Medical Care (incl. Renal Care Group and after divestitures) was serving 161,675 patients in 2,078 dialysis clinics.

* before one-time expenses, expenses related to the stock option accounting change and the effect of the FTC-related clinic divestitures in the USA

Strong sales and earnings growth in all regions
Renal Care Group integration well under way and on track
Outlook for 2006 upgraded

Fresenius Medical Care achieved strong sales growth of 19 % to US$ 3,912 million (H1 2005: US$ 3,283 million). This was driven by both the excellent operating performance and the first-time consolidation of Renal Care Group in the income statement. Organic growth reached 9 %. Sales in dialysis care increased by 24 % to US$ 2,924 million (H1 2005: US$ 2,363 million). In dialysis products, Fresenius Medical Care achieved sales of 988 million US$ (H1 2005: US$ 920 million), an increase of 7 % (10 % in constant currency).

In North America, Fresenius Medical Care increased sales by 24 % to US$ 2,754 million (H1 2005: US$ 2,215 million). Organic growth reached 8 %. Sales outside North America ("International") grew by 8 % (12 % in constant currency) to US$ 1,158 million (H1 2005: US$ 1,068 million).

Net income increased by 10 % to US$ 246 million (H1 2005: US$ 223 million). This result includes one-time expenses of US$ 20 million primarily for the refinancing of Fresenius Medical Care debt, for expenses related to the stock option accounting change as well as for the after-tax loss on the divestitures of dialysis clinics in the USA. Excluding the above effects net income was up 19 % to US$ 266 million.

Based on the strong performance in the first half of 2006, Fresenius Medical Care upgrades its guidance for the full year 2006. After expecting to report a revenue of about US$ 8.1 billion, the company now expects a revenue for 2006 of about US$ 8.3 billion.

Fresenius Medical Care also upgrades its outlook for reported net income for 2006. After expecting a net income between US$ 515 million and US$ 535 million, the company now expects to report a net income of at least US$ 542 million, which represents an increase of at least 15% over the 2005 level.

In order to show the underlying performance of Fresenius Medical Care, the guidance provided does not take into effect any expected one-time items and the stock option accounting change. After previously assuming the after-tax impact of one-time items and the stock option accounting change to be about US$ 60 million Fresenius Medical Care now expects this impact to be about US$ 40 million for the full year 2006.

For further information, please see Fresenius Medical Care's Investor News 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.

Strong organic sales growth of 8 %
Record EBIT margin of more than 15 % in the second quarter
Sales and earnings outlook for 2006 raised

Fresenius Kabi's sales increased by 15 % to € 937 million (H1 2005: € 818 million). The company achieved strong organic growth of 8 %. Acquisitions, primarily Clinico and the first-time consolidation of Pharmatel, contributed 4 % to sales. Currency translation added a further 3 %.

Sales in Europe (excluding Germany) increased by 9 %, in Germany by 5 %. Fresenius Kabi did extremely well in the emerging markets outside Europe and achieved sales growth of 44 % in Asia-Pacific, 36 % in Latin America and 25 % in the other regions. Organic growth in the regions outside Europe was well into the double digits.

Fresenius Kabi showed an excellent performance at the EBIT level, with an increase of 26 % to € 139 million (H1 2005: € 110 million). The EBIT margin improved by 140 basis points to 14.8 % (H1 2005: 13.4 %). In the second quarter, the EBIT margin reached a new record level of 15.1 %. Net profit rose by 18 % to € 60 million (H1 2005: € 51 million). This already includes one-time expenses of € 11 million for the early redemption of the 2003 Eurobond.

Based on the excellent performance in the first half, Fresenius Kabi raises its EBIT margin outlook for the full year 2006 from previously 14.5-15.0 % to now >15 %. The company now expects sales growth of 11 to 12 % in constant currency. Previously, growth of around 10 % had been projected.

Fresenius ProServe
Fresenius ProServe is a leading German hospital operator with more than 50 facilities. Moreover, the company offers engineering and services for hospitals and other health care facilities as well as for the pharmaceutical industry.

Very good performance in hospital operations
Strong order intake in the engineering & services businesses
Outlook for 2006 fully confirmed

Fresenius ProServe achieved excellent financial results. Sales grew by 3 % to € 974 million (H1 2005 incl. HELIOS Kliniken: € 942 million). Organic growth amounted to 4 %. On a comparable basis, EBIT increased by 15 % to € 62 million (H1 2005 incl. HELIOS Kliniken: € 54 million).

Sales in hospital operations (HELIOS Kliniken Group) amounted to € 767 million (H1 2005: € 765 million). Organic growth was 2 %. EBIT increased to € 56 million, the EBIT margin improved to 7.3 % (H1 2005 incl. HELIOS Kliniken: € 48 million and 6.3 %). The integration of WKA into HELIOS Kliniken Group was successfully completed. The focus is now on continued efficiency improvements at the WKA clinics and on further growth through privatization in the German hospital market.

Sales in the engineering and services business (VAMED, Pharmaplan) increased 17 % to € 207 million (H1 2005: € 177 million). EBIT rose 50 % to € 9 million (H1 2005: € 6 million). Order intake and order backlog continued to develop very positively. Order intake increased by 19 % to € 185 million (H1 2005: € 156 million). Order backlog rose 14 % to € 409 million as of June 30, 2006 (December 31, 2005: € 360 million).

In March 2006, HELIOS Kliniken agreed to acquire HUMAINE Kliniken GmbH. HUMAINE operates six acute and post-acute care hospitals with a total of 1,850 beds. The transaction is expected to be completed in the third quarter. The acquisition of HUMAINE will be accretive to Fresenius Group's earnings per share in the fiscal year 2006 already.

Fresenius ProServe confirms its 2006 full-year outlook and expects revenue growth of 1 to 3 % before acquisitions, based on 2005 revenues including HELIOS of € 2,009 million. EBIT is forecast to rise to € 140 to 150 million (2005 incl. HELIOS: € 125 million).

Video Webcast
As part of the publication of our results for the first half of 2006, an analyst conference will be held at the Fresenius headquarters in Bad Homburg on August 3, 2006 at 1:30 p.m. CEDT (7.30 a.m. EDT). You are cordially invited to follow the conference in a live broadcast on our website under Investor Relations / Presentations. Following the meeting, a recording of the conference will be available as video-on-demand.

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Fresenius Group in Figures
Consolidated statement of income (US GAAP) (unaudited)
see PDF-File

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