Fresenius Medical Care AG & Co. KGaA Investor Relations Investor News Else-Kr ner-Str. 1 D-61352 Bad Homburg Contact: Oliver Maier Phone: + 49 6172 609 2601 Fax: + 49 6172 609 2301 E-mail: ir@fmc-ag.com North America: He

Fresenius Medical Care Reports

Second Quarter and Six Months 2006 Results;

Outlook for 2006 Upgraded

Summary Second Quarter 2006:

Homburg, Germany August 3, 2006 Fresenius Medical Care AG & Co. KGaA ( the Company )

(Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS-p), the world s largest

provider of Dialysis Products and Services, today announced the results for the

second quarter and the first six months 2006.

Second Quarter 2006:

Please note, the result of operations of Renal Care Group

(RCG) are consolidated from April 1, 2006 onwards.

revenue for the second

quarter 2006 compared to the second quarter 2005 increased by 29% (30% at

constant currency) to $2,165 million. Total

organic revenue growth worldwide was 9%. Dialysis Services revenue grew by 38%

to $1,652 million (38% at constant currency) in the second quarter of

2006. Dialysis Product revenue increased by 9% to $514 million (9% at

constant currency) in the same period. Excluding Renal Care Group (RCG) and the

divested dialysis clinics in conjunction with the acquisition of RCG, revenue

for the second quarter 2006 grew by 9%.

America revenue increased by 38% to

$1,561 million. Dialysis Services revenue increased by 43% to

$1,428 million. Average revenue per treatment for the U.S. clinics

increased by 8% to $317 in the second quarter 2006 as compared to $294 for the

same quarter in 2005. Dialysis Product revenue increased by 5% to

$133 million led by strong sales of our 2008K hemodialysis machines and

single-use dialyzer sales (Carepak ). Excluding RCG and the related

divestitures, the dialysis product revenue increased by 10% versus last year.

revenue was $604 million, an

increase of 11% (11% at constant currency) as compared to the second quarter of

2005. Dialysis Services revenue reached $224 million, an increase of 12%

(13% at constant currency). Dialysis Product revenue increased by 10% to

$380 million (10% at constant currency), led by strong machine (both the

4008 and 5008 series) sales.

income (EBIT) increased by 56% to $372 million, including a

$39 million gain from the divestiture of dialysis clinics in conjunction with

the regulatory approval for the acquisition of RCG. In addition, operating

income for the second quarter 2006 includes $3 million of costs related to the

change of accounting principles for stock options (SFAS 123R) and $4 million of

one-time costs associated with the restructuring of RCG and the transformation

of Fresenius Medical Care s legal form and related legal fees.

Excluding these costs

and the gain from the divestiture, operating income for the second quarter 2006

increased by 42% to $340 million resulting in an operating margin of 15.7%. For

the second quarter 2005 the operating margin was 14.3%.

Compared with the second quarter 2005, the operating

margin in North America increased by 180 basis points to 15.8% due to the consolidation of RCG, an increase in the

revenue per treatment and strong demand for dialysis products. In the

International segment, the operating margin increased by 120 basis points to

operational performance in the International segment was driven by strong

product sales in all regions and positively impacted by improvements in key

countries in Latin America and Asia-Pacific.

Net interest expense for the second quarter 2006 was

$100 million compared to $43 million in the same quarter of 2005.

This increase is absolutely in line with expectations and is purely the result

of the debt financing for the RCG acquisition.

tax expense was $135 million in the second quarter of 2006 as compared to

$79 million in the second quarter 2005, reflecting effective tax rates of 49.6% and 40.4%, respectively.

The tax rate has been impacted in the second quarter by tax payments in

connection with the divestiture of dialysis clinics in the U.S. and the change

of accounting principles for stock options (SFAS 123R). Excluding this impact,

the tax rate was at 38.8%.

income for the second

quarter 2006 was $130 million, an increase of 12%. Excluding one-time

costs and SFAS 123(R), the net income increased on a comparable basis by 19% to

per share (EPS) for the second quarter of 2006 rose by 10% to

$1.32 per ordinary share ($0.44 per American Depositary Share (ADS)), as

compared to $1.20 ($0.40 per ADS) for the second quarter of 2005. The

weighted average number of shares outstanding for the second quarter of 2006

was approximately 98.0 million shares, as compared to 96.4 million

shares for the second quarter 2005. The increase in shares outstanding results

from stock option exercises in 2005 and in the first half of 2006.

the second quarter of 2006, the Company generated $165 million in cash from operations, compared to $130 million last year. Cash from operations in the

second quarter includes $75 million net tax payments related to the divestiture

of clinics and the RCG acquisition. Excluding these tax payments, the

underlying cash from operations in the second quarter 2006 was $240 million, or

11.1% of revenue. The strong cash flow generation was supported by reductions

in Days Sales Outstanding (DSO) and increased earnings.

total of $95 million was spent for capital

expenditures, net of

disposals. Free Cash Flow before acquisitions was $70 million

compared to $72 million in the second quarter of 2005. Excluding tax payments

related to the divestiture of clinics the underlying Free Cash Flow before

acquisitions in the second quarter 2006 was $145 million. A total of

$24 million in cash was used for acquisitions

excluding the RCG acquisition.

the first half of 2006, net income

was $246 million, up 10% from the first half of 2005. Excluding costs related

to the change of accounting principles for stock options (SFAS 123R) and

one-time items net income increased by 19% to $266 million.

revenue was $3,912 million, up

19% from the first half of 2005. Adjusted for currency, net revenue rose 20% in

the first half of 2006. Excluding Renal Care Group and the divested clinics

revenue for the first half of 2006 grew by 10%.

income (EBIT) increased by 34% to $616 million. Operating

income for the first half of 2006 includes $29 million of income as a result of

the gain from the clinic divestitures, net of costs mainly related to the RCG

restructuring and the change of accounting principles for stock options.