Bad Homburg, Germany -- March 05, 2002 -- Fresenius Medical Care AG (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's largest provider of dialysis products and services, today announced earnings after taxes of $ 245 million (+15%) for the year ended December 31, 2001 (before the special charge/expenses). Including the previously announced special charge for 1996 merger-related legal matters of $ 258 million ($ 177 million after tax) and related prior quarter expenses of $ 7 million ($ 4 million after tax) net income for 2001 was $ 63 million. The Company has announced this special charge on February 13, 2002 and confirms its belief that this financially resolves the remaining merger-related legal matters pending at this time.

Net revenues for 2001 increased to $ 4,859 million from $ 4,201 million, an increase of 16% (17% constant currency). Organic sales growth in 2001 was 9%, whereas 8% sales growth came from acquisitions, mainly based on the acquisition of Everest Healthcare Services Corporation.

Earnings before interest and taxes (EBIT) for 2001 increased 4% to $ 644 million (before the special charge/expenses) from $ 621 million last year. EBIT including the special charge/expenses was $ 379 million. This resulted in an operating margin (before special charge/expenses) of 13.3% compared to 14.8% in 2000. The operating margin was mainly influenced by currency (0.3%), higher bad debt expenses (0.3%) and strategic initiatives including the roll-out of single-use dialyzers in FMC's North American clinics (0.4%).

Earnings per share (EPS) were up 7% to $ 2.53 for 2001 (before special charge/expenses), compared to an EPS of $ 2.37 for 2000. Including the special charge/expenses EPS were $ 0.65 per share. The weighted average number of shares outstanding during 2001 was 96 million compared with 89 million in 2000. Earnings per American Depositary Share (ADS) for 2001 were $ 0.84 per ADS versus earnings of $ 0.79 per ADS for 2000. Including the special charge/expenses the earnings per ADS were $ 0.22 per share. Three ADS's are equivalent to one share.

Revenues in North America, which accounted for 74% of total revenue, increased 17% to $ 3,602 million, with dialysis care increasing 20% to $ 3,131 million and dialysis products up 5% to $ 748 million (incl. internal sales of $ 277 million). Excluding internal sales dialysis products revenues were flat compared to 2000.

International revenues rose 12% to $ 1,257 million compared to last year. In constant currency International revenues advanced 18% compared to 2000. International dialysis care revenues, which increased by 31% to $ 426 million on a constant currency basis, once again reflected the successful expansion of the International dialysis care business in key areas. The 14% constant currency growth rate in International dialysis product revenues (incl. internal sales) is in excess of the average growth rate in these markets.

As of December 31, 2001, the Company operated a total of 1,400 clinics worldwide, of which 370 clinics were outside of North America. In the year 2001, 88 clinics were added via acquisitions and more than 70 new clinics (de novo) were opened by the Company. In 2001, Fresenius Medical Care AG performed approximately 15.2 million dialysis treatments, which represents an increase of 18% over last year. North America accounted for 11.1 million treatments (+16%) and the International segment for 4.1 million treatments (+24%).

The Company generated a record $ 424 million of cash from operations in 2001 being up 8% from the year 2000. A total $ 251 million (net of disposals) was spent for capital expenditures during 2001. Free Cash Flow (cash from operations less capital expenditures) for 2001 reached $ 173 million supported by a record Free Cash Flow in the fourth quarter 2001 of $ 83 million (+13%). The Company has seen a very strong cash collection in the fourth quarter of 2001 with days of sales outstanding down by one day for the full year 2001. Acquisitions totaled $ 461 million of which $ 217 million was paid in cash.

Consistent with prior years the Company will continue to follow an earnings driven dividend policy. The dividend proposal will be calculated on the earnings before the special charge for 1996 merger-related legal matters. Shareholders can, for the fifth year in a row, expect increasing dividends for the year 2001. The Managing Board will propose to the Supervisory Board a dividend of € 0.85 per ordinary share (2000: € 0.78) and € 0.91 per preference share (2000: € 0.84) for shareholder approval at the annual general meeting on May 22, 2002.

Fourth Quarter Results
Net revenues for the fourth quarter of 2001 increased 17% to $ 1,270 million (18% constant currency) from $ 1,082 million. This development was mainly based on a strong same store dialysis care revenue growth of 10% and a same store treatment growth of 9% in the fourth quarter 2001.

Earnings before interest and taxes (EBIT) in the fourth quarter of 2001 decreased 1% to $ 152 million (before special charge) from $ 153 million in the same period last year.

Fresenius Medical Care AG achieved an operating margin (before special charge) of 12.0% in the fourth quarter of 2001. On a comparable basis the EBIT margin in the fourth quarter 2000 was 14.1%. The difference of 2.1% is mainly due to the Company's investments in single-use dialyzers in FMC's North American clinics (0.6%), higher bad debt expenses (0.4%), higher personnel expenses (0.2%) and higher expenses for the certification of de novo clinics (0.2%).
Earnings per share (EPS) were $ 0.62 for the fourth quarter of 2001, down 2% compared with EPS of $ 0.63 for the fourth quarter of 2000. Including the special charge EPS were minus $ 1.21 per share for the fourth quarter of 2001. The weighted average number of shares outstanding during the fourth quarter of 2001 was approximately 96.1 million compared with 93.8 million in the fourth quarter 2000. Earnings per American Depository Share (ADS) before special charge for the fourth quarter were $ 0.21 versus US$ 0.21 per ADS for the same period in 2000. Three ADS's are equivalent to one share.

The Company generated $ 165 million in cash from operations in the fourth quarter 2001, representing an increase of 6% over the fourth quarter of 2000. As a result, the company's Free Cash Flow was particularly strong in the fourth quarter of 2001 with $ 83 million. Capital expenditures in the fourth quarter 2001 were $ 82 million, on the same level as in the fourth quarter of 2000.

Revenues in North America, which accounted for 72% of total revenue, increased 17% to $ 918 million, with dialysis care increasing at 20% and dialysis products revenues up 8% (including internal sales). The introduction of the UltraCare Ô therapy in North America is on target. The core element of UltraCare Ô is the introduction of single-use dialyzers in the US. With this new therapy FMC is setting new standards for tangibly better hemodialysis outcomes in the United States.

International revenues rose 20% to $ 352 million compared to the fourth quarter of last year. On a currency-adjusted basis, International revenues advanced 21% compared to the fourth quarter of 2000. Growth in International dialysis care revenues, which increased by 26% (currency-adjusted), once again reflected the successful expansion of the International dialysis care business in key areas. In the fourth quarter 2001, the Company performed around 1.1 million dialysis treatments. Patient growth was 22% year over year. Additionally, the Company expanded its European Clinical Database where data of more than 13,000 patients are stored. In the UK and in Spain the conversion of patients to the new FX-class dialyzer is completed. The targeted conversion of patients in FMC centers to the FX-class filter at this point in time was completed.

In Argentina Fresenius Medical Care achieved sales growth of 19% and an earnings after tax growth of 30% in the fiscal year 2001. Judging from today's situation the Company does not expect impairment issues in the group financial statements relating to its investment in Argentina.

Guidance 2002 / 2003
Fresenius Medical Care AG expects an organic revenue growth for 2002 of around 6%. This includes the recent adverse currency impact in Argentina. Excluding the devaluation in Argentina revenues are expected to grow by about 8%. The Company expects to report earnings after tax (EAT) of more than $ 350 million based on the new US-GAAP goodwill accounting rules in 2002. This expected result includes the anticipated impact of the Peso devaluation in Argentina and the expenses related to the roll-out of single-use dialyzers in the U.S. Not included are extraordinary expenses of approximately $ 12 million after taxes related to the early redemption of the 9% Trust Preferred Securities in February 2002.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented "We successfully completed a challenging year. We achieved a record cash flow from operations of $ 424 million and made strategic investments that allow us to build on our fundamentally strong position in the market place as well as, we believe, improving the quality of patient care. We put behind us financially the legal issues remaining from the 1996 NMC acquisition. During 2002 our major focus will be directed towards returning our North American margin to pre 2001 levels. We see opportunities of growth in North America in the renal business beyond the continued patient growth in the area of disease state management for which we are well prepared and positioned. In the International region we continued to expand our dialysis care network of clinics, introduced new innovative products, both in the dialysis machine and dialyzer membrane technologies. Furthermore, we are increasing dialyzer manufacturing capacity by 200% at our Ogden, Utah plant and opened a plant in Buzen, Japan. The global same-store patient care revenues accelerated to 10% and the same store treatment growth was 7%, which clearly demonstrates the strength of our renal business. We made solid progress in our global leadership position and we took clear measures positioning us as the world's leading renal therapy company."

With effect from 1 January 2003, the Fresenius healthcare group will rebundle its activities: The four divisions of the business segment Fresenius HemoCare are being reallocated within the Fresenius group. As a consequence, the Fresenius group will be divided into three independent business segments - Fresenius Medical Care, Fresenius Kabi and Fresenius ProServe.

This is a decisive step to increase the efficiency of the whole group: The individual business segments will be strengthened as a result of this measure; they will operate more effectively and be better able to meet the needs of the market. Also, the existing experience and knowledge can be better leveraged.

In detail, the following changes will be implemented:
Due to their technological similarities, the Infusion Technology and the Transfusion Technology Divisions of Fresenius HemoCare will be gathered under one uniform management and assigned to Fresenius Kabi. The steadily growing link of products to systems offered to hospitals, including infusion solutions and applications systems, will generate clear market advantages in the future, particularly in this field, and will open up new opportunities for growth. Through the new structure, the infusion and transfusion technology products will be able to be marketed more intensively in future via Fresenius Kabi's international distribution network.

It is intended that the Adsorber Technology Division of Fresenius HemoCare will be transferred to Fresenius Medical Care. The combination of medical and technological know-how in the field of extracorporeal blood treatment will generate further therapy impulses. At the same time, this measure is in line with Fresenius Medical Care's strategy to further strengthen extracorporeal therapies outside dialysis, both in the USA and internationally. Through this combination, Fresenius Medical Care's worldwide network of dialysis clinics can be utilized for adsorber treatment - the extracorporeal removal of pathogenic substances from the blood - e.g. for patients suffering from rheumatoid arthritis.

The Immune Therapy Division of Fresenius HemoCare concentrates on the development of products and procedures for immune and cell therapies. Due to the importance of the related research and development projects, this division requires intensive management attention and control. In order to foster developments in an even more targeted way, Immune Therapy will, therefore, be allocated directly to Fresenius AG, under the responsibility of the Chairman of the Managing Board.

Fresenius HemoCare generated sales of € 169 million in the first nine months of the year 2002, of which 82% were achieved by the Infusion Technology and Transfusion Technology Divisions, 10% by the Adsorber Technology Division and 8% by Immune Therapy.
EBIT amounted to € 7 million in the first three quarters of 2002.

As of the first quarter of 2003, the financial reporting system of the Fresenius Group will be based on this new structure.

The Company will stay within the therefore accrued Q4 2001 reserve

Fresenius Medical Care AG ("FMC") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's largest provider of Dialysis Products and Services, today announced that it has reached an agreement in principle for the settlement of all the fraudulent conveyance claims against it and other claims related to the Company that arise out of the bankruptcy of W.R. Grace & Co.

Under the terms of the agreement in principle, fraudulent conveyance and other claims raised on behalf of asbestos claimants will be dismissed with prejudice and the Company will receive protection against all existing and potential future asbestos-related claims upon confirmation of the W.R. Grace & Co. bankruptcy reorganization plan. The Company will retain responsibility to resolve the outstanding pre-merger income taxes of the W.R. Grace & Co. consolidated tax group and has agreed to pay $15 million to the W.R. Grace bankruptcy estate upon plan confirmatioa. No admission of liability has been or will be made. The total tax and settlement payments pursuant to the terms of the agreement in principle are not expected to exceed the amount reserved for tax payments by the Company in the fourth quarter 20011). A definitive settlement agreement is expected before the end of the year 2002.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are clearly pleased to be able to reach agreement on financial terms that are well within our existing reserves for pre-merger liabilities and that provide for a prompt, full and final resolution of these matters. Although we remain confident that there was no fraudulent conveyance in our 1996 transaction, it was in the best interests of the Company and its shareholders to put any asbestos-related questions to rest permanently. This settlement avoids the costs of expensive and distracting litigation that could have taken years to resolve, and that would have drawn our attention and energy away from our focus to accomplish the financial objectives of our US strategic plans and providing outstanding medical care to our thousands of patients worldwide, first rate clinical support to our affiliated physicians and clinicians and the highest clinical outcomes for health plans."

The British government wants to make use of external know-how in the management of its struggling state-owned hospitals in the future. A governmental register of experts chose 8 private sector hospital management organisations from a multitude of applicants after an eight-month test process, which will be able to participate in tenders for the management franchises as of January 2003.The only German company to be one of the three registered companies from abroad is hospitalia activHealth gmbH, Oberursel, the Healthcare Company Fresenius' subsidiary specialising in international hospital management.

As published by the British Government on Thursday this week Health Secretary Alan Milburn said: "The Register of Experts will enable the best managers from outside the NHS to join the best managers within the NHS in turning around struggling hospitals and raising standards for patients."

hospitalia activHealth operates hospitals abroad and offers professional management and services to owners of health facilities worldwide. The company provides state-of-the-art hospital management. Its core parameters are consistent quality management, process-optimised teams, international supply-chain management, a comprehensive medical network and patient-focused care.

Fresenius Medical Care AG & Co. KGaA (the "Company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced the signing of a purchase agreement to acquire International Dialysis Centers ("IDC"), Euromedic International's ("Euromedic") dialysis service business. Euromedic has decided to prioritize its investments in the diagnostics and cancer treatment fields. Fresenius Medical Care is taking advantage of this opportunity to expand its activities in the dialysis care market, especially in Eastern Europe, where IDC is the market leader.

The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the first half of 2011. On completion, the acquired operations will add approximately $180 million in annual revenue and are expected to be accretive to earnings in the first year after closing of the transaction. The purchase price will be €485 million. The transaction will be financed initially from cash flow from operations and available borrowing capacity. After closing, Fresenius Medical Care expects to refinance the acquisition on a long-term basis.

IDC currently treats over 8,200 hemodialysis patients predominantly in Central and Eastern Europe and operates a total of 70 clinics in nine countries. Fresenius Medical Care, the world leader in renal therapy, currently serves more than 210,000 patients globally and more than 17,000 patients in Eastern Europe.

Ben Lipps, chief executive officer of Fresenius Medical Care, said: "Eastern Europe is a key component of our overall growth strategy, and we are convinced that Euromedic's clinic network will be an excellent fit with those of Fresenius Medical Care. Bringing together the experienced teams of both companies and our focus on high-quality patient care will give us a unique opportunity to meet the growing needs of the public sector in these fast-growing markets."

Richard di Benedetto, chief executive officer of Euromedic, said: "We are very proud of what we have built up in the dialysis services space. We strongly believe that Fresenius Medical Care will be an excellent home for IDC and will enable IDC to build on its current strength across Eastern Europe and to continue its longstanding track record of success."

Fresenius Medical Care AG & Co. KGaA ("the Company" or "Fresenius Medical Care"; Frankfurt Stock Exchange: FME / New York Stock Exchange: FMS), the world's largest provider of dialysis products and services, today announced a cooperation agreement with the public health authorities in the Murcia region of Spain for the country's first comprehensive dialysis care and performance-oriented reimbursement model. Under this agreement, Fresenius Medical Care will provide dialysis therapy to approximately 200 renal patients in the region. The contract will be effective from mid-2011.

Similar to the system introduced in Portugal three years ago, reimbursement will be converted to an all-inclusive "bundled" rate that is tied to Fresenius Medical Care's quality performance. The Company currently provides dialysis treatment and related products to patients in the region of Murcia on a "fee-for-service" basis.

Dr. Emanuele Gatti, chief executive officer for Europe, Latin America, Middle East and Africa as well as global chief strategist of Fresenius Medical Care said: "As a vertically integrated dialysis company with longstanding experience, we are the right partner for successful, long-term cooperation with public health authorities such as those in Murcia and other payors. Together we can make a lasting improvement in the quality of dialysis patients' lives while helping ease the current strain on budgets by making health care spending more efficient."

Fresenius Medical Care is the largest private dialysis provider in Spain, with annual revenues of approximately $270 million from patient care and dialysis products. Currently, the Company provides dialysis treatment to more than 5,500 patients in 64 dialysis clinics. According to the Spanish Society of Nephrology, about 1,100 patients per 1 million individuals need renal replacement therapy in Spain in the form of dialysis or transplantation to survive. The Murcia region, located on the Mediterranean coast in the southeast, is one of the Company's key markets on the Iberian Peninsula. The region is one of the country's 17 autonomous communities. In Spain, regional governments are responsible for the administration of health, social and other services.

Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, today announced its intention to sell US$500 million of senior unsecured notes due 2021 issued by Fresenius Medical Care US Finance, Inc. and €300 million of senior unsecured notes due 2021 issued by FMC Finance VII S.A. (together with the US$ senior notes "the senior notes"). Both issuers are wholly owned subsidiaries of the company.

The senior notes will be guaranteed on a senior basis jointly and severally by the company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH.

The senior notes will be offered through a private placement directed to institutional investors. There will be no public offering of the senior notes. Proceeds from the offering will be used to repay indebtedness, for acquisitions including the company's recently announced acquisition of Euromedic's dialysis service business and for general corporate purposes to support the renal products and services business.

The proposed offering will not be registered under the Securities Act of 1933. The senior notes will be offered in the United States to "qualified institutional buyers" pursuant to the exemption from registration under Rule 144A of the Securities Act, and the offering will be made in an "offshore transaction" pursuant to Regulation S under the Securities Act.

Fresenius Biotech today announced a Removab® distribution agreement with Swedish Orphan Biovitrum (Sobi). Under the seven-year agreement, Sobi will distribute the trifunctional antibody Removab® exclusively in 15 European countries. The markets covered by the agreement include Bulgaria, the Czech Republic, Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Poland, Romania, Slovakia, Slovenia and Sweden. Removab® was granted marketing authorization by the European Commission in April 2009 for the treatment of malignant ascites associated with cancer and so far has been launched in Germany, Austria and France.

"The agreement with Sobi is part of our strategy to complement our own marketing and sales activities with strong partnerships in additional regions. More patients now will be able to benefit from Removab®," said Christian Schetter, CEO of Fresenius Biotech. "Removab® is an innovative product that holds great value for patients with severe medical needs. We are looking forward to the Fresenius Biotech partnership and the additional growth potential Removab® will provide for our business," said Kennet Rooth, CEO of Sobi.

About Removab® (catumaxomab)
Removab® is a trademark registered by Fresenius Biotech GmbH. It is the first drug worldwide with a regulatory label for the treatment of malignant ascites. Removab® is a trifunctional antibody licensed from TRION Pharma GmbH. The therapeutic objective of Removab® is to generate a strong immune reaction against cancer cells, resulting in their elimination.

EU approval is based on results of a large-scale international phase II/III pivotal study which demonstrated a statistically significant fourfold increase in puncture-free survival over a therapy with puncture alone. Removab® effectively destroys cancer cells in the peritoneal cavity and therefore attacks the primary cause of ascites formation. In addition, the results of the study indicate a positive impact on overall survival.

Removab® is approved for the treatment of malignant ascites in patients with EpCAM (Epithelial Cell Adhesion Molecule)-positive carcinomas, where standard therapy is not available or no longer feasible.

EpCAM is a tumor-associated antigen expressed on the vast majority of carcinomas (epithelial tumors). Furthermore, the majority of carcinoma-induced malignant ascites contain EpCAM-positive tumor cells. In healthy tissue, EpCAM is not accessible to binding, which makes it an attractive antigen for tumor-specific targeting.

About malignant ascites
Malignant ascites can be caused by various carcinomas. It is most common in ovarian, pancreatic and gastric cancers, with an incidence of 20 to 50 percent of all cases. Abdominal spread of cancer cells leads to an accumulation of fluid in the abdominal cavity and is associated with a poor prognosis. Malignant ascites develops late in the course of cancer disease and has a strong impact on the patient's quality of life. The most common treatment of malignant ascites is puncture (paracentesis), which must be performed repeatedly and can lead to complications such as infection and fluid or protein deprivation.

Fresenius Medical Care AG & Co. KGaA ("the company" or "Fresenius Medical Care"), the world's largest provider of dialysis products and services, today announced the pricing of US$-denominated and €-denominated senior unsecured notes (together "the senior notes") in the principal amounts of US$650 million and €300 million, respectively, both due 2021. The principal amount of the US$ senior notes was increased from the amount initially offered of US$500 million.

The coupon for the US$ senior notes will be 5.75 %. With a price of 99.06 % at issuance, the yield to maturity will be 5.875 %. The coupon for the € senior notes will be 5.25 %. The € senior notes were issued at par. Net proceeds amounting to approximately US$1,033 million from the offering will be used to repay indebtedness, for acquisitions including the company's recently announced acquisition of Euromedic's dialysis service business and for general corporate purposes to support the renal products and services business.

Michael Brosnan, chief financial officer of the company, commented: "We are pleased to have successfully completed these offerings. This means a further improvement of our solid funding structure. And it also enhances our flexibility for further pursuing our strategy of sustainable growth."

The € senior notes were offered by FMC Finance VII S.A., and the US$ senior notes were offered by Fresenius Medical Care US Finance, Inc., both wholly owned subsidiaries of the company. The senior notes will be guaranteed on a senior basis jointly and severally by the company, Fresenius Medical Care Holdings, Inc. and Fresenius Medical Care Deutschland GmbH. The senior notes were not registered under the Securities Act of 1933 as amended, but were offered to "qualified institutional buyers" in the United States pursuant to the exemption from registration provided by Rule 144A under the Securities Act and in an "offshore transaction" pursuant to Regulation S under the Securities Act. The senior notes may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements.

The change of Fresenius SE's legal form into a KGaA* in combination with the conversion of all preference shares into ordinary shares is expected to be registered with the commercial register on January 28, 2011 and will thereby become effective. The ordinary shares of Fresenius SE & Co. KGaA are scheduled to commence trading on January 31, 2011.

With registration of the resolutions of the 2010 annual general meeting, all voting ordinary shares in Fresenius SE will become voting ordinary shares in Fresenius SE & Co. KGaA. Simultaneously, all non-voting preference shares in Fresenius SE will be mandatorily converted into voting ordinary shares in Fresenius SE & Co. KGaA. The Company's share capital will remain unchanged.

Delisting of Fresenius SE shares is scheduled for January 28, 2011. Stock exchange regulations require trading to cease mid-morning until market close. All outstanding orders will expire at that time. After market close, all ordinary and preference shares of Fresenius SE are expected to be converted into ordinary shares of Fresenius SE & Co. KGaA. The listing application comprises 128,250,090 ordinary shares. 34,200,000 ordinary shares held by Else Kröner-Fresenius-Foundation will remain un-listed.

The ordinary shares of Fresenius SE & Co. KGaA will retain the ISIN DE0005785604 / Sec ID no. 578560 of the current Fresenius SE shares. The ticker symbols FRE GR (Bloomberg) and FREG.DE (Reuters) are expected to remain unchanged.

*Kommanditgesellschaft auf Aktien - partnership limited by shares