The results in the year 2002 are based on the new accounting standards on Goodwill and Other Intangible Assets (FAS 142) which came into effect January 1, 2002. In order to facilitate a year-over-year comparison, goodwill adjusted key figures for the first nine months and the third quarter 2001 are provided in the appendix.

Bad Homburg, Germany -- October 29, 2002 -- 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 the results for the third quarter and the first nine months of 2002.

OPERATIONS
Third Quarter 2002:
Fresenius Medical Care AG reports a 6% increase in net income after minorities to $ 70 million for the third quarter 2002.

Total revenue for the third quarter 2002 increased 5% (6% at constant currency) to $ 1,285 million. Same store revenue growth at constant exchange rates was 3.4%. Dialysis Care revenue grew by 4% to $ 942 million (+7% at constant currency) in the third quarter of 2002. External Dialysis Product revenue increased by 7% to $ 344 million (+3% at constant currency) in the same period.

North American revenue rose 3% to $ 947 million, compared to $ 915 million in the same period last year. Dialysis Care revenue in the US increased by 5% to $ 834 million. Same store treatment growth was 4%. North American Dialysis Product revenue, including sales to company-owned clinics, increased 1% to $ 192 million. Product sales to the available external market grew by 4%.

International revenue was $ 338 million, up 11 % adjusted for currency. Dialysis Care revenue reached $ 108 million in the third quarter 2002 (+18% currency adjusted). Dialysis Products revenue, including sales to company-owned dialysis clinics, increased 13% to $ 252 million (8% currency adjusted).

Earnings before interest and taxes (EBIT) increased to $ 167 million resulting in an operating margin of 13.0%. The operating margin remained within the targeted range for the second half of 2002 as the Company completes its 2002 rollout of the UltraCare™ dialysis treatment concept, including single-use dialyzers, in North America.

Earnings per share (EPS) in the third quarter 2002 rose 5% to $ 0.72 per ordinary share ($ 0.24 per ADS), compared to $ 0.69 ($ 0.23 per ADS) in the third quarter of 2001. The weighted average number of shares outstanding during the third quarter of 2002 was approximately 96.2 million, compared to 96.1 million in the same period of 2001.

In the third quarter of 2002, the Company generated $ 151 million in cash from operations, an increase of 34% from the third quarter of 2001. A total of $ 67 million (net of disposals) was spent for capital expenditures, resulting in Free Cash Flow before acquisitions for the third quarter 2002 of $ 84 million. A total of $ 33 million in cash was spent for acquisitions. Free Cash Flow after acquisitions was $ 51 million. In the third quarter of 2001, Free Cash Flow after acquisitions was $ 33 million.

First Nine Months 2002:
For a complete overview of the first nine months 2002 please refer to the appendix.

In the first nine months of 2002, income before extraordinary item was $ 219 million, up 19% from the same period in 2001. Net revenue was $ 3.73 billion, up 4% from the nine months of 2001. Adjusted for currency, net revenue rose 6% from January to September of 2002 compared to 2001. Earnings before interest and taxes (EBIT)increased 4% to $ 511 million resulting in an operating margin of 13.7%. In the nine months of 2002, earnings per ordinary share before extraordinary item rose 19% to $ 2.27. Earnings per ordinary ADS for the first nine months of 2002 were $ 0.76.

Fresenius Medical Care generated $ 395 million in cash from operations during the first nine months of 2002, an increase of 53% from the first nine months of 2001. Net cash used for acquisitions was $ 73 million and capital expenditures (net of disposals) were $ 157 million. Free Cash Flow for the first nine months of 2002 was $ 238 million compared to $ 90 million in the first nine months of 2001. Free Cash Flow for the first nine months already exceeded the full year target set by the Company. This exceptional performance is primarily driven by strong improvements in working capital management, in particular accounts receivable collection, and by moderate capital expenditure.
As of September 30, 2002, the Company operated a total of 1,450 clinics worldwide [1,070 clinics (+5%) in North America and 380 clinics (+7%) International]. Fresenius Medical Care AG performed approximately 12.1 million treatments, which represents an increase of 8% year over year. North America accounted for 8.6 million treatments (+4%) and the International segment for 3.5 million (+17%). At the end of the third quarter 2002, Fresenius Medical Care served about 110,100 patients worldwide which represents an increase of 6%. North America accounted for ~78,700 patients (+3%) and the International segment for ~31,400 patients (+14%).

UltraCare™ Medical Outcomes Update
The Company has completed a one-year preliminary analysis of medical outcomes related to its UltraCare™ dialysis treatment concept, including the Optiflux-dialyzer for single-use. Comparing 4,810 UltraCare™ patients from the initial program implementation with 27,568 patients using standard therapy the company-internal data indicates significantly better medical outcomes for UltraCare™ patients.

On a fully lab and case mix adjusted basis, relative risk of mortality was reduced to 75% of the standard therapy population. This very encouraging preliminary data is in line with the Company's experience outside of the USA. The Company plans further studies and publications on the benefits of its UltraCare™ concept based on its comprehensive North American treatment database.

LEGAL UPDATE
Developments during the third quarter in the 1996 merger-related legal issues have not changed the Company's expectation and the Company continues to consider the charge taken in the fourth quarter of 2001 to be adequate. The Company's legal position on fraudulent conveyance claims relating to the 1996 merger with National Medical Care remains unchanged and the Company continues to believe its position is strong. The Company continues to look forward to an expeditious resolution of the case. The case remains stayed, however, as the court determines the proper plaintiffs to bring the legal action in light of a September appellate court ruling in an unrelated case.

OUTLOOK 2002 / 2003
The Company expects to operate within the targeted operating margin range of 13-14% for the remainder of 2002 and expects the income before extraordinary item to be close to its 2002 target of $300 million. Having completed the 2002 UltraCare™ concept rollout in North America, the Company will continue to focus on cost improvements and same-store treatment growth in its North American dialysis care business. For the year 2003, the Company expects constant currency revenue growth before acquisitions in the mid single digits and net income growth in the high single digit to low double digits range.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "We are pleased with the record Free Cash Flow for the first nine months. We are pleased that we do not face an impairment of our Latin America goodwill at this time. With respect to North America our strategy is to develop and implement a unique dialysis therapy based on Fresenius Medical Care's technology. Financial success with this strategy is expected with the demonstrated better medical outcomes and our clear path to cost neutrality. With the United States net patient growth rate currently in the range of 4-5%, this strategy provides for growth opportunities above market and new opportunities for future margin expansion. We are also positioned to succeed in a reimbursement environment that allows the provider to share in the healthcare savings achieved."

Fresenius Medical Care AG is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,100,000 individuals worldwide. Through its network of approximately 1,450 dialysis clinics in North America, Europe, Latin America and Asia-Pacific, Fresenius Medical Care provides Dialysis Treatment to approximately 110,100 patients around the globe. Fresenius Medical Care is also the world's leading provider of Dialysis Products such as hemodialysis machines, dialyzers and related disposable products. For more information about Fresenius Medical Care, visit the Company's website at www.fmc-ag.com.

• Sales: + 3% to € 5.55 billion
• currency-adjusted: + 8%
• EBIT: + 7% to € 617 million
• Net income: + 31% to € 85 million

The Fresenius health care group increased sales by 3% to € 5.552 billion in the first nine months of 2002. Changes in exchange rates had a negative impact on currency conversion. Calculated at the exchange rates of the previous year, the sales increase amounted to 8% and is thus in line with the company's targets for the full year 2002. Net income of the Fresenius Group increased by 31% to € 85 million. The development of earnings was favourably influenced by the change in the US GAAP accounting rules effective January 1, 2002 which means that goodwill is no longer amortized.*

Sales
Fresenius increased consolidated sales to € 5.552 million (+ 3%) in the first nine months of 2002. The continued strong organic growth of 6% once again
confirms the good position of Fresenius in the markets. Acquisitions increased growth by 3 percentage points. The changes in exchange rates, especially the devaluation of the Peso in Argentina and the weakening of the US dollar compared to the euro, had a negative impact of -5 percentage points in the currency conversion. Disinvestments had an effect of -1 percentage point.

In Europe, the Group achieved a sales growth of 14%. Sales also developed positively in the Asia-Pacific region, with a plus of 15%. The devaluation of the Argentinean peso and the Brazilian real compared to the dollar was the main cause of the 32% drop in sales in Latin America. Calculated at constant exchange rates, the Fresenius Group achieved a good sales growth of 6% in Latin America despite the difficult economic situation. Currency conversion effects also had an impact on North American sales which were at the same level as the previous year. Currency adjusted, the increase in North America amounted to 3%.

The contributions of the business segments to total sales changed compared to the previous year in favour of Fresenius ProServe as a result of the acquisition of Wittgensteiner Kliniken AG:

Earnings
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to € 874 million and was thus 7% (currency-adjusted: 3%) lower than the previous year's figure of € 940 million. EBIT increased by 7% to € 617 million (1st-3rd quarters 2001: € 578 million). The EBIT margin amounted to 11.1% (previous year: 10.8%). The impact from the US GAAP FAS rule 142, whereby goodwill is no longer amortized, amounted to € 116 million. If this effect is not taken into account, EBIT would have been 11% lower than the previous year due to the business development of Fresenius Medical Care (see table on page 10 with adjusted figures for the previous year).

Net interest expense of the Group amounted to € -209 million and was thus just below the level of the previous year (€ -210 million). The tax ratio dropped from 45.7% in the first nine months of 2001 to 38.5% in the period under report, largely due to goodwill not being amortized. The share of profits allocated to minority interests increased to € 161 million following € 134 million in the 1st-3rd quarters 2001.

Net income of the Group amounted to € 85 million in the first nine months of 2002, an increase of 31% (1st-3rd quarters 2001: € 65 million).

The change in exchange rates, in particular of the Latin American currencies and the US dollar, had a negative impact on the earnings of the Group. On the basis of constant exchange rates, i.e. calculated at the exchange rates of the previous year, EBIT rose by 11% and net income by 38%.

Earnings per share amounted to € 2.07 (previous year: € 1.61), a plus of 29%.

Capital expenditure and acquisitions
Compared to the previous year which was marked by strong acquisition activities (Everest Healthcare Corp. and Wittgensteiner Kliniken AG), Fresenius substantially reduced investments in the period under report to € 393 million (1st-3rd quarters 2001: € 1,042 million). Tangible assets amounting to € 283 million in the first nine months of 2002 were the same as previous year. However, the amount spent on acquisitions decreased to € 110 million compared to € 759 million in the same period of the previous year. 79% of this figure was invested in the purchase of new dialysis clinics.

Investments in tangible assets concerned mainly the equipping of dialysis clinics, the expansion of production capacities and the optimisation of the production processes.

Cash flow
The operating cash flow of the Fresenius Group amounted to € 507 million in the first nine months of 2002 (previous year: € 294 million). The strong increase resulted from the change in working capital mainly due to improved management of accounts receivables. The operating cash flow fully covered financing requirements for investment activities before acquisitions and dividends totalling € 235 million. The free cash flow before acquisitions and dividends amounted to € 272 million and was substantially higher than the previous year's figure of € 44 million. The free cash flow of € 72 million after acquisitions and dividends was positive.

Asset and equity structure
The balance sheet total dropped compared to 31.12.2001 to € 9,191 million (31.12.2001: € 9,867 million; - 7%). This reduction is largely a result of the change in exchange rates. The equity ratio including minority interests amounted to 37% and was thus at the same level as the previous year.

Bank loans, Eurobonds, commercial papers and trust preferred securities dropped from € 3,737 million on 31.12.2001 to € 3,483 million on 30.9.2002. The reduction compared to the end of 2001 results from the conversion into euros of the financial liabilities reported in US dollars as well as from the positive free cash flow after acquisitions and dividends. Net debt dropped on 30.9.2002 to € 3,307 million (31.12.2001: € 3,556 million).

The business segments
Fresenius Medical Care
Fresenius Medical Care has further expanded its leading global position. Altogether, around 110.100 dialysis patients (+ 6%) were cared for in 1,450 clinics on 30.9.2002.
Sales rose by 4% to US$ 3,726 million; currency adjusted: 6% (1st-3rd quarters 2001: US$ 3,589 million).
73% of sales, US$ 2,735 million (1st-3rd quarters 2001: US$ 2,639 million) were generated by dialysis care. This business grew by 4% in the period under report (currency adjusted: 6%). Growth mainly resulted from the increased number of dialysis treatments. Fresenius Medical Care performed approximately 12.1 million treatments in the first nine months of 2002, 8% more than in the same period of the previous year. In North America, the number of treatments increased by 4% to 8.6 million. Outside North America, 3.5 million treatments were performed, 17% more than in the first nine months of 2001.

Sales of dialysis products, including sales to the company's own clinics, amounted to US$ 1,278 million in the period under report, a growth of 5% (currency adjusted: 6%).

In North America, Fresenius Medical Care achieved a sales increase of 3% to US$ 2,768 million (1st-3rd quarters 2001: US$ 2,684 million). The international business generated sales of US$ 958 million (1st-3rd quarters 2001: US$ 905 million). Currency adjusted, growth amounted to 13% in the international business.

Fresenius Medical Care increased EBIT by 4% from US$ 492 million in the first nine months of 2001 to US$ 511 million in the period under report. Net income before extraordinary expenses rose by 19% from US$ 184 million in the 1st-3rd quarters 2001 to US$ 219 million in the same period of 2002. Earnings were affected by the delay in the introduction of single-use dialysers in the United States.
(For further information please see detailed press release of Fresenius Medical Care AG).


Fresenius Kabi
Earnings of Fresenius Kabi in the first nine months of 2002 developed in accordance with our expectations. Fresenius Kabi achieved an EBIT of € 60 million compared to € 37 million in the same period of the previous year. Earnings were impacted by measures to increase profitability in the Uppsala facility, in particular provisions in connection with job reductions, on-going measures to optimise production and the focusing of the facility on production, as well as by losses caused by the company ProReha, which has now been sold.
The integration of the research and development activities of Uppsala into these activities in Germany and Austria was completed in the 3rd quarter of 2002. As expected, the company succeeded in increasing the production quantities in the Uppsala facility.

The earnings situation of Fresenius Kabi improved substantially in the 3rd quarter: While the EBIT margin was 5.6% in the first half of 2002, it amounted to 8.1% in the 3rd quarter (1st-3rd quarters 2002 accumulated: 6.4%). Due to the measures which have been carried out a further improvement of the EBIT margin is expected in the 4th quarter.

Sales in the first nine months of Fresenius Kabi totalling € 935 million were 1% lower than the previous year's figure (1st-3rd quarters 2001: € 942 million).

Sales development was mainly influenced by the drop in sales of the company ProReha and in the contract manufacturing business. If these effects are not taken into account, Fresenius Kabi achieved a strong organic growth of 7%. Currency conversion, especially of the Latin American currencies and the South African Rand, had an negative impact of 2 percentage points on the sales development of Fresenius Kabi, considerably more than in the first half of 2002.

The company ProReha, with the auxiliary medical products business, was sold effective August 1, 2002. The medical therapies business remains with Fresenius Kabi. In this field Fresenius Kabi will focus on enteral nutrition, wound care, respiratory therapies and incontinence in the ambulatory care area.

The breakdown of Fresenius Kabi's sales is as follows: The hospital business achieved sales of € 710 million (1st-3rd quarters 2001: € 709 million). In the ambulatory care business, Fresenius Kabi achieved sales of € 225 million (1st-3rd quarters 2001: € 233 million).



Fresenius ProServe
Sales of Fresenius ProServe rose to € 475 million in the first nine months of 2002 and thus exceeded the previous year's figure of € 304 million by 56%. 79% of sales were generated by the healthcare business and 21% by the pharma industry business.

Sales of the healthcare business increased from € 252 million in the 1st-3rd quarters 2001 to € 377 million in the 1st-3rd quarters of 2002. 74% of sales were generated by services and 26% by projects. The increase in sales of services to € 277 million was to a large extent due to the acquisition of Wittgensteiner Kliniken AG (same period previous year: € 159 million). Sales of projects, € 100 million, were 8% higher than sales of the 1st-3rd quarters 2001 amounting to € 93 million.

Sales of the pharma industry business amounting to € 98 million in first nine months of 2002 also showed, supported by acquisitions, a good increase (1st-3rd quarters 2001: € 52 million).

EBIT of Fresenius ProServe increased from € 5 million in the 1st-3rd quarters of 2001 to € 16 million in the first nine months of 2002. The strong increase of € 8 million in the 3rd quarter 2002 mainly results from the positive development in the healthcare business.

Orders received and orders on hand of the project business developed as follows:

Orders on hand dropped slightly due to the good increase in sales in the period under report. Due to the nature of the business, orders received and orders on hand are subject to fluctuation from quarter to quarter, depending on when project orders are received. For the whole of 2002, Fresenius ProServe expects another double-digit increase rate in orders received and orders on hand.


Fresenius HemoCare
Fresenius HemoCare increased sales by 6% in the first nine months of 2002 to € 169 million (1st-3rd quarters 2001: € 160 million). This increase was achieved both through organic growth as well as due to the consolidation for the first time of the acquisitions made in 2001. The major sales drivers were the divisions Transfusion Technology and Infusion Technology.

EBIT of Fresenius HemoCare rose to € 7 million in 1st-3rd quarters 2002 from € 6 million in the same period of the previous year. Fresenius HemoCare is continuing to undertake strong efforts to build up its sales organisations.

Group outlook on 2002
The Fresenius Group, with its four business segments, is exceptionally well positioned worldwide. The demand for the companys' life-saving products and services continues to be strong, despite sustained pressure to save costs, price pressure and delayed investments, particularly in the health markets of the West. The markets of the Asia-Pacific region offer especially good growth prospects for Fresenius.

On the basis of the first nine months, Fresenius confirms its target of achieving a high single-digit growth rate in sales at the end of 2002 assuming constant exchange rates. Earnings are expected to grow at a higher rate than sales. This growth is due to the goodwill effect, which mainly concerns Fresenius Medical Care, as a result of the change in the US GAAP accounting standards which came into effect at the beginning of the 2002 financial year.

^* The accounts of the Fresenius Group have been based on US GAAP since January 1, 2002. The figures for the previous year therefore correspond to the US GAAP accounting rules in force in 2001, i.e. the figures for 2001 include amortization of goodwill.

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.

Contact

Head of Corporate Communications
T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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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.

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pr-fre@fresenius.com

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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

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T +49 (0) 6172 608-96008
pr-fre@fresenius.com

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The change of Fresenius SE's legal form into a KGaA* in combination with the conversion of all preference shares into ordinary shares was registered today with the commercial register and thereby became effective. The Company operates from now on as Fresenius SE & Co. KGaA. All shareholders of the former Fresenius SE are now ordinary shareholders of Fresenius SE & Co. KGaA.

Ulf Mark Schneider, CEO of Fresenius, commented: "I am very pleased that we successfully completed the share conversion and the change of legal form. This is an important step for Fresenius and its shareholders. The conversion significantly simplifies our share structure, increases trading liquidity, and improves our financial flexibility by facilitating access to equity capital markets. The new capital structure supports our corporate strategy and its focus on sustainable and profitable growth."

The ordinary shares of Fresenius SE & Co. KGaA will commence trading on January 31, 2011 (ISIN DE0005785604 / Sec ID no. 578560; ticker symbols FRE GR (Bloomberg), FREG.DE (Reuters)). According to the index regulation of Deutsche Börse AG, the new ordinary shares will be included in the German DAX30 index (Deutscher Aktienindex).

The registration of the change of the legal form at the commercial register was finally cleared following a court settlement of pending disputes initiated by minority shareholders.

*Kommanditgesellschaft auf Aktien - partnership limited by shares

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T +49 (0) 6172 608-96008
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• Sales: €16.0 billion, +13% at actual rates, +8% in constant currency
• EBIT: €2.4 billion, +18% at actual rates, +13% in constant currency
• Net income*: €660 million, +28% at actual rates, +23% in constant currency
   
• Excellent sales and earnings growth in all business segments
• "15/15" mid-term goal exceeded (€15 billion in sales, EBIT margin of 15%)
• 15% dividend increase proposed
• Positive outlook for 2011: Sales growth ≥7 %, net income* growth 8% to 12% (both in constant currency)
• New mid-term stretch goal: Group net income >€1 billion in 2014

Ulf Mark Schneider, CEO of Fresenius, commented: "2010 was another outstanding year for Fresenius. Our Group achieved record sales and earnings and double-digit earnings growth in all four business segments. We even exceeded our challenging "15/15" mid-term target – Group sales of €15 billion and an EBIT margin of 15% by 2010 – despite the most severe economic slowdown in postwar history. The global demand for high-quality and innovative health care products and services continues to increase. We see further significant growth potential for all our business segments and target Group net income of more than €1 billion in 2014."

*Net income attributable to Fresenius SE & Co. KGaA; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

18th consecutive dividend increase proposed
Based on the excellent financial results, the Management Board will propose to the Supervisory Board a dividend increase of 15% to €0.86 per ordinary share (2009: €0.75). The total dividend distribution is expected to be €140 million.

Positive outlook for 2011
Fresenius projects sales growth of ≥7% in constant currency. Net income* is expected to increase by 8% to 12% in constant currency. This will result in a 2010/2011 compounded annual net income growth rate of 15% to 17%.

The Group plans to invest ~5% of sales in property, plant and equipment.

The net debt/EBITDA ratio is expected to stay in the range of 2.5 to 3.0.

*Net income attributable to Fresenius SE & Co. KGaA; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.

Strong sales growth in all business segments and regions
Group sales increased by 13% at actual rates and by 8% in constant currency to €15,972 million (2009: €14,164 million). Organic sales growth was 7%. Acquisitions contributed a further 1%. Currency translation had a positive effect of 5%.

Sales growth in the business segments was as follows:

In North America, sales grew by 9% in constant currency. Organic sales growth was 8%. In Europe, sales grew by 7% in constant currency, with organic sales growth contributing 6%. Organic sales growth reached 11% in Latin America and 7% in Asia-Pacific, where the growth rate was impacted by Fresenius Vamed's large prior-year medical supply contracts.

Excellent earnings growth and strong margin improvement
Group EBITDA increased by 17% at actual rates and by 12% in constant currency to €3,057 million (2009: €2,616 million). Group EBIT increased by 18% at actual rates and by 13% in constant currency to €2,418 million (2009: €2,054 million). The EBIT margin increased to 15.1% (2009: 14.5%). All business segments achieved double-digit earnings growth.

Despite a substantial negative currency effect, Group net interest improved to -€566 million (2009: -€580 million).

The other financial result was -€66 million and includes valuation changes of the fair redemption value of the Mandatory Exchangeable Bonds (MEB) of -€98 million and the Contingent Value Rights (CVR) of €32 million. Both are non-cash items.

The Group tax rate* was 32.9% (2009: 31.4%). The tax rate in 2009 was influenced by the revaluation of a tax claim at Fresenius Medical Care.

Noncontrolling interest increased to €583 million (2009: €497 million), of which 93% was attributable to the noncontrolling interest in Fresenius Medical Care.

Group net income** increased by 28% at actual rates and by 23% in constant currency to €660 million (2009: €514 million). Earnings per ordinary share increased by 28% to €4.08. A reconciliation to adjusted earnings according to U.S.GAAP can be found on page 14 of the pdf of this press release.

Net income*** (including special items) grew to €622 million or €3.85 per ordinary share.

*Adjusted for the effect of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) related to the acquisition of APP Pharmaceuticals
**Net income attributable to Fresenius SE & Co. KGaA; adjusted for the effects of mark-to-market accounting of the Mandatory Exchangeable Bonds (MEB) and the Contingent Value Rights (CVR) related to the acquisition of APP Pharmaceuticals. Both are non-cash items.
***Net income attributable to Fresenius SE & Co. KGaA

Continued investments in growth
The Fresenius Group spent €758 million on property, plant and equipment (2009: €671 million) or 4.7% of sales. Acquisition spending was €644 million (2009: €260 million), mainly due to acquisitions at Fresenius Medical Care.

Strong cash flow - 12% cash flow margin
Operating cash flow increased by 23% to €1,911 million (2009: €1,553 million), mainly driven by strong earnings growth. The cash flow margin improved to 12.0% (2009: 11.0%). Net capital expenditure was €733 million (2009: €662 million). Free cash flow before acquisitions and dividends increased by 32% to €1,178 million (2009: €891 million). Free cash flow after acquisitions and dividends was €345 million (2009: €389 million).

Solid balance sheet structure - Leverage ratio significantly improved
The Fresenius Group's total assets grew by 13% to €23,577 million (Dec. 31, 2009: €20,882 million). In constant currency, the increase was 7%. Current assets increased by 20% at actual rates and by 14% in constant currency to €6,435 million (Dec. 31, 2009: €5,363 million). Non-current assets grew by 10% at actual rates and by 5% in constant currency to €17,142 million (Dec. 31, 2009: €15,519 million).

Total shareholders' equity increased by 18% at actual rates and by 11% in constant currency to €8,844 million (Dec. 31, 2009: €7,491 million). The equity ratio improved to 37.5% (Dec. 31, 2009: 35.9%).

Group debt grew by 6% at actual rates and by 1% in constant currency to €8,784 million (Dec. 31, 2009: €8,299 million). Net debt increased by 2% to €8,015 million (Dec. 31, 2009: €7,879 million). At constant currency, net debt decreased by 3%.

Due to the strong earnings growth and cash flow development, the net debt/EBITDA ratio improved to 2.62 as of December 31, 2010 (Dec. 31, 2009: 3.01). At year-end 2008, following the acquisition of APP Pharmaceuticals, the ratio was 3.64.

Number of employees increased
As of December 31, 2010, Fresenius increased the number of its employees by 5% to 137,552 (Dec. 31, 2009: 130,510).

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

Fresenius Biotech reported sales of €26 million in 2010. The immunosuppressive agent ATG contributed €23 million and the trifunctional antibody Removab (catumaxomab) €3 million to sales.

In January 2011, Fresenius Biotech announced a Removab distribution agreement with Swedish Orphan Biovitrum (Sobi). Under the seven-year agreement, Sobi will distribute Removab exclusively in Scandinavia, the Baltics and selected Balkan countries.

So far, Removab has been marketed primarily in Germany and Austria as well as in France.

In 2010, Fresenius Biotech's EBIT was -€32 million (2009: -€44 million). For 2011, Fresenius Biotech expects an EBIT of about -€30 million.


Business Segments

Fresenius Medical Care
Fresenius Medical Care is the world's leading provider of services and products for patients with chronic kidney failure. As of December 31, 2010, Fresenius Medical Care was treating 214,648 patients in 2,757 dialysis clinics.

• Excellent sales and earnings growth continued - EBIT margin increased to 16.0%
• Outlook 2011: Sales of US$12.8 billion to US$13 billion and net income* of US$1.035 billion to US$1.055 billion expected

Fresenius Medical Care achieved sales growth of 7% to US$12,053 million (2009: US$11,247 million). Organic growth was 6%, acquisitions contributed a further 1%. There was no meaningful currency translation effect.

Sales in dialysis care increased by 9% to US$9,070 million (2009: US$8,350 million). Dialysis product sales grew by 3% to US$2,983 million (2009: US$2,897 million).

In North America, sales increased by 7% to US$8,130 million (2009: US$7,612 million). Dialysis services revenue increased by 7% to US$7,303 million. Average revenue per treatment for U.S. clinics decreased to US$355 in Q4 2010 compared to US$357 in Q4 2009. Increases in reimbursement were more than offset by reduced utilization of pharmaceuticals. Sales in dialysis products grew by 1% to US$827 million.

Sales outside North America ("International" segment) grew by 8% to US$3,923 million (2009: US$3,635 million). Sales in dialysis care increased by 14% to US$1,767 million. Dialysis product sales grew by 4% to US$2,156 million.
EBIT increased by 10% to US$1,924 million (2009: US$1,756 million) resulting in an excellent EBIT margin of 16.0% (2009: 15.6%).

In North America, the EBIT margin increased to 17.0% (2009: 16.4%) driven by an increase in revenue per treatment as well as the effect of economies of scale. In addition, the EBIT development benefitted from favorable pharmaceutical costs.

In the International segment, the EBIT margin was 17.3% (2009: 17.5%). EBIT margin was impacted by the devaluation of the Venezuelan bolivar and related charges as well as by lower gross profit margins of acquired. This was partially offset by economies of scale and favorable currency effects.

Net income* increased by 10% to US$979 million (2009: US$891 million).

In January 2011, Fresenius Medical Care announced the signing of a purchase agreement to acquire International Dialysis Centers (IDC), Euromedic International's dialysis service business. 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. IDC currently treats over 8,200 hemodialysis patients and operates a total of 70 clinics in nine countries. On completion, the acquired operations will add approximately US$180 million in annual revenue. The purchase price was €485 million. The transaction remains subject to necessary regulatory approvals by the relevant anti-trust authorities and is expected to close in the second quarter of 2011. The transaction was financed through bonds issued in February 2011.

For 2011, Fresenius Medical Care expects revenue to grow to between US$12.8 billion to US$13 billion, corresponding to a growth rate of 6% to 8%. Net income* is expected to be between US$1.035 billion and US$1.055 billion, with operating margins forecast to increase by approximately 20 basis points.

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

*Net income attributable to Fresenius Medical Care AG & Co. KGaA


Fresenius Kabi
Fresenius Kabi offers infusion therapies, intravenously administered generic drugs and clinical nutrition for seriously and chronically ill patients in the hospital and outpatient environments. The company is also a leading supplier of medical devices and transfusion technology products.

• Excellent organic sales growth of 12% - EBIT margin increased to 20.1%
• Outlook 2011: Organic sales growth of ~5% on top of challenging 2010 base - EBIT margin >19%

Sales increased by 19% to €3,672 million (2009: €3,086 million). Excellent organic growth accounted for 12%, acquisitions contributed a further 1%. Currency translation had a positive effect of 6%, mainly attributable to the strength of the currencies in North America, Brazil and China against the Euro.

In Europe, sales reached €1,702 million (2009: €1,566 million), driven by 6% organic growth. In North America, sales increased to €975 million (2009: €728 million). Organic sales growth was an exceptional 26%. In the Asia-Pacific region, Fresenius Kabi achieved organic sales growth of 13% to €593 million (2009: €482 million). Sales in Latin America and Africa increased to €402 million (2009: €310 million), organic sales growth was 10%.
EBIT grew by 21% to €737 million (2009: €607 million). The EBIT margin improved to 20.1% (2009: 19.7%), driven by the strong development in North America, where product launches and competitors' supply constraints had a positive effect. EBIT includes €20 million for investments in efficiency improvements outside North America.

Net interest improved to -€279 million (2009: -€302 million).

Net income* increased by 47% to €294 million (2009: €200 million).

APP Pharmaceuticals (APP) achieved exceptional sales growth of 29% to US$1,143 million (2009: US$889 million). Adjusted EBITDA** grew by 34% to US$464 million (2009: US$345 million). EBIT increased by 43% to US$391 million (2009: US$273 million). The EBIT margin improved to 34.2% (2009: 30.7%). In addition to the reported APP earnings, Fresenius Kabi generated EBIT contributions from imported IV drugs distributed by APP in North America.

In 2010, APP received seven product approvals from the FDA (U.S. Food and Drug Administration). In addition, Fresenius Kabi Oncology received three FDA approvals.
The APP acquisition is clearly accretive to Group EPS in 2010, in line with our original 2008 expectations.

Operating cash flow of Fresenius Kabi increased by 43% to €567 million (2009: €397 million). The cash flow margin reached 15.4% (2009: 12.9%). Cash flow before acquisitions and dividends grew by 47% to €401 million (2009: €272 million).

Fresenius Kabi achieved outstanding growth in 2010. In 2011, organic sales growth is expected to grow by approximately 5%, taking the 2010/2011 compounded annual growth rate well into the 7 to 10 % mid-term guidance range. Fresenius Kabi expects an EBIT margin of more than 19%. Net income* for 2011 is expected to surpass 2010 earnings.

For the mid-term, Fresenius Kabi maintains its targets of 7% to 10% organic sales growth and an EBIT margin in the 18% to 20% range.

Special items relating to the acquisition of APP Pharmaceuticals are included in the segment "Corporate/Other".

*Net income attributable to Fresenius Kabi AG
**Non-GAAP financial measures - Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP.


Fresenius Helios
Fresenius Helios is one of the largest private hospital operators in Germany. HELIOS Kliniken Group owns 63 hospitals, including five maximum care hospitals in Berlin-Buch, Erfurt, Krefeld, Schwerin and Wuppertal. HELIOS treats more than 2 million patients per year, thereof ~600,000 inpatients, and operates a total of more than 18,500 beds.


 

• Strong sales and earnings growth
• Outlook 2011: Organic sales growth of 3% to 5% and EBIT of €250 million to €260 million expected

Sales increased by 4% to €2,520 million (2009: €2,416 million). Organic growth was 5%, mainly driven by an increase in hospital admissions. The divestiture of one acute care hospital as of January 1, 2010 reduced sales growth by 1%.
EBIT grew by 15% to €235 million (2009: €205 million). The EBIT margin improved to 9.3% (2009: 8.5%). Net income* increased by 22% to €131 million (2009: €107 million).

As of January 1, 2011, HELIOS consolidates the hospital St. Marienberg in Lower Saxony. With 620 employees and 267 beds, the hospital treats about 12,000 inpatients annually. The hospital generated revenues of about €32 million in 2009.

The 2011 outlook remains positive: Fresenius Helios expects to achieve organic sales growth of 3% to 5%. EBIT is projected to increase to €250 million to €260 million.

As a new mid-term goal, Fresenius Helios targets sales of €3.5 billion by 2015, driven by both organic sales growth and acquisitions.

*Net income attributable to HELIOS Kliniken GmbH


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

• Strong sales and earnings growth - Order entry and order backlog with year-end record
• Outlook 2011: Sales and EBIT growth of 5% to 10% expected

Sales increased by 15% to €713 million (2009: €618 million). Organic sales growth reached 15%. Sales in the project business rose by 16% to €487 million (2009: €420 million). Sales in the service business increased by 14% to €226 million (2009: €198 million).

EBIT increased by 14% to €41 million (2009: €36 million). The EBIT margin was 5.8%, achieving the 2009 level. Net income* rose to €30 million (2009: €27 million).

The excellent development of order intake and order backlog continued: Order intake in the project business increased by 16% to €625 million (2009: €539 million), reaching a new all-time high. In Q4 2010, order intake was €207 million. A €76 million order was received for a turn-key hospital construction in Gabon. Order backlog increased by 18% to a new year-end record of €801 million (Dec. 31, 2009: €679 million).

In 2011, Fresenius Vamed expects to achieve both sales and EBIT growth between 5% and 10%.

As a new mid-term stretch goal, Fresenius Vamed targets sales of €1 billion by 2014.

*Net income attributable to VAMED AG

Press Conference and Audio Webcast
As part of the publication of the results for fiscal year 2010, a press conference will be held at the Fresenius headquarters in Bad Homburg on February 23, 2011 at 10 a.m. CET. You are cordially invited to follow the conference in a live broadcast over the Internet at www.fresenius.com, see Press, Audio/Video Service. Following the meeting, a recording of the conference will be available as video-on-demand.