• Sales: € 1.72 billion, + 8 % in constant currency; - 1 % at actual exchange rates
• EBIT: € 197 million, + 12 % in constant currency; + 2 % at actual exchange rates
• Net income: € 39 million, + 17 % in constant currency; + 8 % at actual exchange rates

Fresenius Group business development in the first quarter 2004 was very positive but significantly impacted by exchange rate fluctuations: Sales rose 8 % in constant currency and decreased 1 % at actual exchange rates. EBIT rose 12 % in constant currency and 2 % at actual exchange rates. Net income increased 17 % in constant currency and 8 % at actual exchange rates. The Group's two largest business segments Fresenius Medical Care and Fresenius Kabi contributed strongly to this positive business development. Fresenius ProServe continued its profit improvement program at Wittgensteiner Kliniken (WKA) in the first quarter 2004.

Positive Group outlook for the full year 2004
The very strong first quarter results and the positive business development at Fresenius Medical Care and Fresenius Kabi reinforce our full-year outlook for the Group: Fresenius expects a mid single-digit percent increase in 2004 sales in constant currency. Net income is expected to grow in the range of 25 to 30 % in constant currency. We expect sales and earnings to increase in all business segments.

Sales
In the first quarter 2004, Group sales increased 8 % in constant currency. Organic growth contributed 6 % and acquisitions 2 %. Currency translation effects had a 9 % negative impact on sales. At actual exchange rates sales were € 1.72 billion, down 1 % on last year's figure of € 1.73 billion.

Sales in North America accounted for 48 % and Europe for 40 % of total sales, followed by Asia-Pacific with 7 %. Sales in Latin America and other regions contributed with 5 % to total sales. The highest regional growth rates were achieved in Asia-Pacific and Latin America. We expect that Asia-Pacific and Latin America will continue to offer above-average growth potential for Fresenius in the future.

Sales contribution of the three business segments:

Fresenius Medical Care's lower share of Group sales is mainly due to currency translation.

Earnings
Currency translation effects also impacted Group earnings: In constant currency earnings before interest, income taxes, depreciation and amortization (EBITDA) increased 8 % compared to the first quarter of 2003. At actual rates EBITDA decreased 1 % to € 269 million (Q1 2003: € 271 million). Group EBIT increased 12 % in constant currency and 2 % at actual exchange rates to € 197 million (Q1 2003: € 194 million).

Group net interest expense improved by 19 % to € -52 million compared to € -64 million last year. This positive development was attributable to a lower debt level, and the fact that Fresenius Medical Care converted a portion of its debt from fixed to variable interest rates. In addition, currency translation had a positive effect.

The effective tax rate for the first quarter 2004 was 40.0 % (Q1 2003: 39.2 %).

Minority interests increased to € 48 million (Q1 2003: € 43 million). 96 % of minority interests relate to Fresenius Medical Care.

At actual exchange rates Group net income was € 39 million, up 8 % from the first quarter 2003. In constant currency Group net income would have increased 17 %.

Earnings per ordinary share were € 0.94, an increase of 8 % from € 0.87 in the first quarter 2003. Earnings per preference share were € 0.95 (Q1 2003: € 0.88), an increase of 8 %.

Capital expenditure and acquisitions
Fresenius spent € 89 million in the first quarter 2004 on capital expenditure and acquisitions (Q1 2003: € 88 million). Of this amount € 48 million was spent on capital expenditure (Q1 2003: € 56 million) and € 41 million on acquisitions (Q1 2003: € 32 million).

Capital expenditure was mainly used to expand and modernize existing dialysis clinics at Fresenius Medical Care. We also invested in further expanding and optimizing production plants at Fresenius Kabi, and in modernizing and supplying medical technical equipment to Fresenius ProServe clinics.

Acquisitions related mainly to the purchase of dialysis clinics by Fresenius Medical Care. Fresenius Medical Care spent € 38 million on acquisitions in the first quarter 2004.

Europe accounted for 51 % of Group investments, North America for 43 % and other regions for 6 %.

Cash flow
Group operating cash flow and free cash flow again showed a strong performance. Operating cash flow increased 33 % to € 182 million (Q1 2003: € 137 million). This was mainly due to the positive change in working capital. Free cash flow before acquisitions and dividends increased 64 % to € 136 million (Q1 2003: € 83 million). This increase resulted from the strong operating cash flow, while net investments were down 15 % to € 46 million. Free cash flow after acquisitions and dividends was € 98 million, a significant increase of 72 % (Q1 2003: € 57 million).

Asset and capital structure
Total assets increased 5 % to € 8,757 million (December 31, 2003: € 8,347 million). In constant currency total assets would have increased 3 %. Total current assets were up 10 % to € 3,008 million (December 31, 2003: € 2,744 million). This resulted mainly from an increase in trade accounts receivable, since receivables from the Fresenius Medical Care receivable securitization program are stated in the balance sheet following an amendment of the program. In addition, business expansion had an impact.

This led to an increase in debt to € 3,155 million at actual rates and € 3,095 million in constant currency as of March 31, 2004 (December 31, 2003: € 3,023 million; debt including liabilities from the receivables securitization program of Fresenius Medical Care as at December 31, 2003: € 3,148 million).

The key ratio of net debt/EBITDA was 2.7 on March 31, 2004, the same as at the end of 2003.

Shareholders' equity (including minority interests) was € 3,360 million, up 5 % from € 3,214 million as at December 31, 2003. The equity ratio including minority interests slightly decreased from 38.5 % as at December 31, 2003 to 38.4 % at the end of the first quarter 2004.

Employees
As at March 31, 2004, Fresenius had 67,189 employees worldwide, an increase in headcount of 1 % compared to 66,264 employees as at December 31, 2003.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer and cell therapies used to treat end-stage HIV infection. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG Fresenius S for many years. This product is an immune suppressive agent used to prevent rejections following organ transplantations.

Fresenius Biotech continued its projects according to plan. In the field of trifunctional antibodies for cancer treatment, a phase Ila study for the treatment of ovarian cancer is starting up. The primary objective of this study is to determine an optimized dosage as well as to further examine its efficacy on refractory cancer patients. Some weeks ago Fresenius received Orphan Drug Designation from the European Commission for the trifunctional antibody removab® to treat patients with ovarian cancer.

The Business Segments

Fresenius Medical Care

Fresenius Medical Care AG is the world's leading provider of products and services for patients with chronic kidney failure. As of March 31, 2004, Fresenius Medical Care treated around 120,700 patients in 1,575 dialysis clinics, corresponding to a 6 % increase year over year.

Fresenius Medical Care's first quarter 2004 sales increased by 12 % to US$ 1,459 million (Q1 2003: US$ 1,299 million). In constant currency the increase was 8 %.

Sales in its largest market North America (68 % of total sales) showed a very good 7 % growth in the first quarter 2004. Sales in the international business rose by 25 % at actual rates and by 10 % in constant currency.

Sales of dialysis products increased 13 % to US$ 401 million. Sales of dialysis services increased 12 % to US$ 1,058 million. Growth in dialysis services is mainly driven by the number of treatments, which increased 8 % in the first quarter 2004. Fresenius Medical Care carried out 4.6 million dialysis treatments in the first quarter 2004, thereof 3.2 million in North America (+ 6 %) and 1.4 million (+ 12 %) in the international business.

Fresenius Medical Care increased EBIT by 17 % to US$ 198 million (Q1 2003: US$ 169 million). This increase is based on the very positive development of Fresenius Medical Care's US operations as well as the strong performance of its international business. Net income increased 30 % to US$ 91 million in the first quarter 2004.

For the year 2004, Fresenius Medical Care confirms its outlook for the top-line and expects sales growth in constant currency in the mid-single digit range. Net income growth is now expected to be at the high end of Fresenius Medical Care's original guidance - which is in the low double digit range.

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

Fresenius Kabi

Fresenius Kabi focuses on nutrition and infusion therapy for critically and chronically ill patients, in both the hospital and ambulatory care environment, and on infusion and trans-fusion technology.

Fresenius Kabi's sales were € 362 million in the first quarter 2004, up 2 % from previous year's sales of € 355 million. Fresenius Kabi had a very good organic growth of 6 %. Latin America and Asia-Pacific achieved growth rates of 18 % each. Europe contributed with a growth of 2 %, despite -5 % in Germany. Besides increasing cost savings in health care and price pressure, the German market was marked by uncertainties about the new reimbursement regulations for the ambulatory area. Currency translation reduced sales by 2 % and disinvestments had an impact of -2 %. In the first quarter 2004, Fresenius Kabi sold the medical-technical equipment rental activities of a French subsidiary through a management buy-out.

Fresenius Kabi achieved a 5 % increase in hospital business sales, to € 298 million (Q1 2003: € 284 million). Ambulatory Care sales were € 64 million, down 10 % (Q1 2003: € 71 million). This was mainly caused by the disinvestment mentioned above.

Fresenius Kabi's EBIT rose 17 % in the first quarter 2004 to € 41 million, a significant improvement on previous year's figure of € 35 million. The EBIT margin increased to 11.3 %, continuing the positive earnings trend (Q1 2003: 9.9 %).

For the full year 2004, Fresenius Kabi sales are expected to increase by mid single-digit growth rates in constant currency. The EBIT margin is expected to increase to about 11 % (2003: 10 %).

Fresenius ProServe

Fresenius ProServe offers services for international health care systems, including hospital management, the planning and construction of hospitals and pharmaceutical and medical-technical production plants.

Fresenius ProServe increased sales in the first quarter 2004 by 20 % to € 199 million (Q1 2003: € 166 million). This sales increase is entirely based on organic growth. The strong increase in sales is mainly due to the positive development in the Health care Project business.

Order intake at Fresenius ProServe increased 6 % to € 70 million in the first quarter 2004 (Q1 2003: € 66 million). This increase was mainly driven by the Health care Project business. Order backlog slightly decreased to € 431 million compared to € 435 million at December 31, 2003.

Fresenius ProServe achieved an EBIT of € 1 million in the first quarter 2004 (Q1 2003: € 6 million). This figure includes € 1 million before tax of one-time expenses for measures to cut costs and improve profitability at Wittgensteiner Kliniken AG (WKA). By reducing staffing levels and optimizing processes and costs, Fresenius ProServe is adjusting its fixed cost structure to better reflect market conditions. The current bed utilization rate in WKA's German hospitals decreased in the first quarter 2004 to 78 % compared to the previous year's level of 79 %.

Fresenius ProServe expects 2004 sales to grow by around 10 %. Based on the weak first quarter earnings performance, it will be a challenge to achieve the full-year EBIT projection of € 25 million before the anticipated 2004 WKA one-time expenses of € 8 million.

Fresenius Kabi, a company of the Fresenius healthcare group, is continuing to expand its market position in South Africa. The European leader in infusion and nutrition therapy today announced that it has acquired Isotec Nutrition from Alliance Pharmaceuticals and the general manager of Isotec, who will continue to hold an executive position. Isotec Nutrition is specialized in compounding and sales of infusion solutions for parenteral (= via the vein) nutrition. Isotec already has a longstanding sales and marketing relationship with Fresenius Kabi South Africa. In 2003, Isotec Nutrition had sales of approx. 10 million €.

Fresenius Kabi is successfully operating in South Africa with its own subsidiary since March 1999 and is the market leader in the areas of parenteral nutrition, generic IV drugs and blood volume substitution. In 2000, Fresenius Kabi acquired Intramed, the leading supplier of standard infusion solutions in South Africa. In addition, Fresenius Kabi has successfully launched products of its enteral nutrition program.

With the acquisition of Isotec Nutrition, Fresenius Kabi further strengthens it's leading position in the field of parenteral nutrition in the South African market. Furthermore, the company completes its product range in the field of infusion and nutrition therapy and has a strong platform for future growth not only in South Africa, but in the whole southern part of the continent. With a population of approximately 200 million people, the southern part of Africa is an important international growth market for Fresenius Kabi.

Summary Second Quarter 2004:
Company raises guidance on following strong first half performance.

• Net Revenue: $ 1,552 million, +14%
• Operating Income (EBIT): $ 213 million, +16%
• Net income: $ 101 million, +27%
• Operating Cash Flow: $ 180 million, +3%
• Free Cash Flow: $ 126 million, -9%

Bad Homburg, Germany - August 04, 2004 -- Fresenius Medical Care AG ("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 of 2004.

Second Quarter 2004

Revenue
Total revenue for the second quarter 2004 increased 14% (12% at constant currency) to $ 1,552 million. The consolidation of the Cardio Vascular Resources and certain dialysis clinics in accordance with a new accounting regulation (FIN 46R) contributed approx. 2.6% to the growth rate. Dialysis Care revenue grew by 15% to $ 1,127 million (14% at constant currency) in the second quarter of 2004. Same store treatment growth worldwide was 4%. Dialysis Product revenue (including internal sales) increased 11% to $ 557 million (7% at constant currency) in the same period. The internal sales increased to $ 132 million after $ 116 million in the second quarter of 2003.

North America revenue increased 10% to $ 1,052 million, compared to $ 955 million in the same period last year. Dialysis Care revenue increased by 12% to $ 948 million. The average revenue per treatment increased to $ 289 in the second quarter 2004 (Q2 2003: $ 275). Dialysis Product revenue, including sales to company-owned clinics, was up 2% at $ 199 million. Product sales to the available external market was flat as expected.

International revenue was $ 500 million, up 21% from the second quarter of 2003, an increase of 15% adjusted for currency. Dialysis Care revenue reached $ 179 million, an increase of 35% (28% at constant currency). Dialysis Products revenue, including sales to company-owned dialysis clinics, increased 16% to $ 358 million (9% at constant currency).

Earnings
Operating income (EBIT) increased 16% to $ 213 million resulting in an operating margin of 13.7% (Q2 2003: 13.5%). The increase of 20 basis points was mainly due to increased treatments and efficiency improvements in North America. Compared to the second quarter 2003 the margin in North America increased by 50 basis points to 14.0%. In our International segment the operating margin remained at 15.0% comparable to the second quarter in the previous year. This reflects a stable European business and improvements in Latin America which were offset mainly by price pressure in Japan as a result of bi-annual reimbursement rate reductions.

Group net interest expenses decreased by 14% to $ 45 million, compared to $ 53 million last year. This positive development was mainly attributable to a lower debt level and the conversion of a portion of debt from fixed into variable interest rates.

Income tax expense was $ 67 million versus $ 51 million in the second quarter 2003, reflecting an effective tax rate of 39.8% compared to 39.0% in the second quarter of last year.

Net income in the second quarter 2004 was $ 101 million, an increase of 27% and a quarterly record for the company.

Earnings per share (EPS) in the second quarter 2004 rose 27% to $ 1.04 per ordinary share ($ 0.35 per ADS), compared to $ 0.82 ($ 0.27 per ADS) in the second quarter of 2003. The weighted average number of shares outstanding during the second quarter of 2004 was approximately 96.2 million.

Cash Flow
In the second quarter of 2004, the Company generated $ 180 million in net cash from operations. This performance was ahead of expectations and the net cash from operations represented nearly 12% of total revenue.

A total of $ 54 million (net of disposals) was spent for capital expenditures. This resulted in a Free Cash Flow before acquisitions of $ 126 million compared to the second quarter of 2003 with $ 138 million. This high level of Free Cash Flow was primarily supported by the increase in net income. The days sales outstanding (DSO) remained unchanged at 86 days in the second quarter compared to the first quarter 2004. Compared with the second quarter of the previous year DSO are reduced by 7 days. North America as well as the International region contributed to this development.

A total of $ 10 million in cash was spent for acquisitions. The Free Cash Flow after acquisitions increased therefore by 7% to $ 116 million compared to $ 109 million last year.

First Half Year 2004:

Earnings and Revenue
In the first half of 2004, net income was $ 192 million, up 28% from the first half of 2003. Net revenue was $ 3,011 million, up 13% from the first half of 2003. Currency adjusted, net revenue rose 10% in the first half of 2004. Operating income (EBIT) increased 16% to $ 411 million resulting in an operating margin of 13.6%.

Group net interest expenses for the first six months 2004 decreased by 14% to $ 92 million, compared to $ 107 million last year. Income tax expense was $ 126 million in the first half of 2004 versus $ 96 million in the same period in 2003. This reflects an effective tax rate of 39.6% compared to 38.9% in the first half of last year.

In the first half of 2004, earnings per ordinary share rose 28% to $ 1.98. Earnings per ordinary ADS for the first half of 2004 were $ 0.66.

Cash Flow
Cash from operations during the first six months of 2004 was up 17% to $ 351 million compared to $ 300 million in the first six months of 2003. A total of $ 95 million was spent for capital expenditures (net of disposals). This resulted in a Free Cash Flow for the first half of 2004 of $ 256 million compared to $ 222 million in the first half of 2003. Net cash used for acquisitions was $ 52 million.

Patients - Clinics - Treatments
At the end of the second quarter 2004, Fresenius Medical Care served about 122,700 patients worldwide which represents an increase of 6%. North America provided dialysis treatments for ~84,700 patients (+5%) and the International segment for ~38,000 patients (+9%).

As of June 30, 2004, the Company operated a total of 1,590 clinics worldwide (1,125 clinics/+3% in North America and 465 clinics/+12% International).

Fresenius Medical Care AG performed approximately 9.2 million treatments in the first half 2004, which represents an increase of 7% year over year. North America accounted for 6.4 million treatments (+5%) and the International segment for 2.9 million (+11%).

Outlook 2004
Based on the strong performance in the first half of 2004 the company lifts its guidance for the full year 2004. After expecting a net revenue growth at constant currencies in the mid-single digit range the Company now expects the top-line to grow in the high single digits. After expecting a net income growth for 2004 in the low double digit range the Company now expects net income growth to be in the mid teens.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our operating fundamentals and our financial focus continues to translate into strong top line revenue growth and bottom line earnings after tax growth. We are particularly pleased with the results of Europe, North America and Latin America. In addition, we saw continued good performance in free cash flow for the first half of 2004. We also believe that our first half-year 2004 results and our global position in this exciting market, result in a solid foundation to look optimistically toward the full-year of 2004 and beyond".

Please note:
An analyst meeting will take place today at 3.15 pm CET. This meeting will be broadcasted live over the Internet in a listen only mode at www.fmc-ag.com.

First Half 2004: Fresenius raises sales and earnings outlook

• Sales: € 3.55 billion, +9 % in constant currency, +3 % at actual exchange rates
• EBIT: € 412 million, +13 % in constant currency, +6 % at actual exchange rates
• Net income: € 80 million, +21 % in constant currency, +14 % at actual exchange rates

Business continues to develop successfully

• Earnings performance improved.
• Cashflow of € 239 million at record level.
• Fresenius Medical Care and Fresenius Kabi with excellent sales and earnings performance.
• Weak market condition continues to affect Fresenius ProServe.
• Group outlook for 2004 raised.

Group outlook for 2004
Based on the excellent results at Fresenius Medical Care and Fresenius Kabi the Company raises its full-year outlook: Fresenius now expects a high-single digit percent increase in sales in constant currency. Previously, the Company expected a mid-single digit percent increase in sales. Net income is expected to grow approximately 30 % in constant currency. Previously, the Company expected net income to grow at 25-30 %. Sales and earnings growth is expected in all business segments.

Sales
Sales in the first half of 2004 rose 9 % in constant currency. Organic growth was 7 %, acquisitions contributed 2 %. Currency translation effects had a negative 6 % effect on sales. At actual exchange rates sales increased 3 % to € 3,553 million.

Sales in North America accounted for 48 % and Europe for 39 % of total sales, followed by Asia-Pacific with 7 %. Sales in Latin America and other regions accounted for 6 % of total sales. Very good regional growth rates of 19 % in constant currency were achieved in Asia-Pacific and Latin America. We expect that Asia-Pacific and Latin America will continue to offer above-average growth opportunities for Fresenius in the future.

Sales contribution of the three business segments:

Fresenius Medical Care's lower share of Group sales is due to currency translation effects.

Earnings
The Group was able to increase earnings despite negative currency translation effects: Using actual exchange rates, EBITDA rose 4 % to € 564 million (first half 2003: € 543 million). In constant currency, EBITDA rose 10 %. Group EBIT increased 13 % in constant currency and 6 % at actual exchange rates to € 412 million (first half 2003: € 390 million).

Net interest also improved to € -104 million in the first half of 2004 compared to
€ -125 million last year. This is due to a lower debt level as well as the conversion to a variable rate from a fixed interest rate on payments on some of Fresenius Medical Care's debt. Currency exchange rates also had a favorable impact.

The effective tax rate for the first half 2004 was 40.6 % (first half 2003: 39.2 %).

In the first half of 2004, minority interests increased to € 103 million compared to € 91 million in the first half of 2003. 96 % of minority interests were attributed to Fresenius Medical Care.

Net income rose 21 % in constant currency and 14 % at actual exchange rates, to € 80 million (first half 2003: € 70 million). The excellent operating performance of Fresenius Medical Care and Fresenius Kabi as well as significantly lower interest expenses resulted in the increase in net income despite higher taxes.

Earnings per ordinary share rose to € 1.95 (first half 2003: € 1.70). Earnings per preference share rose to € 1.97 (first half 2003: € 1.72). This represents an increase of 14 %.

Investments
In the first half, Fresenius invested € 172 million (first half 2003: € 157 million) including € 111 million on capital expenditures for property, plant and equipment and intangible assets (first half 2003: € 113 million) and € 61 million on acquisitions (first half 2003: € 44 million).

Capital expenditures at Fresenius Medical Care were mainly used to construct new dialysis clinics or expand and modernize existing clinics as well as maintain and expand production sites. Fresenius Kabi's production sites were expanded and optimized. The investments at Fresenius ProServe included the purchase of technical medical equipment as well as the modernization of hospitals and clinics, such as the construction of highly modern operating theatres in an orthopedic clinic.

Fresenius Medical Care spent € 49 million on acquisitions mainly to buy dialysis clinics. € 12 million was spent on acquisitions for Fresenius Kabi and Fresenius ProServe. Europe accounted for 45 % of Group investments, North America for 44 % and other regions for 11 %.

Cash flow
Operating cash flow and free cash flow reached new all-time highs in the first-half year: Operating cash flow rose 9 % to € 340 million (first half 2003: € 311 million) due to the positive development of Group net income. Free cash flow before acquisitions and dividends increased 15 % to € 239 million (first half 2003: € 208 million). Free cash flow after acquisitions and dividends rose 6 % to € 67 million (first half 2003: € 63 million). Cash used for acquisitions was € -53 million (net) and dividends were € -119 million.

Asset and capital structure
Total assets rose 5 % to € 8,792 million (December 31, 2003: € 8,347 million) or 3 % in constant currency. Total current assets increased 10 % to € 3,031 million (December 31, 2003: € 2,744 million). This increase was due mainly to an increase in trade accounts receivable (+14 %), since receivables from the Fresenius Medical Care receivable securitization program are stated in the balance sheet starting this year following an amendment of the program.

This change impacted also group debt. Debt was € 3,188 million at actual rates (constant currency: € 3,123 million) as of June 30, 2004. In comparison, debt at the end of 2003 including liabilities related to the receivable securitization program was € 3,148 million (excluding the securitization program: € 3,023 million).

The ratio of net debt/EBITDA remained unchanged from the end of 2003 at 2.7.

Shareholders' equity including minority interests was € 3,375 million, up 5 % from € 3,214 million on December 31, 2003. The equity ratio including minority interests was 38.4 % (December 31, 2003: 38.5 %).

Employees
Fresenius had 69,128 employees worldwide on June 30, 2004, an increase of 4 % over the 66,264 employees at the end of 2003.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies used to treat end-stage HIV infection. 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 rejection following organ transplantations.

As expected, the first results from a phase I study using the trifunctional antibodies in non-small-cell lung cancer, breast cancer and peritoneal carcinomatosis are planned to be announced during the remainder of this year.

First intermediate results of a phase I/II study reviewing the treatment of patients with end-stage HIV infection will be available in early 2005. The study is expected to show whether the mode of action functions in treating humans.

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 at June 30, 2004, Fresenius Medical Care treated about 122,700 patients (+6 %) in 1.590 dialysis clinics (+5 %).

• Excellent growth in sales (+13 %) and net income (+28 %)
• Number of dialysis treatments rose 7 %
• Full-year guidance raised

In the first half of 2004, Fresenius Medical Care achieved significant sales growth of 13 % to $ 3,011 million (first half 2003: $ 2,666 million), or 10 % in constant currency.

Fresenius Medical Care increased sales by strong 9 % in its key North American market which accounts for 68 % of sales. Outside North America (International segment) sales rose 23 %, or a strong 13 % increase in constant currency.

Sales of dialysis products at Fresenius Medical Care increased 11 % to $ 826 million. Sales of dialysis services grew 14 % to $ 2,185 million. Dialysis services sales are mainly determined by the number of treatments: In the first half of 2004, Fresenius Medical Care performed 9.2 million dialysis treatments, 7 % more than in the first half of 2003, including 6.3 million (+5 %) in North America and 2.9 million (+11 %) outside North America.

Fresenius Medical Care increased EBIT by 16 % to $ 411 million in the first half of 2004 from $ 353 million in the first half of 2003. Net income at Fresenius Medical Care increased 28 % in the first half to $ 192 million.

Based on the strong performance in the first half of 2004 Fresenius Medical Care lifts its guidance for the full year 2004. After expecting a net revenue growth at constant currencies in the mid-single digit range Fresenius Medical Care now expects the top-line to grow in the high-single digits. After expecting a net income growth for 2004 in the low double digit range Fresenius Medical Care now expects net income growth to be in the mid teens.

For further information, please see Fresenius Medical Care's website: www.fmc-ag.com.  

Fresenius Kabi

Fresenius Kabi is a leading provider of nutrition and infusion therapy for critically and chronically ill patients in the hospital and ambulatory environment. In addition, the company offers products in the field of infusion and transfusion technology.

• EBIT increase of 20 %
• Excellent organic growth of 6 %
• Full-year margin forecast increased from 11.0 % to approximately 11.5 %
• Capital Market Day planned for December 8, 2004

Sales at Fresenius Kabi rose 3 % to € 738 million (first half 2003: € 718 million). Fresenius Kabi achieved excellent overall organic growth of 6 %. Latin America and Asia-Pacific performed exceptionally well, accounting for organic growth of 13 % and 21 % respectively. Pricing pressure and cost-cutting in the health care sector led to a 6 % decline in sales in Germany. Excluding Germany, Fresenius Kabi achieved organic revenue growth of 8 % in Europe. Currency exchange rates had an effect of -1 % on first-half sales. Divestments decreased sales by 2 %.

Fresenius Kabi's EBIT increased by 20 % to € 85 million in the first half of 2004. This result significantly exceeds last year's figure of € 71 million. The EBIT margin increased by 160 basis points from 9.9 % in the first half of 2003 to 11.5 %, continuing the positive earnings trend.

Based on the good first-half year results, Fresenius Kabi is raising its earnings outlook and now expects the EBIT margin to increase to approximately 11.5 % after predicting 11.0 % in February. Full-year sales at Fresenius Kabi in constant currency are expected to achieve an increase in the mid-single digit percentages.

A Capital Market Day is dated for December 8, 2004 to present in detail Fresenius Kabi's business and strategic direction.

Fresenius ProServe

Fresenius ProServe offers services to the international health care sector. The health care business includes hospital management as well as the planning and construction of hospitals. The pharma industry business focuses on the planning and the construction of pharmaceutical plants and medical technical production sites.

• Organic growth of 14 %
• Order intake increased
• Continued low bed utilization in Germany
• 2004 EBIT forecast lowered to € 15 to € 20 million before one-time expenses

First-half sales at Fresenius ProServe rose to € 383 million, an increase of 14 % compared to the first half of 2003 (€ 336 million) due entirely to organic growth. Sales growth came primarily from the positive development of the health care project business.

Order intake at Fresenius ProServe increased in the first half by 6 % to € 136 million (first half 2003: € 128 million). This increase grew out of projects both in the health care and the pharma industry business. The order backlog was € 438 million (December 31, 2003: € 435 million).

Fresenius ProServe achieved an EBIT before one-time expenses of € 6 million (first half 2003: € 10 million). Including one-time expenses of € 6 million (before tax), EBIT was € 0 million. The 79 % bed utilization rate at the German hospital business of WKA was below the 80 % in the first half of 2003. To adjust its fixed costs to market conditions, Fresenius ProServe is reducing staff and optimizing processes and costs.

The full-year EBIT target of € 25 million before one-time expenses is no longer achievable since first-half results of 2004 were below expectations and the bed utilization rate continues to remain weak. Fresenius ProServe now expects an EBIT between € 15 million and € 20 million before one-time expenses. One-time expenses are expected to be in the range of € 8 million. Sales at Fresenius ProServe are still expected to increase 10 % in 2004.

Please note:

An analyst meeting will take place today at 1.30 pm CET. This meeting will be broadcasted live over the Internet in a listen only mode at www.fresenius-ag.com.

Fresenius Kabi and the Australian pharmaceutical company Pharmatel Pty Ltd. have formed a joint venture to market infusion and nutrition therapy products in Australia. Fresenius Kabi holds a 25.1 % and Pharmatel a 74.9 % stake in the joint venture. Fresenius Kabi will increase its stake to 50.1 % until 2006. The new company, Pharmatel Fresenius Kabi Pty Ltd., was launched September 1, 2004 and sells products of Fresenius Kabi and of Pharmatel.
Pharmatel Pty Ltd., headquartered in Sydney, has a leading market position in Australia in the field of oncology compounding. It also specializes in gastrointestinal therapies including bowel lavage products for bowel cleansing prior to colonoscopy or surgery. The company had sales of approx. € 18 million in 2003 and employs 65 people. The current management team of Pharmatel will continue to hold executive positions within the joint venture.

"The joint venture with Pharmatel is a further step of our strategy to expand into growth markets. Its compounding facilities in Sydney and Melbourne are a perfect platform for Fresenius Kabi to enter the parenteral nutrition compounding market in Australia. Pharmatel has excellent relationships with hospitals, high local awareness and a very good reputation for customer service. It is our goal to become one of the leading hospital suppliers in Australia", Mats Henriksson, Member of the Management Board of Fresenius Kabi and responsible for the Region Asia Pacific, commented.

"By partnering with Fresenius Kabi, Pharmatel strengthens its middle and long term position in the Australian market", Pharmatel Chairman and Managing Director George Shortis said.

Fresenius AG today announces the retirement of Mr. Udo Werlé (60) after eleven successful years as Chief Financial Officer and Labor Relations Director of Fresenius AG, effective December 31, 2004. He will continue to be involved with the Group as a consultant.

After joining the Management Board of Fresenius AG in 1994, Udo Werlé was instrumental in the successful growth of the Group. He played a key role in the acquisition of the dialysis services company National Medical Care as well as the formation of Fresenius Medical Care in 1996. He also served on the Board of Management of Fresenius Medical Care AG as Chief Financial Officer from 1996 to 1997 and as Chief Executive Officer from 1998 to 1999.

The Supervisory Board of Fresenius AG unanimously appointed Mr. Stephan Sturm (41) as new Chief Financial Officer and Labor Relations Director beginning January 1, 2005.

Stephan Sturm began his career at McKinsey before entering the banking sector in 1991. In 1998 he joined Credit Suisse First Boston where he currently serves as Managing Director Investment Banking responsible for Germany and Austria. He also is a member of CSFB's European Management Committee.

"Mr. Werlé played a key role in the development of the Group for many years. We are very indebted to him for his contributions and wish him all the best for the future. I very much welcome Mr. Sturm as a new member of our Management Board and Chief Financial Officer and look forward to working together. His broad financial experience and familiarity with Fresenius and the health care industry will assure a seamless transition in this vital function," commented Dr. Ulf M. Schneider, Chairman of the Management Board of Fresenius AG.

Fresenius Medical Care AG ("the Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world's largest provider of Dialysis Products and Services, today announced that its wholly owned subsidiaries, Fresenius Medical Care Holdings, Inc. and Spectra Renal Management, received on October 26 subpoenas from the U.S. Department of Justice, Eastern District of New York. The subpoenas require production of a broad range of documents relating to the company's operations, with specific attention to documents relating to testing for parathyroid hormone (PTH) levels and vitamin D therapies.

The company will cooperate with the government's investigation.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Fresenius Medical Care North America ("FMC-NA") has operated since 1999 with one of the leading compliance programs in the US healthcare industry. We are firmly committed to compliance; our rigorous compliance program involves ongoing evaluation of business operations, compliance training for all employees, and audits of laboratory and dialysis services programs. FMC-NA's compliance program and its compliance audits, are subject to review each year by an independent review organization, and FMC-NA reports the results to the Office of the Inspector General. We will seek to meet with representatives of the government to discuss the issues addressed in the subpoena and are optimistic that the controls imbedded in our compliance program will be well received."

Conference Call
For further explanation on this matter Fresenius Medical Care will hold a Conference Call to discuss this matter on October 28, 2004, at 3:00 pm CET / 9:00 am EST. The dial in number is +1-706-645-9185 (International and North American Caller). A replay of the conference call will be available shortly after the event on Fresenius Medical Care's web page www.fmc-ag.com.

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

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

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

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

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

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

Summary Third Quarter 2004:
The Company upgrades net income guidance for 2004.

• Net Revenue: $ 1,577 million, + 12%
• Operating Income (EBIT): $ 214 million, + 9%
• Net Income: $ 102 million, + 17%
• Operating Cash Flow: $ 209 million, + 3%
• Free Cash Flow: $ 161 million, + 6%

Bad Homburg, Germany – August 04, 2004 -- Fresenius Medical Care AG ("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 third quarter and the first nine months of 2004.


Third Quarter 2004

Revenue

Total revenue for the third quarter 2004 increased 12% (10% at constant currency) to $ 1,577 million. The consolidation of the Cardio Vascular Resources business and certain dialysis clinics in accordance with a new accounting regulation (FIN 46R) contributed approx. 2% to the growth rate. Dialysis Care revenue grew by 13% to $ 1,149 million (12% at constant currency) in the third quarter of 2004. Organic revenue growth worldwide was 7%. Dialysis Product revenue (including internal sales) increased 9% to $ 555 million (4% at constant currency) in the same period. The internal sales increased to $ 128 million after $ 119 million in the third quarter of 2003.

North America revenue increased 10% to $ 1,078 million, compared to $ 978 million in the same period last year. Dialysis Care revenue increased by 11% to $ 971 million. The average revenue per treatment increased to $ 291 in the third quarter 2004 (Q3 2003: $ 279). Dialysis Product revenue, including sales to company-owned clinics, was up 3% at $ 199 million. Product sales to the available external market was flat.

International revenue was $ 499 million, up 15% from the third quarter of 2003, an increase of 8% adjusted for currency. Dialysis Care revenue reached $ 177 million, an increase of 22% (14% at constant currency). Dialysis Products revenue, including sales to company-owned dialysis clinics, increased 13% to $ 357 million (5% at constant currency).

Earnings

Operating income (EBIT) increased 9% to $ 214 million resulting in an operating margin of 13.6% (Q3 2003: 14.0%). The decrease of 40 basis points was mainly due to price pressure in Japan as a result of bi-annual reimbursement rate reductions partially offset by operating improvements in Latin America. Compared to the third quarter 2003 the margin in North America remained stable at 14.0%. On a comparable basis excluding the new accounting regulation FIN 46R, the margin in North America would have been 14.2% which represents an increase of 20 basis points compared to the third quarter 2003. In our International segment the operating margin decreased by 120 basis points to 14.3% compared to the third quarter in the previous year. In the International segment the comparable margin would have been 14.5% in the third quarter of 2004.

Group net interest expenses decreased by 14% to $ 45 million, compared to $ 53 million last year. This positive development was mainly attributable to a lower debt level and the conversion of a portion of debt from fixed into variable interest rates.

Income tax expense was $ 67 million versus $ 56 million in the third quarter 2003, reflecting an effective tax rate of 39.8% compared to 39.1% in the third quarter of last year.

Net income in the third quarter 2004 was $ 102 million, an increase of 17%.

Earnings per share (EPS) in the third quarter 2004 rose 17% to $ 1.06 per ordinary share ($ 0.35 per ADS), compared to $ 0.90 ($ 0.30 per ADS) in the third quarter of 2003. The weighted average number of shares outstanding during the third quarter of 2004 was approximately 96.2 million.

Cash Flow

In the third quarter of 2004, the Company generated $ 209 million in net cash from operations. This performance was ahead of expectations and the net cash from operations represented about 13% of total revenue.

A total of $ 48 million (net of disposals) was spent for capital expenditures. This resulted in a Free Cash Flow before acquisitions of $ 161 million compared to the third quarter of 2003 with $ 152 million. This was another quarterly record for Free Cash Flow. The high level of Free Cash Flow was primarily supported by the increase in net income. In addition, the days sales outstanding (DSO) were reduced by one day to 85 days in the third quarter compared to the second quarter 2004. Compared with the third quarter of the previous year DSO are reduced by 7 days.

A total of $ 22 million in cash was spent for acquisitions. The Free Cash Flow after acquisitions increased therefore by 7% to $ 139 million compared to $ 130 million last year.


First Nine Months 2004:

Earnings and Revenue

In the first nine months of 2004, net income was $ 294 million, up 24% from the first nine months of 2003. Net revenue was $ 4,588 million, up 13% from the first nine months of 2003. Currency adjusted, net revenue rose 10% in the same period. Operating income (EBIT) increased 14% to $ 625 million resulting in an operating margin of 13.6%. On a comparable basis (excl. the new accounting regulation FIN 46R) the operating margin would have been 13.8% vs. 13.5% for the first nine months 2003.

Group net interest expenses for the first nine months 2004 decreased by 14% to $ 137 million, compared to $ 159 million last year. Income tax expense was $ 193 million in the first nine months of 2004 versus $ 152 million in the same period in 2003. This reflects an effective tax rate of 39.7% compared to 39.0% in the first nine months of last year.

In the first nine months of 2004, earnings per ordinary share rose 24% to $ 3.04. Earnings per ordinary ADS for the same period were $ 1.01.

Cash Flow

Cash from operations during the first nine months of 2004 was up 11% to $ 560 million compared to $ 503 million in the first nine months of 2003. A total of $ 143 million was spent for capital expenditures (net of disposals). This resulted in a record Free Cash Flow before acquisitions for the first nine months of 2004 of $ 417 million compared to $ 374 million for the same period in 2003. Net cash used for acquisitions was $ 74 million. The Free Cash Flow after acquisitions increased by 16% to $ 343 million compared to $ 295 million last year.

Patients - Clinics – Treatments

At the end of the third quarter 2004, Fresenius Medical Care served about 123,000 patients worldwide which represents an increase of 5%. North America provided dialysis treatments for ~84,600 patients (+4%) and the International segment for ~38,400 patients (+7%).

As of September 30, 2004, the Company operated a total of 1,595 clinics worldwide (1,125 clinics/+2% in North America and 470 clinics/+7% International).

Fresenius Medical Care AG performed approximately 14.0 million treatments in the first nine months of 2004, which represents an increase of 6% year over year. North America accounted for 9.6 million treatments (+5%) and the International segment for 4.4 million (+9%).


Outlook 2004

Based on the strong performance in the first nine months of 2004 the company lifts its net income guidance for the full year 2004. After expecting a net income growth for 2004 in the mid teens the Company now expects net income growth to be in the high teens. The top-line revenue growth at constant currencies should remain in the high single digit range.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "Our operating fundamentals and our financial focus continues to translate into strong top line revenue growth and bottom line net income growth. We are particularly pleased with the results of Europe, North America and Latin America. Due to this good performance we upgrade our net income guidance for the full year 2004. In addition, we saw continued good performance in Free Cash Flow for the first nine months 2004 reaching our desired leverage ratio of debt to EBITDA at least one year early. This accomplishment provides an opportunity for increased investments in our business going forward".

Statement of earnings: see pdf-file

Video Webcast
Fresenius Medical Care will hold an press conference at its headquarters in Bad Homburg, Germany, to discuss the results of the third quarter and first nine months of 2004 on November 02, 2004 at 10 a. m. The company invites you to listen to the live video webcast of the meeting at the Company's website www.fmc-ag.com. A replay will be available shortly after the meeting.

• Sales: € 5.4 billion, + 8 % constant currency, + 3 % at actual exchange rates
• EBIT: € 628 million, + 13 % constant currency, + 6 % at actual exchange rates
• Net Income: € 125 million, + 26 % constant currency, + 19 % at actual exchange rates
• Fresenius Medical Care posts continued strong sales and earnings growth
• Continued excellent organic revenue development and improved EBIT margin at Fresenius Kabi
• Fresenius ProServe within revenue and earnings expectations
• Earnings outlook for 2004 raised

Group outlook for 2004
In the third quarter, Fresenius Medical Care and Fresenius Kabi continued to exceed their earnings targets. Revenues and earnings of Fresenius ProServe are within expectations for 2004. Based on these excellent results, Fresenius Group raises its earnings outlook for the full year 2004: Net income is expected to grow approximately 35 % in constant currency. Previously, the Company expected net income to increase at approximately 30 %. Fresenius expects 2004 sales growth in constant currency in the high single-digit range. Sales and earnings growth is expected in all business segments.

Sales
Sales in the first nine months of 2004 increased 8 % in constant currency. Organic growth was 6 %, acquisitions contributed 2 %. Currency translation effects had a negative 5 % effect on sales. At actual exchange rates sales increased 3 % to € 5,399 million (Q1-Q3 2003: € 5,254 million).

Sales in North America accounted for 48 % of Group sales followed by Europe with 39 % and Asia-Pacific with 7 %. Sales in Latin America and the remaining regions accounted for 6 % of total sales. Very strong growth rates of 14 % and 18 % in constant currency were achieved in Asia-Pacific and Latin America. Fresenius expects Asia-Pacific and Latin America to continue above-average growth in the future.

The table below lists the sales contribution of the three business segments:

Fresenius Medical Care's lower sales contribution is the result of currency translation effects.

Earnings
Strong growth rates were achieved in earnings: In constant currency, EBITDA rose 10 %. At actual exchange rates, EBITDA increased 4 % to € 857 million (Q1-Q3 2003: € 825 million). Group EBIT increased 13 % in constant currency and 6 % at actual exchange rates to € 628 million (Q1-Q3 2003: € 590 million). The EBIT margin improved from 11.2 % in the first nine months 2003 to 11.6 %.

The net interest result improved to € -156 million in the first nine months and was € 30 million below last year's level of € -186 million. This is the result of a lower debt level as well as the conversion of a portion of Fresenius Medical Care's debt from fixed to variable interest rates. Currency exchange rates also had a favorable impact.

The effective tax rate for the first nine months of 2004 was 40.3 % (Q1-Q3 2003: 39.1 %).

In the first nine months of 2004, minority interests increased to € 157 million compared to € 141 million in the first nine months of 2003. 96 % of minority interests were attributed to Fresenius Medical Care.

Net income rose 26 % in constant currency and 19 % at actual exchange rates to € 125 million (Q1-Q3 2003: € 105 million). The excellent operating performance of Fresenius Medical Care and Fresenius Kabi as well as significantly lower interest expenses contributed to the increase in net income.

Earnings per ordinary share rose to € 3.04 ( Q1-Q3 2003: € 2.55). Earnings per preference share rose to € 3.06 (Q1-Q3 2003: € 2.57). This represents an increase of 19 %.

Investments
In the first nine months of 2004, Fresenius invested € 253 million (Q1-Q3 2003: € 247 million). Of this amount € 174 million was spent on capital expenditures for property, plant and equipment and intangible assets (Q1-Q3 2003: € 180 million) and € 79 million on acquisitions (Q1-Q3 2003: € 67 million).

Europe accounted for 50 % of Group investments, North America for 40 % and Asia-Pacific, Latin America and Africa for 10 %.

Cash flow
Operating cash flow and free cash flow reached new all-time highs in the first nine months: Operating cash flow increased 3 % to € 580 million (Q1-Q3 2003: € 565 million) primarily due to the positive development of Group net income. Free cash flow before acquisitions and dividends increased 6 % to € 423 million (Q1-Q3 2003: € 399 million). Free cash flow after acquisitions and dividends rose 4 % to € 232 million (Q1-Q3 2003: € 224 million) despite higher spending for acquisitions (€ -72 million, net) and dividends (€ -119 million).

Asset and capital structure
Total assets rose 4 % to € 8,690 million (December 31, 2003: € 8,347 million) or 3 % in constant currency. Total current assets increased 10 % to € 3,023 million (December 31, 2003: € 2,744 million). This increase was due mainly to an increase in trade accounts receivable (+13 %), since receivables from the Fresenius Medical Care receivable securitization program are stated in the balance sheet starting this year following an amendment to the program.

Debt was € 3,006 million at actual rates as of September 30, 2004 (constant currency: € 2,979 million). In comparison, debt at the end of 2003 including liabilities related to the receivables securitization program was € 3,148 million (excluding securitization program: € 3,023 million).

The ratio net debt/EBITDA was 2.5 by September 30, 2004. Fresenius had originally targeted this level for 2005 and thus achieved this goal earlier than expected. This was mainly accomplished due to the excellent cash flow.

Shareholders' equity including minority interests was € 3,443 million, up 7 % from € 3,214 million on December 31, 2003. The equity ratio including minority interests was 39.6 % (December 31, 2003: 38.5 %).

Employees
Fresenius had 69,522 employees worldwide on September 30, 2004, an increase of 5 % compared to 66,264 employees at December 31, 2003.

Fresenius Biotech
Fresenius Biotech develops innovative therapies with trifunctional antibodies for the treatment of cancer as well as cell therapies for the treatment of end-stage HIV infection. In the field of polyclonal antibodies, Fresenius Biotech has successfully marketed ATG-Fresenius S for many years. ATG-Fresenius S is an immuno-suppressive agent used to suppress graft rejection following an organ transplantation.

In 2004, a phase I study using the antibody removab® to treat non-small-cell lung cancer was completed. In addition, a phase I study using removab® to treat peritoneal carcinomatosis as well as a phase I study using the antibody rexomun against breast cancer provided preliminary results on safety and tolerability. Due to the encouraging results, Fresenius Biotech is planning to launch further studies in both indications. The final reports of these two studies are planned to be published in the first half of 2005. As part of the clinical trial plan, a phase II/III study was launched to investigate the use of the removab® antibody as a therapy against malignant ascites. The final report of this study is expected in the second half of 2006.

First intermediate results of a phase I/II study reviewing the treatment of patients with end-stage HIV infection will be available in early 2005. The study is expected to show whether the mode of action functions in treating humans.

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 September 30, 2004, Fresenius Medical Care treated 123,000 patients (+5 %) in 1,595 dialysis clinics (+4 %).

• Excellent top-line and net income growth continued
• Continued strong performance of North American service business and International product business
• Company upgrades net income guidance for 2004

In the first nine months of 2004, Fresenius Medical Care achieved significant sales growth of 13 % to $ 4,588 million (Q1-Q3 2003: $ 4,075 million) or 10 % in constant currency.

Fresenius Medical Care increased sales by a strong 9 % in its key North American market which accounts for 68 % of all sales. Sales outside of North America ("international" segment) rose 20 %. In constant currency, the international segment had an impressive growth of 11 %.

Dialysis products sales at Fresenius Medical Care increased 11 % to $ 1,254 million. Dialysis services sales were up 13 % at $ 3,334 million. In the first nine months of 2004, Fresenius Medical Care performed approximately 14.0 million dialysis treatments. This is an increase of 6 % compared to the first nine months of 2003. North America accounted for 9.6 million treatments (+5 %) and the international segment for 4.4 million (+9 %).

Fresenius Medical Care grew EBIT by 14 % to $ 625 million (Q1-Q3 2003: $ 550 million). Net income at Fresenius Medical Care was $ 294 million, up 24 % from the first nine months of 2003.

Based on the strong performance in the first nine months of 2004 the company lifts its net income guidance for the full year 2004. The top-line revenue growth at constant currencies should remain in the high single digit range. After expecting a net income growth for 2004 in the mid teens the Company now expects net income growth to be in the high teens.
For further information: see Investor News Fresenius Medical Care at www.fmc-ag.com.  

Fresenius Kabi
Fresenius Kabi is a leading provider of nutrition and infusion therapy for critically and chronically ill patients in the hospital and ambulatory environment. In addition, the Company offers products in the field of infusion and transfusion technology.

• Profitability improvement continued
• Organic sales growth reaches 5 %
• Earnings outlook raised
• Live webcast of Capital Market Day on December 8, 2004

Sales at Fresenius Kabi increased 2 % to € 1,105 million (Q1-Q3 2003: € 1,082 million). Fresenius Kabi achieved good overall organic growth of 5 %. Asia-Pacific and Latin America performed exceptionally well, achieving organic growth of 20 % and 12 % respectively. Cost-cutting in the health care sector and price pressure led to a 6 % decline in Germany. Excluding Germany, Fresenius Kabi achieved organic revenue growth of 6 % in Europe. Currency exchange rates had in effect of -1% on sales for the first nine months. Divestments decreased sales by 2 %.

Fresenius Kabi significantly increased its earnings. EBIT increased by 21 % in the first nine months of 2004 to € 129 million (Q1-Q3 2003: € 107 million). The EBIT margin in the first nine months of 2004 was 11.7 %, an increase of 180 basis points from 9.9 % in the first nine months of 2003.

Based on these positive results, Fresenius Kabi raised its earnings guidance for the full-year: The EBIT margin is now expected to increase to more than 11.5 %. Fresenius Kabi expects constant-currency sales to grow in the mid-single digits.

A Capital Market Day will be held on December 8, 2004 where the Management Board of Fresenius Kabi will discuss in detail the products, markets, strategy and growth prospects of the company. The event will begin at 10am and will be broadcasted live over the Internet on this website.

Fresenius ProServe
Fresenius ProServe offers services to the international health care sector. The health care business includes hospital management as well as the planning and construction of hospitals. The pharma industry business focuses on the planning and construction of pharmaceutical plants and medical technical production sites.

• Organic sales growth of 10 %
• Order intake up 18 %
• Agreement reached on the sale of nursing care business
• Business development in line with full-year outlook

Sales in the first nine months of 2004 rose to € 581 million at Fresenius ProServe. This is an increase of 10 % that was achieved solely through organic growth (Q1-Q3 2003: € 526 million). Sales growth came primarily from the positive development of the health care project business.

Order intake increased significantly by 18% in the first nine months to € 199 million (Q1-Q3 2003: € 169 million). This increase grew out of projects in the health care business. The order backlog was € 435 million (December 31, 2003: € 435 million).

Fresenius ProServe's EBIT in the first nine months of 2004 was € 3 million (Q1-Q3 2003: € 5 million). This figure includes € 8 million before tax of one-time expenses. Excluding the one-time expenses, EBIT was € 11 million in the first nine months. The 80 % bed utilization rate in the first nine months of 2004 at the German hospital business of Wittgensteiner Kliniken was at previous year's level.

The sales of its subsidiary hospitalia care is a further step of Fresenius ProServe to focus on its core activities, Wittgensteiner Kliniken, VAMED and Pharmaplan. hospitalia care currently operates and manages 23 nursing care facilities in Germany. The sale of hospitalia care completes the strategic reorientation of the Fresenius ProServe Group.

Fresenius ProServe confirms its full-year outlook and expects 2004 EBIT of between € 15 million and € 20 million before one-time expenses. One-time expenses are expected to be in the range of € 8 million. Sales at Fresenius ProServe are expected to increase about 10 % in 2004.

Video Webcast
As part of the earnings announcement for the first nine months of 2004, a press conference will be held at the Fresenius headquarters in Bad Homburg on November 2, 2004 at 10 a.m. CET. You are cordially invited to follow the conference in a live broadcast on this website . Following the meeting, a recording of the conference will be available as video-on-demand.