##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 20-F/A






|  |                                                                   
|- | ------------------------------------------------------------------
|o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g)
    OF THE

SECURITIES EXCHANGE ACT OF
1934


OR




|  |                                                     
|- | ----------------------------------------------------
|þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF
1934


For the fiscal year ended December 31, 2006


OR




|  |                                                             
|- | ------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE

SECURITIES EXCHANGE ACT OF
1934


For the transition period
from                   to


OR




|  |                                                                
|- | ---------------------------------------------------------------
|o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE

SECURITIES EXCHANGE ACT OF
1934


Date of event requiring this shell company
report


Commission file number 001-32749





FRESENIUS MEDICAL CARE AG & Co. KGaA




FRESENIUS MEDICAL CARE AG & Co. KGaA




Germany







Else-Kröner Strasse 1, 61352 Bad Homburg,
Germany




Securities
registered or to be registered pursuant to Section 12(b) of
the Act:




|                                                          |  |                                          
|--------------------------------------------------------- |  | -----------------------------------------
|Title of each class                                       |  | Name of each exchange on which registered
|                                                          |  |                                          
|American Depositary Shares representing Preference Shares |  | New York Stock Exchange                  
|Preference Shares, no par value                           |  | New York Stock
    Exchange(1)           
|American Depositary Shares representing Ordinary Shares   |  | New York Stock Exchange                  
|Ordinary Shares, no par value                             |  | New York Stock
    Exchange(1)           






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(1) | Not for trading, but only in connection with the registration of
    American Depositary Shares representing such shares.



| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | Securities registered or to be
    registered pursuant to Section 12(g) of the
    Act:None       
|
| | Securities for which there is
    a reporting obligation pursuant to Section 15(d) of the
    Act:
|
| | 77/8%
    USD Trust Preferred Securities due 2008                                                 
|
| | 73/8%
    DM Trust Preferred Securities due 2008                                                  
|
| | 77/8%
    USD Trust Preferred Securities due 2011                                                 
|
| | 73/8%
    Euro Trust Preferred Securities due 2011                                                









þ o




o þ






þ o


12b-2


|                          |  |                     |  |                        
|------------------------- |  | ------------------- |  | -----------------------
|Large accelerated filer þ |  | Accelerated filer o |  | Non-accelerated filer o



o þ


12b-2


o þ










---



##### 












TABLE OF CONTENTS


|                                                                    |  |     |  |                                                                                  |  |      |     | 
|------------------------------------------------------------------- |  | --- |  | -------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                                    |  |     |  |                                                                                  |  | Page
|                                                                    |  |     |  |                                                                                  |  |     
|INTRODUCTION                                                        |  |     |  |                                                                                  |  |      |     | 
|PART I                                                              |  |     |  |                                                                                  |  |      |     | 
|Item 1.                                                             |  | N/A |  | Identity of Directors, Senior Management
    and Advisors                        |  |      | 2   | 
|Item 2.                                                             |  | N/A |  | Offer Statistics and Expected Timetable                                          |  |      | 2   | 
|Item 3.                                                             |  |     |  | Key Information                                                                  |  |      | 2   | 
|Item 4                                                              |  |     |  | Information on the Company                                                       |  |      | 11  | 
|Item 4A.                                                            |  | N/A |  | Unresolved Staff Comments                                                        |  |      | 45  | 
|Item 5.                                                             |  |     |  | Operating and Financial Review and
    Prospects                                 |  |      | 45  | 
|Item 6.                                                             |  |     |  | Directors, Senior Management and
    Employees                                   |  |      | 70  | 
|Item 7.                                                             |  |     |  | Major Shareholders and Related Party
    Transactions                            |  |      | 87  | 
|Item 8.                                                             |  |     |  | Financial Information                                                            |  |      | 92  | 
|Item 9.                                                             |  |     |  | The Offer and Listing Details                                                    |  |      | 95  | 
|Item 10.                                                            |  |     |  | Additional Information                                                           |  |      | 98  | 
|Item 11.                                                            |  |     |  | Quantitative and Qualitative Disclosures
    About Market Risk                   |  |      | 113 | 
|Item 12.                                                            |  | N/A |  | Description of Securities other than Equity
    Securities                       |  |      | 116 | 
|PART II                                                             |  |     |  |                                                                                  |  |      |     | 
|Item 13.                                                            |  | N/A |  | Defaults, Dividend Arrearages and
    Delinquencies                              |  |      | 116 | 
|Item 14.                                                            |  |     |  | Material Modifications to the Rights of
    Security Holders and Use of Proceeds |  |      | 116 | 
|Item 15A.                                                           |  |     |  | Disclosure Controls and Procedures                                               |  |      | 116 | 
|Item 15B.                                                           |  |     |  | Managements annual report on internal
    control over financial reporting      |  |      | 117 | 
|Item 15C.                                                           |  |     |  | Attestation report of the registered public
    accounting firm                  |  |      | 117 | 
|Item 16A.                                                           |  |     |  | Audit Committee Financial Expert                                                 |  |      | 117 | 
|Item 16B.                                                           |  |     |  | Code of Ethics                                                                   |  |      | 118 | 
|Item 16C.                                                           |  |     |  | Principal Accountant Fees and Services                                           |  |      | 118 | 
|Item 16D.                                                           |  |     |  | N/A Exemptions from the Listing Standards
    for Audit Committees               |  |      | 119 | 
|Item 16E.                                                           |  |     |  | Purchase of Equity Securities by the Issuer
    and Affiliated Purchaser         |  |      | 119 | 
|PART III                                                            |  |     |  |                                                                                  |  |      |     | 
|Item 17.                                                            |  | N/A |  | Financial Statements                                                             |  |      | 119 | 
|Item 18.                                                            |  |     |  | Financial Statements                                                             |  |      | 119 | 
|Item 19.                                                            |  |     |  | Exhibits                                                                         |  |      | 119 | 
|N/A means: Not applicable                                           |  |     |  |                                                                                 
|Amended and Restated Deposit Agreement for Ordinary Bearer Shares  
|Amended and Restated Deposit Agreement for Preference Bearer Shares
|Amendment No. 5, Dated as of October 19, 2006                      
|Renewed Post-Closing Covenant Agreement                            
|Amendment for Lease Agreement for Office Buildings                 
|Amendment for Lease Agreement for Manufacturing Facilities         
|Amendment for Lease Agreement for Manufacturing Facilities         
|Amendment for Lease Agreement for Manufacturing Facilities         
|Amendment for Lease Agreement for Office Buildings                 
|Sourcing & Supply Agreement                                        
|Certification Ben J. Lipps                                         
|Certification of Lawrence A. Rosen                                 
|Certification of Ben J. Lipps and Lawrence A. Rosen                
|Consent of Independent Registered Accounting Firm                  



i



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##### Table of Contents






INTRODUCTION


Forward Looking Statements






| |   |                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | dependence on government reimbursements for dialysis services;                                                                                              
|
| |  | a possible decline in EPO utilization or EPO reimbursement;                                                                                                 
|
| |  | the outcome of ongoing government investigations                                                                                                            
|
| |  | the influence of private insurers and managed care organizations
    and healthcare reforms;                                                                
|
| |  | our ability to remain competitive in our markets;                                                                                                           
|
| |  | product liability risks and patent litigation;                                                                                                              
|
| |  | risks relating to the integration of acquisitions and our
    dependence on additional acquisitions;                                                        
|
| |  | the impact of currency fluctuations; and                                                                                                                    
|
| |  | other statements of our expectations, beliefs, future plans and
    strategies, anticipated development and other matters that are
    not historical facts.



Nephrology News & Issues.




1



---



##### Table of Contents






PART I







|        |                                                          
|------- | ---------------------------------------------------------
|Item 1. | Identity of Directors, Senior Management and
    Advisors








|        |                                        
|------- | ---------------------------------------
|Item 2. | Other Statistics and Expected Timetable








|        |                
|------- | ---------------
|Item 3. | Key Information

Selected Financial Data




|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |       |            |  |   |       |            | 
|------------------------------------------------------- | ----------------------------- | ------------- | ----- | ---------- | ---- | - | ----- | ---------- |  | - | ----- | ---------- |  | ---- | ----- | ---------- |  | - | ----- | ---------- | 
|                                                        |                               | 2006          |       |            | 2005 |   |       | 2004       |  |   | 2003  |            |  | 2002 |      
|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |      
|                                                        |                               | (In millions) |      
|Statement of Operations Data:                           |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |       |            |  |   |       |           
|Net revenues                                            |                               | $             | 8,499 |            |      | $ | 6,772 |            |  | $ | 6,228 |            |  | $    | 5,528 |            |  | $ | 5,084 |           
|Cost of
    revenues(1)                                 |                               |               | 5,621 |            |      |   | 4,564 |            |  |   | 4,266 |            |  |      | 3,793 |            |  |   | 3,494 |           
|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |      
|Gross profit                                            |                               |               | 2,878 |            |      |   | 2,208 |            |  |   | 1,962 |            |  |      | 1,735 |            |  |   | 1,590 |           
|Selling, general and
    administrative(1)              |                               |               | 1,549 |            |      |   | 1,218 |            |  |   | 1,059 |            |  |      | 928   |            |  |   | 848   |           
|Gain on sale of dialysis clinics                        |                               |               | (40   | )          |      |   |      |            |  |   |      |            |  |      |      |            |  |   |      |           
|Research and development                                |                               |               | 51    |            |      |   | 51    |            |  |   | 51    |            |  |      | 50    |            |  |   | 47    |           
|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |      
|Operating income                                        |                               |               | 1,318 |            |      |   | 939   |            |  |   | 852   |            |  |      | 757   |            |  |   | 695   |           
|Interest expense, net                                   |                               |               | 351   |            |      |   | 173   |            |  |   | 183   |            |  |      | 211   |            |  |   | 226   |           
|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |      
|Income before income taxes                              |                               |               | 967   |            |      |   | 766   |            |  |   | 669   |            |  |      | 546   |            |  |   | 469   |           
|                                                        | Net income                    |               | $     | 537        |      |   | $     | 455        |  |   | $     | 402        |  |      | $     | 331        |  |   | $     | 290        | 
|                                                        |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |      
|Weighted average of:                                    |                               |               |       |            |      |   |       |            |  |   |       |            |  |      |       |            |  |   |       |           
|                                                        | Preference shares outstanding |               |       | 1,191,792  |      |   |       | 26,789,816 |  |   |       | 26,243,059 |  |      |       | 26,191,011 |  |   |       | 26,185,178 | 
|                                                        | Ordinary shares outstanding   |               |       | 96,873,968 |      |   |       | 70,000,000 |  |   |       | 70,000,000 |  |      |       | 70,000,000 |  |   |       | 70,000,000 | 
|Basic earnings per Ordinary share                       |                               | $             | 5.47  |            |      | $ | 4.68  |            |  | $ | 4.16  |            |  | $    | 3.42  |            |  | $ | 3.00  |           
|Fully diluted earnings per Ordinary share               |                               |               | 5.44  |            |      |   | 4.64  |            |  |   | 4.14  |            |  |      | 3.42  |            |  |   | 3.00  |           
|Basic earnings per Preference share                     |                               |               | 5.55  |            |      |   | 4.75  |            |  |   | 4.23  |            |  |      | 3.49  |            |  |   | 3.06  |           
|Fully diluted earnings per Preference share             |                               |               | 5.52  |            |      |   | 4.72  |            |  |   | 4.21  |            |  |      | 3.49  |            |  |   | 3.06  |           
|Basic earnings per Ordinary ADS                         |                               |               | 1.82  |            |      |   | 1.56  |            |  |   | 1.39  |            |  |      | 1.14  |            |  |   | 1.00  |           
|Fully diluted earnings per Ordinary ADS                 |                               |               | 1.81  |            |      |   | 1.55  |            |  |   | 1.38  |            |  |      | 1.14  |            |  |   | 1.00  |           
|Basic earnings per Preference ADS                       |                               |               | 1.85  |            |      |   | 1.58  |            |  |   | 1.41  |            |  |      | 1.16  |            |  |   | 1.02  |           
|Fully diluted earnings per Preference ADS               |                               |               | 1.84  |            |      |   | 1.57  |            |  |   | 1.40  |            |  |      | 1.16  |            |  |   | 1.02  |           
|Dividends declared per Ordinary
    share ()(a)        |                               |               | 1.41  | (b)        |      |   | 1.23  |            |  |   | 1.12  |            |  |      | 1.02  |            |  |   | 0.94  |           
|Dividends declared per Preference
    share ()
    (a) |                               |               | 1.47  | (b)        |      |   | 1.29  |            |  |   | 1.18  |            |  |      | 1.08  |            |  |   | 1.00  |           
|Dividends declared per Ordinary
    share ($)(a)        |                               |               |      |            |      |   | 1.57  |            |  |   | 1.41  |            |  |      | 1.25  |            |  |   | 1.10  |           
|Dividends declared per Preference share ($)
    (a)     |                               |               |      |            |      |   | 1.65  |            |  |   | 1.48  |            |  |      | 1.32  |            |  |   | 1.17  |           

2



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##### Table of Contents



|                                                      |  |               |        |  |      |   |       |      |  |   |       |  |  |      |       |  |  |   |       | 
|----------------------------------------------------- |  | ------------- | ------ |  | ---- | - | ----- | ---- |  | - | ----- |  |  | ---- | ----- |  |  | - | ----- | 
|                                                      |  | 2006          |        |  | 2005 |   |       | 2004 |  |   | 2003  |  |  | 2002 |      
|                                                      |  |               |        |  |      |   |       |      |  |   |       |  |  |      |      
|                                                      |  | (In millions) |       
|Balance Sheet Data                                    |  |               |        |  |      |   |       |      |  |   |       |  |  |      |       |  |  |   |       | 
|Working capital                                       |  | $             | 1,036  |  |      | $ | 883   |      |  | $ | 508   |  |  | $    | 794   |  |  | $ | 526   | 
|Total assets                                          |  |               | 13,045 |  |      |   | 7,983 |      |  |   | 7,962 |  |  |      | 7,503 |  |  |   | 6,780 | 
|Total long-term debt                                  |  |               | 5,083  |  |      |   | 1,895 |      |  |   | 1,824 |  |  |      | 2,354 |  |  |   | 2,234 | 
|Shareholders equity                                  |  |               | 4,870  |  |      |   | 3,974 |      |  |   | 3,635 |  |  |      | 3,244 |  |  |   | 2,807 | 
|Capital Stock  Preference shares  Nominal
    Value |  |               | 3      |  |      |   | 74    |      |  |   | 70    |  |  |      | 70    |  |  |   | 70    | 
|Capital Stock  Ordinary shares  Nominal
    Value   |  |               | 303    |  |      |   | 229   |      |  |   | 229   |  |  |      | 229   |  |  |   | 229   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain items in prior years have been reclassified to conform
    with the current periods presentation. The reclassifications
    include $125 million for 2005, $124 million for 2004,
    $94 million for 2003 and $66 million for 2002 relating
    to rents for clinics which were removed from selling, general
    and administrative expenses for the International segment and
    included in cost of revenue for dialysis care.
|   
|(a) | Amounts shown for each year from 2002 to 2006 represent
    dividends paid with respect to such year. The actual declaration
    and payment of the dividend was made in the following year,
    after approval of the dividend at our Annual General Meeting.                                                                                                                                                                             
|   
|(b) | Our general partners Management Board has proposed
    dividends for 2006 of
    1.41 per
    Ordinary share and
    1.47 per
    Preference share. These dividends are subject to approval by our
    shareholders at our Annual General Meeting to be held on
    May 15, 2006.                                                                                                                                                       

RISK FACTORS




Risks Relating to Litigation and Regulatory Matters.


If we do not comply with the many governmental regulations
applicable to our business or with the corporate integrity
agreement between us and the U.S. government, we could be
excluded from government health care reimbursement programs or
our authority to conduct business could be terminated, either of
which would result in a material decrease in our revenue.






| |   |                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------
| |  | the quality, safety and efficacy of medical and pharmaceutical
    products and supplies;                         
|
| |  | the operation of manufacturing facilities, laboratories and
    dialysis clinics;                                 
|
| |  | accurate reporting and billing for government and third-party
    reimbursement; and                              
|
| |  | compensation of medical directors and other financial
    arrangements with physicians and other referral sources.





3



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4



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##### Table of Contents



A change in U.S. government reimbursement for
dialysis care could materially decrease our revenues and
operating profit




A reduction in reimbursement for or a change in the
utilization of EPO could materially reduce our revenue and
operating profit. An interruption of supply or our inability to
obtain satisfactory terms for EPO could reduce our
revenues








Managed care plans usually negotiate lower reimbursement
rates than other health plans. As such plans grow, amounts paid
for our services and products by non-governmental payors could
decrease






5



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##### Table of Contents



If our joint ventures violate the law, our business could
be adversely affected.




Proposals for health care reform could decrease our
revenues and operating profit




Risks Relating to our Business


A significant portion of our North American profits are
dependent on the services we provide to a small portion of our
patients who are covered by private insurance.






6



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##### Table of Contents







| |   |                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a portion of our business that is currently reimbursed by
    private insurers or hospitals may become reimbursed by managed
    care organizations, which generally have lower rates for our
    services; or
|
| |  | a portion of our business that is currently reimbursed by
    private insurers at rates based on our billed charges may become
    reimbursed under a contract at lower rates.                                

Our growth depends, in part, on our ability to continue to
make acquisitions






Our competitors could develop superior technology or
otherwise impact our product sales




Generic competition




If physicians prescribe
Aranesp®
or similar anemia fighting medications for hemodialysis patients
or physicians, we could be less profitable.


® ® ®


7



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##### Table of Contents



® ® ® ® ® ® ®




| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the dosing volumes of
    CERA®
    or
    Aranesp®
    required to treat anemia in dialysis patients may be less than
    the corresponding volume of
    EPO®,
    without an offsetting adjustment in relative reimbursement rates;
|
| |  | our margins realized from the administration of
    Aranesp®
    or
    CERA®
    could be lower than the margins realized on the administration
    of
    EPO®; or                                                                  
|
| |  | physicians could decide to administer
    Aranesp®
    or
    CERA®
    in their offices, and we would not recognize net revenue or
    profit from the administration of
    EPO®
    or
    Aranesp®.                               

We are exposed to products liability and other claims
which could result in significant costs and liability which we
may not be able to insure on acceptable terms in the
future






If physicians and other referral sources cease referring
patients to our dialysis clinics or cease purchasing our
dialysis products, our revenues would decrease






8



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##### Table of Contents





If we are unable to attract and retain skilled medical,
technical and engineering personnel, we may be unable to manage
our growth or continue our technological development






We face specific risks from international
operations






| |   |                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------
| |  | The economic situation in developing countries could deteriorate;                                                                  
|
| |  | Fluctuations in exchange rates could adversely affect
    profitability;                                                           
|
| |  | We could face difficulties in enforcing and collecting accounts
    receivable under some countries legal systems;                
|
| |  | Local regulations could restrict our ability to obtain a direct
    ownership interest in dialysis clinics or other operations;    
|
| |  | Political and economic instability, especially in developing and
    newly industrializing countries, could disrupt our operations;
|
| |  | Some customers and governments could have longer payment cycles,
    with resulting adverse effects on our cash flow; and          
|
| |  | Some countries could impose additional taxes or restrict the
    import of our products.                                           



Diverging views of the financial authorities could require
us to make additional tax payments




9



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##### Table of Contents





Risks Relating to our Securities


The public market for our preference shares and our
preference share ADSs is limited and highly illiquid. The
delisting of our preference share ADSs would further reduce the
market for our preference shares


FMC-AG


Our substantial indebtedness may limit our ability to pay
dividends or implement certain elements of our business
strategy








Fresenius AG owns 100% of the shares in the general
partner of our Company and is able to control our management and
strategy


FMC-AG


10



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##### Table of Contents





Because we are not organized under U.S. law, we are
subject to certain less detailed disclosure requirements under
U.S. federal securities laws




10A-3







|        |                           
|------- | --------------------------
|Item 4. | Information on the Company



|   |                                       
|-- | --------------------------------------
|A. | History and Development of the Company

General


Fresenius Medical Care AG & Co. Kommanditgesellschaft auf Aktien (FMC-AG), Aktiengesellschaft


Amtsgericht Sitz


History


Gesellschaft mit beschränkter
Haftung Aktiengesellschaft




11



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| |   |                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | all of the outstanding common stock of W.R. Grace &
    Co., whose sole business at the time of the transaction
    consisted of National Medical Care, Inc., its global dialysis
    business, in exchange for 31,360,000 Ordinary shares; and
|
| |  | the publicly-held minority interest in Fresenius USA, Inc., in
    exchange for 3,430,000 Ordinary shares.                                                                                                                                     



Aktiengesellschaft Kommanditgesellschaft auf Aktien FMC-AG Genehmigtes Kapital







12



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##### Table of Contents







Capital Expenditures


®


|                                                       |               |                            |   |       |       |  |   |      |     |  |   |     |     | 
|------------------------------------------------------ | ------------- | -------------------------- | - | ----- | ----- |  | - | ---- | --- |  | - | --- | --- | 
|                                                       |               | Actual                     |  
|                                                       |               |                            |  
|                                                       |               | 2006                       |   |       | 2005  |  |   | 2004 |    
|                                                       |               |                            |   |       |       |  |   |      |    
|                                                       |               | (in millions)              |  
|Acquisitions                                           |               |                            |   |       |       |  |   |      |     |  |   |    
|                                                       | North America |                            | $ | 4,295 |       |  | $ | 77   |     |  | $ | 65  |    
|                                                       | International |                            |   | 21    |       |  |   | 57   |     |  |   | 55  |    
|                                                       |               |                            |   |       |       |  |   |      |    
|                                                       |               | Total Acquisitions         |   | $     | 4,316 |  |   | $    | 134 |  |   | $   | 120 | 
|                                                       |               |                            |   |       |       |  |   |      |    
|Capital expenditures for property, plant and equipment |               |                            |   |       |       |  |   |      |     |  |   |    
|                                                       | North America |                            | $ | 306   |       |  | $ | 176  |     |  | $ | 166 |    
|                                                       | International |                            |   | 161   |       |  |   | 139  |     |  |   | 113 |    
|                                                       |               |                            |   |       |       |  |   |      |    
|                                                       |               | Total Capital Expenditures |   | $     | 467   |  |   | $    | 315 |  |   | $   | 279 | 
|                                                       |               |                            |   |       |       |  |   |      |    







|   |                  
|-- | -----------------
|B. | Business Overview

Our Business


Nephrology News & Issues,


13



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|              |                   |               |       |       |      |  |       |       |  |  |       |       | 
|------------- | ----------------- | ------------- | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|              |                   | 2006          |       |       | 2005 |  |       | 2004  | 
|              |                   |               |       |       |      |  |       |       | 
|              |                   | (in millions) |      
|North America |                   |               |       |       |      |  |       |       |  |  |       |      
|              | Dialysis Care     |               | $     | 5,464 |      |  | $     | 4,054 |  |  | $     | 3,802 | 
|              | Dialysis Products |               |       | 561   |      |  |       | 523   |  |  |       | 446   | 
|              |                   |               |       |       |      |  |       |       | 
|              |                   |               | 6,025 |       |      |  | 4,577 |       |  |  | 4,248 |      
|International |                   |               |       |       |      |  |       |       |  |  |       |      
|              | Dialysis Care     |               |       | 913   |      |  |       | 813   |  |  |       | 699   | 
|              | Dialysis Products |               |       | 1,561 |      |  |       | 1,382 |  |  |       | 1,281 | 
|              |                   |               |       |       |      |  |       |       | 
|              |                   |               | 2,474 |       |      |  | 2,195 |       |  |  | 1,980 |      

Renal Industry Overview




End-Stage Renal Disease






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| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | increased general life expectancy and the overall aging of the
    general U.S. and European population;        
|
| |  | shortage of donor organs for kidney transplants;                                                                
|
| |  | improved dialysis technology that makes life-prolonging dialysis
    available to a larger patient population;  
|
| |  | greater access to treatment in developing countries; and                                                        
|
| |  | better treatment and survival of patients with hypertension,
    diabetes and other illnesses that lead to ESRD.

Dialysis Treatment Options for ESRD


Hemodialysis.






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Peritoneal Dialysis.


Our Strategy


Growth Objectives




GOAL 10 Objectives:


|                                           |  |      |       |  |      |   |        |      |  |   |           |  |  |   |         | 
|------------------------------------------ |  | ---- | ----- |  | ---- | - | ------ | ---- |  | - | --------- |  |  | - | ------- | 
|                                           |  | 2004 |       |  | 2005 |   |        | 2006 |  |   | GOAL 2010 | 
|                                           |  |      |       |  |      |   |        |      |  |   |           | 
|Revenue ($ in million)                     |  | $    | 6,228 |  |      | $ | 6,772  |      |  | $ | 8,499     |  |  | $ | Y11,500 | 
|Annual revenue growth at constant currency |  |      | 10%   |  |      |   | 8%     |      |  |   | 25%       |  |  |   | Y69%   | 
|Share of dialysis market*                  |  |      | Y12%  |  |      |   | 12.90% |      |  |   | 15.5%     |  |  |   | Y18%    | 
|Market volume* ($ in billion)              |  | $    | Y50   |  |      | $ | Y52,5  |      |  | $ | Y55       |  |  | $ | Y67     | 
|Annual net income growth**                 |  |      | 21%   |  |      |   | 17%    |      |  |   | 24%       |  |  |   | >10%    | 






|  |                  
|- | -----------------
|* | Company estimates

|   |                                                                                       
|-- | --------------------------------------------------------------------------------------
|** | 2005 excluding one-time effects and 2006 excluding one-time
    effects and FAS 123(R)



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Growth Paths






| |                       
| | ----------------------
| | Path 1: Organic Growth







| |                     
| | --------------------
| | Path 2: Acquisitions







| |                             
| | ----------------------------
| | Path 3: Horizontal Expansion





| |                       
| | ----------------------
| | Path 4: Home Therapies





Dialysis Care


Dialysis Services




17



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| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | our reputation for quality patient care and treatment;                                                                                  
|
| |  | our extensive network of dialysis clinics, which enables
    physicians to refer their patients to conveniently located
    clinics; and
|
| |  | our reputation for technologically advanced products for
    dialysis treatment.                                                        







follow-up




18



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Non-U.S.)


Fresenius
UltraCare®
Program


® ® ® tm ® ®


Laboratory Services




19



---



##### Table of Contents



Acquisitions


day-to






® ®




Quality Assurance in Dialysis Care


ISO-Norm ISO-Norm ISO-Norm






20



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| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | Improvement of risk management systems in dialysis clinics.                                      
|
| |  | Extension of the matrix certification of the quality management
    system to Germany and Romania
|
| |  | Extension of matrix certification of environmental management
    system to France.              



Sources of U.S. Dialysis Care Net Revenue




|                                      |  |                         |        |  |      |  |        |      |  |  |        | 
|------------------------------------- |  | ----------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                      |  | Year Ended December 31, |       
|                                      |  |                         |       
|                                      |  | 2006                    |        |  | 2005 |  |        | 2004 | 
|                                      |  |                         |        |  |      |  |        |      | 
|Medicare ESRD program                 |  |                         | 54.5%  |  |      |  | 56.0%  |      |  |  | 58.3%  | 
|Private/ alternative payors           |  |                         | 34.4%  |  |      |  | 31.6%  |      |  |  | 30.0%  | 
|Medicaid and other government sources |  |                         | 3.9%   |  |      |  | 4.2%   |      |  |  | 4.1%   | 
|Hospitals                             |  |                         | 7.2%   |  |      |  | 8.2%   |      |  |  | 7.6%   | 
|                                      |  |                         |        |  |      |  |        |      | 
|Total                                 |  |                         | 100.0% |  |      |  | 100.0% |      |  |  | 100.0% | 
|                                      |  |                         |        |  |      |  |        |      | 



Patient, Physician and Other Relationships






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Competition


Dialysis Services.








Laboratory Services.


Dialysis Products








| |   |                                     
| | - | ------------------------------------
| |  | HD machines and PD cyclers          
|
| |  | Dialyzers, our largest product group
|
| |  | PD solutions in flexible bags       

22



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| |   |                                          
| | - | -----------------------------------------
| |  | HD concentrates, solutions and granulates
|
| |  | Bloodlines                               
|
| |  | Systems for water treatment              



Overview




|                             |  |                            |         |  |       |  |       |          |  |   |         |       |  |          |     |  |       |   |         |  |  |  |     | 
|---------------------------- |  | -------------------------- | ------- |  | ----- |  | ----- | -------- |  | - | ------- | ----- |  | -------- | --- |  | ----- | - | ------- |  |  |  | --- | 
|                             |  | Year Ended December 31,    |        
|                             |  |                            |        
|                             |  | 2006                       |         |  | 2005  |  |       | 2004     | 
|                             |  |                            |         |  |       |  |       |          | 
|                             |  | Total                      |         |  |       |  | Total |          |  |   |         | Total |  |          |    
|                             |  | Product                    |         |  | % of  |  |       | Product  |  |   | % of    |       |  | Product  |     |  | % of  |  
|                             |  | Revenues                   |         |  | Total |  |       | Revenues |  |   | Total   |       |  | Revenues |     |  | Total |  
|                             |  |                            |         |  |       |  |       |          |  |   |         |       |  |          |     |  |       |  
|                             |  | (U.S. dollars in millions) |        
|Hemodialysis Products        |  | $                          | 1,775.0 |  |       |  | 84    |          |  | $ | 1,588.6 |       |  |          | 83  |  |       | $ | 1,453.0 |  |  |  | 84  | 
|Peritoneal Dialysis Products |  |                            | 307.8   |  |       |  | 14    |          |  |   | 275.5   |       |  |          | 15  |  |       |   | 242.9   |  |  |  | 14  | 
|Adsorbers                    |  |                            | 38.8    |  |       |  | 2     |          |  |   | 40.9    |       |  |          | 2   |  |       |   | 30.9    |  |  |  | 2   | 
|                             |  |                            |         |  |       |  |       |          |  |   |         |       |  |          |     |  |       |  
|Total                        |  | $                          | 2,121.6 |  |       |  | 100   |          |  | $ | 1,905.0 |       |  |          | 100 |  |       | $ | 1,726.8 |  |  |  | 100 | 
|                             |  |                            |         |  |       |  |       |          |  |   |         |       |  |          |     |  |       |  

Hemodialysis Products




Dialysis Machines. tm






| |   |                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Volumetric dialysate balancing and ultrafiltration control
    system. This system, which we introduced in 1977, provides for
    safe and more efficient use of highly permeable dialyzers,
    permitting efficient dialysis with controlled rates of fluid
    removal;
|
| |  | Proven hydraulic systems, providing reliable operation and
    servicing flexibility;                                                                                                                                                                                     
|
| |  | Compatibility with all manufacturers dialyzers and a wide
    variety of blood-lines and dialysis solutions, permitting
    maximum flexibility in both treatment and disposable products
    usage;                                                                     

23



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| |   |                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Modular design, which permits us to offer dialysis clinics a
    broad range of options to meet specific patient or regional
    treatment requirements. Modular design also allows upgrading
    through module substitution without replacing the entire machine;                                                                                                                           
|
| |  | Specialized modules that provide monitoring and response
    capability for selected bio-physical patient parameters, such as
    body temperature and relative blood volume. This concept, known
    as physiological dialysis, permits hemodialysis treatments with
    lower incidence of a variety of symptoms or side effects, which
    still occur frequently in standard hemodialysis.
|
| |  | Sophisticated microprocessor controls, and display and readout
    panels that are adaptable to meet local language requirements;                                                                                                                                                                                                                                                             
|
| |  | Battery backup, which continues operation of the blood circuit
    and all protective systems up to 20 minutes following a power
    failure;                                                                                                                                                                                                                                                 
|
| |  | Online clearance, measurement of dialyzer clearance for quality
    assurance with On-Line Clearance Monitoring, providing immediate
    effective clearance information, real time treatment outcome
    monitoring, and therapy adjustment during dialysis without
    requiring invasive procedures or blood samples;                                                                      
|
| |  | In the series 5008 and 4008H, ONLINE-Hemodiafilitration;                                                                                                                                                                                                                                                                                                                                      
|
| |  | On-line data collection capabilities and computer interfacing
    with our FINESSE/ TDMS module and FDS08 system. Our systems
    enable us to:                                                                                                                                                                                                                                               



| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | monitor and assess prescribed therapy;                                                                                                                                                        
|
| |  | connect a large number of hemodialysis machines and peripheral
    devices, such as patient scales, blood chemistry analyzers and
    blood pressure monitors, to a personal computer network;
|
| |  | enter nursing records automatically at bedside to register and
    document patient treatment records, facilitate billing, and
    improve record-keeping and staff efficiency;               
|
| |  | adapt to new data processing devices and trends;                                                                                                                                              
|
| |  | perform home hemodialysis with remote monitoring by a staff
    caregiver; and                                                                                                                
|
| |  | record and analyze trends in medical outcome factors in
    hemodialysis patients.                                                                                                            

Dialyzers. ®




| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | higher biological compatibility, resulting in reduced incidence
    of adverse reactions to the fibers;                                                                                                                                             
|
| |  | greater capacity to clear uremic toxins from patient blood
    during dialysis, permitting more thorough, more rapid dialysis,
    resulting in shorter treatment time; and                                                                         
|
| |  | a complete range of permeability, or membrane pore size, which
    permits dialysis at prescribed rates  high flux and
    low flux, as well as ultra flux for acute dialysis, and allows
    tailoring of dialysis therapy to individual patients.

Other Hemodialysis Products




24



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##### Table of Contents





Peritoneal Dialysis Products








| |   |                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Fewer possibilities for touch contamination. Our unique
    PIN and DISC technology was designed to reduce the number of
    steps in the fluid exchange process and by doing so has lessened
    the risk of infection, particularly in the disconnection step in
    which the patient connector is closed automatically without the
    need for manual intervention.
|
| |  | Improved biocompatibility. The new balanceand
    bicaVera®
    solutions are pH neutral and have very low glucose degradation
    products providing greater protection for the peritoneal
    membrane.                                                                                                                                                               
|
| |  | Environmentally friendly material: Our
    staysafe®
    system is made of
    Biofine®,
    a material, developed by Fresenius, which upon combustion is
    reduced to carbon dioxide and water and does not contain any
    plasticizers.                                                                                                                           

8-10




| |   |                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Improved quality of life. The patient is treated at night
    and can lead a more normal life during the day without fluid
    exchange every few hours.                                                                                                                                                        
|
| |  | Improved adequacy of dialysis. By adjusting the
    parameters of treatment it is possible to provide more dialysis
    to the patient compared to conventional CAPD therapy. This
    therapy offers important options to physicians such as improving
    the delivered dose of dialysis for certain patients.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | sleepsafe: The sleepsafemachine has
    been used since 1999. It has automated connection technology
    thus further reducing the risk on touch contamination. Another
    key safety feature is the barcode recognition system for the
    types of solution bags used. This improves compliance and
    ensures that the prescribed dosage is administered to the
    patient. There is also a pediatric option for the treatment of
    infants.                                                                                                   
|
| |  | North American cycler portfolio: This includes the
    (a) Freedom®
    and
    90/2®
    cyclers for pediatric and acute markets, (b) the
    Freedom®
    Cycler PD+ with IQ card and (c) the Newton
    IQ®
    Cycler. The credit card-sized IQcard can provide actual
    treatment details and results for compliance monitoring to the
    physician and, when used with the Newton IQ Cycler, can
    upload the patients prescription into the machine. The
    Newton IQ Cycler also pumps waste dialysate directly into
    a receptacle.

Patient Management Software: Pack-PD®


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---



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Customers, Marketing, Distribution and Service






day-to


Manufacturing Operations


state-of






26



---



##### Table of Contents







Environmental Management








Sources of Supply






27



---



##### Table of Contents



New Product Introductions




Patents and Licenses


plus ® ®








® non-U.S.




Trademarks




28



---



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Competition




Risk Management










Regulatory and Legal Matters


Regulatory Overview


non-U.S.


29



---



##### Table of Contents







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | failure to receive required licenses, certifications or other
    approvals for new facilities or products or significant delays
    in such receipt;                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | complete or partial loss of various federal certifications,
    licenses, or other permits required under the laws of any state
    or other governmental authority by withdrawal, revocation,
    suspension, or termination or restrictions of such certificates
    and licenses by the imposition of additional requirements or
    conditions, or the initiation of proceedings possibly leading to
    such restrictions or the partial or complete loss of the
    required certificates, licenses or permits; and
|
| |  | changes resulting from health care reform or other government
    actions that reduce reimbursement or reduce or eliminate
    coverage for particular services we provide.                                                                                                                                                                                                                                                                                                                                              





Product Regulation


U.S.




30



---



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International (Including Germany and Other Non-U.S).




Drugs. (Arzneimittelgesetz)




31



---



##### Table of Contents





Stufenplanbeauftragter




Medical Devices.




32



---



##### Table of Contents











Environmental Regulation




Facilities and Operational Regulation


U.S.




33



---



##### Table of Contents













International (Including Germany and Other
Non-U.S.)








34



---



##### Table of Contents







Reimbursement








U.S.


Dialysis Services.










35



---



##### Table of Contents













Medicaid Rebate Program.




36



---



##### Table of Contents







Laboratory Tests.






Erythropoetin (EPO).










| |   |                                                                                                
| | - | -----------------------------------------------------------------------------------------------
| |  | future changes in the EPO reimbursement methodology and/or rate;                               
|
| |  | inclusion of EPO in the Medicare composite rate without
    offsetting increases to such rate; 
|
| |  | reduction in the typical dosage per administration;                                            
|
| |  | increases in the cost of EPO without offsetting increases in the
    EPO reimbursement rate; or
|
| |  | reduction by the manufacturer of EPO of the amount of overfill
    in the EPO vials.           

37



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Coordination of Benefits.


30-month 3-month 30-month


Possible Changes in Medicare.


International (Including Germany and Other
Non-U.S.)






fee-for


country-to


38



---



##### Table of Contents







country-to


country-to


5%-14%


Anti-kickback Statutes, False Claims Act, Health Care Fraud,
Stark Law and Fraud and Abuse Laws in North America




39



---



##### Table of Contents





Anti-kickback Statutes






False Claims Act and Related Criminal Provisions




The Health Insurance Portability and Accountability Act of
1996






40



---



##### Table of Contents







Balanced Budget Act of 1997






Stark Law






41



---



##### Table of Contents







Other Fraud and Abuse Laws








Health Care Reform




42



---



##### Table of Contents





|   |                         
|-- | ------------------------
|C. | Organizational Structure








|   |                              
|-- | -----------------------------
|D. | Property, plant and equipment

Property




|                     |  |                |        |           |              |  |        |            |  |               |  |                                                                                                                
|-------------------- |  | -------------- | ------ | --------- | ------------ |  | ------ | ---------- |  | ------------- |  | ---------------------------------------------------------------------------------------------------------------
|                     |  |                |        | Currently |              |  |        |            | 
|                     |  |                |        | Owned     |              |  |        |            | 
|                     |  | Floor Area     |        |           | or Leased    |  |        |            |  |              
|                     |  | (Approximate   |        |           | by Fresenius |  |        | Lease      |  |              
|Location             |  | Square Meters) |        |           | Medical Care |  |        | Expiration |  | Use          
|                     |  |                |        |           |              |  |        |            |  |              
|Bad Homburg, Germany |  |                | 15,646 |           |              |  | leased |            |  | December 2016 |  | Corporate headquarters and administration                                                                      
|St. Wendel, Germany  |  |                | 58,767 |           |              |  | leased |            |  | December 2016 |  | Manufacture of polysulfone membranes, dialyzers and peritoneal
    dialysis solutions; research and development
|Schweinfurt, Germany |  |                | 24,900 |           |              |  | leased |            |  | December 2016 |  | Manufacture of hemodialysis machines and peritoneal dialysis
    cyclers; research and development             

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|                             |  |                |        |           |              |  |        |            |  |                                                                                      |  |                                                                                                                                                                                         
|---------------------------- |  | -------------- | ------ | --------- | ------------ |  | ------ | ---------- |  | ------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                             |  |                |        | Currently |              |  |        |            | 
|                             |  |                |        | Owned     |              |  |        |            | 
|                             |  | Floor Area     |        |           | or Leased    |  |        |            |  |                                                                                     
|                             |  | (Approximate   |        |           | by Fresenius |  |        | Lease      |  |                                                                                     
|Location                     |  | Square Meters) |        |           | Medical Care |  |        | Expiration |  | Use                                                                                 
|                             |  |                |        |           |              |  |        |            |  |                                                                                     
|Bad Homburg (OE)             |  |                | 10,304 |           |              |  | leased |            |  | December 2016                                                                        |  | Manufacture of hemodialysis concentrate solutions/ Technical
    Services/ Logistics services Amgen                                                                                     
|Darmstadt                    |  |                | 21,597 |           |              |  | leased |            |  | November 2010                                                                        |  | Regional Distribution Center Central Europe                                                                                                                                             
|Gernsheim, Germany           |  |                | 32,307 |           |              |  | leased |            |  | December 2009                                                                        |  | Regional Distribution A4/WE/AP/LA                                                                                                                                                       
|Palazzo Pignano, Italy       |  |                | 19,990 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of bloodlines and tubing                                                                                                                                                    
|LArbresle, France           |  |                | 13,524 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of polysulfone dialyzers, special filters and dry
    hemodialysis concentrates                                                                                             
|Nottinghamshire, UK          |  |                | 5,110  |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions                                                                                                                                       
|Vrsac, Serbia                |  |                | 2,642  |           |              |  | owned  |            |  |                                                                                      |  | Production area, Laboratory, lobby, maintenance, administration,
    logistics                                                                                                          
|Barcelona, Spain             |  |                | 2,000  |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions                                                                                                                                       
|Antalya, Turkey              |  |                | 8,676  |           |              |  | leased |            |  | December 2022                                                                        |  | Manufacture of bloodlines                                                                                                                                                               
|Casablanca, Morocco          |  |                | 2,823  |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions                                                                                                                                       
|Guadalajara, México          |  |                | 26,984 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of peritoneal dialysis bags                                                                                                                                                 
|Buenos Aires, Argentina      |  |                | 10,500 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions, dry
    hemodialysis concentrates, bloodlines and desinfectants                                                                      
|São Paulo, Brazil            |  |                | 8,566  |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions, dry
    hemodialysis concentrates, peritoneal dialysis bags, intravenous
    solutions bags, peritoneal dialysis and blood lines sets
|Bogotá, Colombia             |  |                | 11,825 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate solutions, peritoneal
    dialysis bags, intravenous solutions, administration                                                                  
|Valencia, Venezuela          |  |                | 3,562  |           |              |  | leased |            |  | May 2008                                                                             |  | Head Office and Warehouse                                                                                                                                                               
|Hong Kong                    |  |                | 3,588  |           |              |  | leased |            |  | November 2007  November 2009                                                        |  | various leases of Warehouse facility                                                                                                                                                    
|Smithfield, Australia        |  |                | 5,350  |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of hemodialysis concentrate                                                                                                                                                 
|Altona VIC, Australia        |  |                | 2,400  |           |              |  | leased |            |  | May 2009                                                                             |  | Warehouse                                                                                                                                                                               
|Yongin, South Korea          |  |                | 2,645  |           |              |  | leased |            |  | December 2009                                                                        |  | Warehouse                                                                                                                                                                               
|Seoul, South Korea           |  |                | 2,425  |           |              |  | leased |            |  | February 2007                                                                        |  | Administration                                                                                                                                                                          
|Oita, Japan (Inukai Plant)   |  |                | 30,647 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of polysulfone filters                                                                                                                                                      
|Oita, Japan                  |  |                | 7,925  |           |              |  | owned  |            |  |                                                                                      |  | Warehouse and Building                                                                                                                                                                  
|Fukuoka, Japan (Buzen Plant) |  |                | 37,092 |           |              |  | owned  |            |  |                                                                                      |  | Manufacture of peritoneal dialysis bags                                                                                                                                                 
|Saga, Japan                  |  |                | 4,972  |           |              |  | leased |            |  | March 2010                                                                           |  | Warehouse                                                                                                                                                                               
|Waltham, Massachusetts       |  |                | 19,045 |           |              |  | leased |            |  | April 2017  July 2017 with a 10 year renewal and
    a second 5 year renewal option |  | Corporate headquarters and administration  North
    America                                                                                                                           
|Lexington, Massachusetts     |  |                | 1,883  |           |              |  | leased |            |  | December 2007                                                                        |  | Corporate/FMS administration  North America                                                                                                                                            
|Lexington, Massachusetts     |  |                | 6,425  |           |              |  | leased |            |  | October 2012 with 5 year renewal option                                              |  | IT headquarters and administration  North America                                                                                                                                      
|Nashville, Tennessee         |  |                | 3,053  |           |              |  | leased |            |  | April 2009                                                                           |  | IT administration                                                                                                                                                                       

44



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|                           |  |                |        |           |              |  |        |            |  |                                                                                              |  |                                                                                                                    
|-------------------------- |  | -------------- | ------ | --------- | ------------ |  | ------ | ---------- |  | -------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------
|                           |  |                |        | Currently |              |  |        |            | 
|                           |  |                |        | Owned     |              |  |        |            | 
|                           |  | Floor Area     |        |           | or Leased    |  |        |            |  |                                                                                             
|                           |  | (Approximate   |        |           | by Fresenius |  |        | Lease      |  |                                                                                             
|Location                   |  | Square Meters) |        |           | Medical Care |  |        | Expiration |  | Use                                                                                         
|                           |  |                |        |           |              |  |        |            |  |                                                                                             
|Walnut Creek, California   |  |                | 9,522  |           |              |  | leased |            |  | June 2012 with 5-year renewal option                                                         |  | Manufacture of Hemodialysis machines and peritoneal dialysis
    cyclers; research and development; warehouse space
|Ogden, Utah                |  |                | 63,639 |           |              |  | owned  |            |  |                                                                                              |  | Manufacture polysulfone membranes and dialyzers and peritoneal
    dialysis solutions; research and development    
|Ogden, Utah                |  |                | 13,008 |           |              |  | leased |            |  | December 2010                                                                                |  | Warehouse                                                                                                          
|Ogden, Utah                |  |                | 2,072  |           |              |  | leased |            |  | December 2007                                                                                |  | Warehouse                                                                                                          
|Oregon, Ohio               |  |                | 13,934 |           |              |  | leased |            |  | April 2019                                                                                   |  | Manufacture of liquid hemodialysis concentrate solutions                                                           
|Perrysburg, Ohio           |  |                | 3,252  |           |              |  | leased |            |  | August 2008                                                                                  |  | Manufacture of dry hemodialysis concentrates                                                                       
|Livingston, California     |  |                | 6,689  |           |              |  | leased |            |  | Lease A expires February 2007, Lease B expires October 2011 with
    a 5-year renewal option |  | Manufacture of liquid hemodialysis concentrates and resupply                                                       
|Freemont, California       |  |                | 6,645  |           |              |  | leased |            |  | August 2007 with 2-year renewal option                                                       |  | Clinical laboratory testing  3 Buildings                                                                          
|Rockleigh, New Jersey      |  |                | 9,727  |           |              |  | leased |            |  | May 2012                                                                                     |  | Clinical laboratory testing                                                                                        
|Irving, Texas              |  |                | 6,506  |           |              |  | leased |            |  | December 2010                                                                                |  | Manufacture of liquid hemodialysis solution                                                                        
|Reynosa, Mexico            |  |                | 13,936 |           |              |  | leased |            |  | June 2013                                                                                    |  | Manufacture of bloodlines                                                                                          
|Reynosa, Mexico            |  |                | 4,645  |           |              |  | owned  |            |  |                                                                                              |  | Warehouse                                                                                                          
|Redmond, Washington        |  |                | 1,944  |           |              |  | leased |            |  | December 2008                                                                                |  | Manufacture of Prosorba Columns                                                                                    
|Province of Quebec, Canada |  |                | 1,914  |           |              |  | leased |            |  | April 2012                                                                                   |  | Plant Building #1  Manufacture of dry and liquid
    concentrates                                                 







|           |                          
|---------- | -------------------------
|Item 4. A. | Unresolved Staff Comments





|        |                                             
|------- | --------------------------------------------
|Item 5. | Operating and Financial Review and Prospects





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Critical Accounting Policies




Recoverability of Goodwill and Intangible Assets




Goodwill and Other Intangible
Assets,








Legal Contingencies








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Accounts Receivable and Allowance for Doubtful
Accounts
















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|                                                    |  |      |      |      |  |  |      | 
|--------------------------------------------------- |  | ---- | ---- | ---- |  |  | ---- | 
|Composition of Trade Accounts Receivables           |  |      |      |     
|in %, December 31                                   |  | 2006 |      | 2005
|                                                    |  |      |      |     
|U.S. Medicare and Medicaid Programs                 |  |      | 22%  |      |  |  | 22%  | 
|U.S. Commercial Payors                              |  |      | 26%  |      |  |  | 24%  | 
|U.S. Hospitals                                      |  |      | 4%   |      |  |  | 3%   | 
|Self-Pay of U.S. patients                           |  |      | 1%   |      |  |  | 1%   | 
|Other U.S.                                          |  |      | 3%   |      |  |  | 4%   | 
|International product customers and dialysis payors |  |      | 44%  |      |  |  | 46%  | 
|                                                    |  |      |      |      |  |  |      | 
|Total                                               |  |      | 100% |      |  |  | 100% | 
|                                                    |  |      |      |      |  |  |      | 

Self-Insurance Programs




Financial Condition and Results of Operations


Overview




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|   |                      
|-- | ---------------------
|A. | Results of Operations



|                              |               |                     |   |       |       |  |   |       |       |  |   |       |       | 
|----------------------------- | ------------- | ------------------- | - | ----- | ----- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                              |               | For the years ended |  
|                              |               | December 31,        |  
|                              |               |                     |  
|                              |               | 2006                |   |       | 2005  |  |   | 2004  |      
|                              |               |                     |   |       |       |  |   |       |      
|                              |               | (in millions)       |  
|Total revenue                 |               |                     |   |       |       |  |   |       |       |  |   |      
|                              | North America |                     | $ | 6,026 |       |  | $ | 4,578 |       |  | $ | 4,250 |      
|                              | International |                     |   | 2,534 |       |  |   | 2,250 |       |  |   | 2,019 |      
|                              |               |                     |   |       |       |  |   |       |      
|                              |               | Totals              |   |       | 8,560 |  |   |       | 6,828 |  |   |       | 6,269 | 
|                              |               |                     |   |       |       |  |   |       |      
|Inter-segment revenue         |               |                     |   |       |       |  |   |       |       |  |   |      
|                              | North America |                     |   | 1     |       |  |   | 1     |       |  |   | 2     |      
|                              | International |                     |   | 60    |       |  |   | 55    |       |  |   | 39    |      
|                              |               |                     |   |       |       |  |   |       |      
|                              |               | Totals              |   |       | 61    |  |   |       | 56    |  |   |       | 41    | 
|                              |               |                     |   |       |       |  |   |       |      
|Total net revenue             |               |                     |   |       |       |  |   |       |       |  |   |      
|                              | North America |                     |   | 6,025 |       |  |   | 4,577 |       |  |   | 4,248 |      
|                              | International |                     |   | 2,474 |       |  |   | 2,195 |       |  |   | 1,980 |      
|                              |               |                     |   |       |       |  |   |       |      
|                              |               | Totals              |   |       | 8,499 |  |   |       | 6,772 |  |   |       | 6,228 | 
|                              |               |                     |   |       |       |  |   |       |      
|Amortization and depreciation |               |                     |   |       |       |  |   |       |       |  |   |      
|                              | North America |                     |   | 187   |       |  |   | 140   |       |  |   | 129   |      
|                              | International |                     |   | 120   |       |  |   | 109   |       |  |   | 102   |      
|                              | Corporate     |                     |   | 2     |       |  |   | 2     |       |  |   | 2     |      
|                              |               |                     |   |       |       |  |   |       |      
|                              |               | Totals              |   |       | 309   |  |   |       | 251   |  |   |       | 233   | 
|                              |               |                     |   |       |       |  |   |       |      

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|                   |               |                     |      |     |       |   |      |      |     |   |      |     |     | 
|------------------ | ------------- | ------------------- | ---- | --- | ----- | - | ---- | ---- | --- | - | ---- | --- | --- | 
|                   |               | For the years ended |     
|                   |               | December 31,        |     
|                   |               |                     |     
|                   |               | 2006                |      |     | 2005  |   |      | 2004 |    
|                   |               |                     |      |     |       |   |      |      |    
|                   |               | (in millions)       |     
|Operating Income   |               |                     |      |     |       |   |      |      |     |   |      |    
|                   | North America |                     |      | 965 |       |   |      | 644  |     |   |      | 587 |    
|                   | International |                     |      | 440 |       |   |      | 362  |     |   |      | 300 |    
|                   | Corporate     |                     |      | (87 | )     |   |      | (67  | )   |   |      | (35 | )  
|                   |               |                     |      |     |       |   |      |      |    
|                   |               | Totals              |      |     | 1,318 |   |      |      | 939 |   |      |     | 852 | 
|                   |               |                     |      |     |       |   |      |      |    
|Interest income    |               |                     | 21   |     |       |   | 18   |      |     |   | 14   |    
|Interest expense   |               |                     | (372 | )   |       |   | (191 | )    |     |   | (197 | )  
|Income tax expense |               |                     | (413 | )   |       |   | (309 | )    |     |   | (266 | )  
|Minority interest  |               |                     | (17  | )   |       |   | (2   | )    |     |   | (1   | )  
|                   |               |                     |      |     |       |   |      |      |    
|Net income         |               | $                   | 537  |     |       | $ | 455  |      |     | $ | 402  |    
|                   |               |                     |      |     |       |   |      |      |    

Year ended December 31, 2006 compared to year ended
December 31, 2005


Highlights








Aktiengesellschaft Kommanditgesellschaft auf Aktien (FMC-AG FMC-AG FMC-AG




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|                                                           |  |                                  |       |   |      |   |     |             |  |  |    |  
|---------------------------------------------------------- |  | -------------------------------- | ----- | - | ---- | - | --- | ----------- |  |  | -- | -
|                                                           |  | For the years ended December 31, |      
|                                                           |  |                                  |      
|                                                           |  | 2006                             |       |   | 2005 |   |     | Change in % | 
|                                                           |  |                                  |       |   |      |   |     |             | 
|                                                           |  | (in millions)                    |       |   |     
|Operating income                                           |  | $                                | 1,318 |   |      | $ | 939 |             |  |  | 40 | %
|Transformation & Settlement                                |  |                                  | 2     |   |      |   | 22  |             |  |  |    |  
|Restructuring costs and in-process R&D                     |  |                                  | 35    |   |      |   |    |             |  |  |    |  
|Gain from FTC-related clinic divestment                    |  |                                  | (40   | ) |      |   |    |             |  |  |    |  
|Stock option compensation expense (FAS 123(R))             |  |                                  | 14    |   |      |   |    |             |  |  |    |  
|                                                           |  |                                  |       |   |      |   |     |             | 
|Operating income excluding one time effects and FAS 123(R) |  | $                                | 1,329 |   |      | $ | 961 |             |  |  | 38 | %
|                                                           |  |                                  |       |   |      |   |     |             | 



|                                                     |  |                     |     |  |      |   |     |             |  |  |    |  
|---------------------------------------------------- |  | ------------------- | --- |  | ---- | - | --- | ----------- |  |  | -- | -
|                                                     |  | For the years ended |    
|                                                     |  | December 31,        |    
|                                                     |  |                     |    
|                                                     |  | 2006                |     |  | 2005 |   |     | Change in % | 
|                                                     |  |                     |     |  |      |   |     |             | 
|                                                     |  | (in millions)       |     |  |     
|Net income                                           |  | $                   | 537 |  |      | $ | 455 |             |  |  | 18 | %
|Transformation & Settlement                          |  |                     | 1   |  |      |   | 17  |             |  |  |    |  
|Restructuring costs and in-process R&D               |  |                     | 23  |  |      |   |    |             |  |  |    |  
|Write-off FME prepaid financing fees                 |  |                     | 9   |  |      |   |    |             |  |  |    |  
|Loss from FTC-related clinic divestment              |  |                     | 4   |  |      |   |    |             |  |  |    |  
|Stock option compensation expense (FAS 123(R))       |  |                     | 10  |  |      |   |    |             |  |  |    |  
|                                                     |  |                     |     |  |      |   |     |             | 
|Net income excluding one time effects and FAS 123(R) |  | $                   | 584 |  |      | $ | 472 |             |  |  | 24 | %
|                                                     |  |                     |     |  |      |   |     |             | 

Consolidated Financials


Key Indicators for Consolidated Financials


|                                                          |  |      |            |   |      |             |            |             |  |  |                |   |  |  |    |  
|--------------------------------------------------------- |  | ---- | ---------- | - | ---- | ----------- | ---------- | ----------- |  |  | -------------- | - |  |  | -- | -
|                                                          |  |      |            |   |      | Change in % |           
|                                                          |  |      |            |   |      |             |           
|                                                          |  |      |            |   |      |             |            | at constant | 
|                                                          |  | 2006 |            |   | 2005 |             |            | as reported |  |  | exchange rates |  
|                                                          |  |      |            |   |      |             |            |             |  |  |                |  
|Number of treatments                                      |  |      | 23,739,733 |   |      |             | 19,732,753 |             |  |  | 20             | % |  |  |    |  
|Same market treatment growth in %                         |  |      | 4.2        | % |      |             | 4.6        | %           |  |  |                |   |  |  |    |  
|Revenue in $ million                                      |  |      | 8,499      |   |      |             | 6,772      |             |  |  | 26             | % |  |  | 25 | %
|Gross profit in % of revenue                              |  |      | 33.9       | % |      |             | 32.6       | %           |  |  |                |   |  |  |    |  
|Selling, general and administrative costs in % of revenue |  |      | 18.2       | % |      |             | 18.0       | %           |  |  |                |   |  |  |    |  
|Net income in $ million                                   |  |      | 537        |   |      |             | 455        |             |  |  | 18             | % |  |  |    |  



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53



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The following discussions pertain to our business segments
and the measures we use to manage these segments.


North America Segment


Key Indicators for North America Segment


|                                           |  |      |            |   |      |  |            |             |  |  |    |  
|------------------------------------------ |  | ---- | ---------- | - | ---- |  | ---------- | ----------- |  |  | -- | -
|                                           |  | 2006 |            |   | 2005 |  |            | Change in % | 
|                                           |  |      |            |   |      |  |            |             | 
|Number of treatments                       |  |      | 16,877,911 |   |      |  | 13,471,158 |             |  |  | 25 | %
|Same market treatment growth in %          |  |      | 2.1        | % |      |  | 3.3        | %           |  |  |    |  
|Revenue in $ million                       |  |      | 6,025      |   |      |  | 4,577      |             |  |  | 32 | %
|Depreciation and amortization in $ million |  |      | 187        |   |      |  | 140        |             |  |  | 34 | %
|Operating income in $ million              |  |      | 965        |   |      |  | 644        |             |  |  | 50 | %
|Operating income margin in %               |  |      | 16.0       | % |      |  | 14.1       | %           |  |  |    |  

Revenue










Operating income




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International Segment


Key Indicators for International Segment


|                                           |  |      |           |   |      |             |           |          |             |  |                |   |  |  |    |  
|------------------------------------------ |  | ---- | --------- | - | ---- | ----------- | --------- | -------- | ----------- |  | -------------- | - |  |  | -- | -
|                                           |  |      |           |   |      | Change in % |          
|                                           |  |      |           |   |      |             |          
|                                           |  |      |           |   |      | as          |           |          | at constant | 
|                                           |  | 2006 |           |   | 2005 |             |           | reported |             |  | exchange rates |  
|                                           |  |      |           |   |      |             |           |          |             |  |                |  
|Number of treatments                       |  |      | 6,861,822 |   |      |             | 6,261,595 |          |             |  | 10             | % |  |  |    |  
|Same market treatment growth in %          |  |      | 8.6       | % |      |             | 7.6       | %        |             |  |                |   |  |  |    |  
|Revenue in $ million                       |  |      | 2,474     |   |      |             | 2,195     |          |             |  | 13             | % |  |  | 12 | %
|Depreciation and amortization in $ million |  |      | 120       |   |      |             | 109       |          |             |  | 9              | % |  |  |    |  
|Operating income in $ million              |  |      | 440       |   |      |             | 362       |          |             |  | 22             | % |  |  |    |  
|Operating income margin in %               |  |      | 17.8      | % |      |             | 16.5      | %        |             |  |                |   |  |  |    |  

Revenue












Operating income




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Year ended December 31, 2005 compared to year ended
December 31, 2004


Highlights








Consolidated Financials


Key Indicators for Consolidated Financials


|                                                          |  |      |            |   |      |             |            |          |             |  |                |   |  |  |   |  
|--------------------------------------------------------- |  | ---- | ---------- | - | ---- | ----------- | ---------- | -------- | ----------- |  | -------------- | - |  |  | - | -
|                                                          |  |      |            |   |      | Change in % |           
|                                                          |  |      |            |   |      |             |           
|                                                          |  |      |            |   |      | as          |            |          | at constant | 
|                                                          |  | 2005 |            |   | 2004 |             |            | reported |             |  | exchange rates |  
|                                                          |  |      |            |   |      |             |            |          |             |  |                |  
|Number of treatments                                      |  |      | 19,732,753 |   |      |             | 18,794,109 |          |             |  | 5              | % |  |  |   |  
|Same store treatment growth in %                          |  |      | 4.6        | % |      |             | 3.6        | %        |             |  |                |   |  |  |   |  
|Revenue in $ million                                      |  |      | 6,772      |   |      |             | 6,228      |          |             |  | 9              | % |  |  | 8 | %
|Gross profit in % of revenue                              |  |      | 32.6       | % |      |             | 31.5       | %        |             |  |                |   |  |  |   |  
|Selling, general and administrative costs in % of revenue |  |      | 18.0       | % |      |             | 17.0       | %        |             |  |                |   |  |  |   |  
|Net income in $ million                                   |  |      | 455        |   |      |             | 402        |          |             |  | 13             | % |  |  |   |  











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The following discussions pertain to our business segments
and the measures we use to manage these segments.


North America Segment


Key Indicators for North America Segment


|                                           |  |      |            |   |      |  |            |             |  |  |    |  
|------------------------------------------ |  | ---- | ---------- | - | ---- |  | ---------- | ----------- |  |  | -- | -
|                                           |  | 2005 |            |   | 2004 |  |            | Change in % | 
|                                           |  |      |            |   |      |  |            |             | 
|Number of treatments                       |  |      | 13,471,158 |   |      |  | 12,998,661 |             |  |  | 4  | %
|Same store treatment growth in %           |  |      | 3.3        | % |      |  | 3.2        | %           |  |  |    |  
|Revenue in $ million                       |  |      | 4,577      |   |      |  | 4,248      |             |  |  | 8  | %
|Depreciation and amortization in $ million |  |      | 140        |   |      |  | 129        |             |  |  | 9  | %
|Operating income in $ million              |  |      | 644        |   |      |  | 587        |             |  |  | 10 | %
|Operating income margin in %               |  |      | 14.1       | % |      |  | 13.8       | %           |  |  |    |  

Revenue










DaVita




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Operating income




International Segment


Key Indicators for International Segment


|                                           |  |      |           |   |      |             |           |          |             |  |                |   |  |  |   |  
|------------------------------------------ |  | ---- | --------- | - | ---- | ----------- | --------- | -------- | ----------- |  | -------------- | - |  |  | - | -
|                                           |  |      |           |   |      | Change in % |          
|                                           |  |      |           |   |      |             |          
|                                           |  |      |           |   |      | as          |           |          | at constant | 
|                                           |  | 2005 |           |   | 2004 |             |           | reported |             |  | exchange rates |  
|                                           |  |      |           |   |      |             |           |          |             |  |                |  
|Number of treatments                       |  |      | 6,261,595 |   |      |             | 5,795,448 |          |             |  | 8              | % |  |  |   |  
|Same store treatment growth in %           |  |      | 7.6       | % |      |             | 4.1       | %        |             |  |                |   |  |  |   |  
|Revenue in $ million                       |  |      | 2,195     |   |      |             | 1,980     |          |             |  | 11             | % |  |  | 9 | %
|Depreciation and amortization in $ million |  |      | 109       |   |      |             | 102       |          |             |  | 8              | % |  |  |   |  
|Operating income in $ million              |  |      | 362       |   |      |             | 300       |          |             |  | 21             | % |  |  |   |  
|Operating income margin in %               |  |      | 16.5      | % |      |             | 15.2      | %        |             |  |                |   |  |  |   |  

Revenue












Operating income




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Corporate






Interest




Income Taxes






|   |                                
|-- | -------------------------------
|B. | Liquidity and Capital Resources

Liquidity






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Development of Days Sales Outstanding


|              |  |              |     |  |              |  |     | 
|------------- |  | ------------ | --- |  | ------------ |  | --- | 
|              |  | December 31, |     |  | December 31, | 
|              |  | 2006         |     |  | 2005         | 
|              |  |              |     |  |              | 
|North America |  |              | 59  |  |              |  | 63  | 
|International |  |              | 119 |  |              |  | 120 | 
|              |  |              |     |  |              | 
|Total         |  |              | 76  |  |              |  | 82  | 
|              |  |              |     |  |              | 

2006 Senior Credit Agreement






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a 5-year
    $1 billion revolving credit facility (of which up to
    $0.25 billion is available for letters of credit, up to
    $0.3 billion is available for borrowings in certain
    non-U.S.currencies,
    up to $0.15 billion is available as swing line loans in
    U.S. dollars, up to $0.25 billion is available as a
    competitive loan facility and up to $0.05 billion is
    available as swing line loans in certain
    non-U.S.currencies,
    the total of all of which cannot exceed $1 billion) which
    will be due and payable on March 31, 2011.                                                                                                                                                                                                                                                     
|
| |  | a 5-year term loan
    facility (Loan A) of $1.85 billion also
    scheduled to mature on March 31, 2011. The 2006 Senior
    Credit Agreement requires 19 quarterly payments on Loan A
    of $30 million each that permanently reduce the term loan
    facility. The repayments began on June 30, 2006 and
    continue through December 31, 2010. The remaining amount
    outstanding is due on March 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | a 7-year term loan
    facility (Loan B) of $1.75 billion
    scheduled to mature on March 31, 2013. The 2006 Senior
    Credit Agreement requires 28 quarterly payments on Loan B
    that permanently reduce the term loan facility. The repayment
    began June 30, 2006. The first 24 quarterly payments will
    be equal to one quarter of one percent (0.25%) of the original
    principal balance outstanding, payments 25 though 28 will be
    equal to twenty-three and one half percent (23.5%) of the
    original principal balance outstanding with the final payment
    due on March 31, 2013, subject to an early repayment
    requirement on March 1, 2011 if the Trust Preferred
    Securities due June 15, 2011 are not repaid or refinanced
    or their maturity is not extended prior to that date.







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Other









  8-year




Schuldscheindarlehen    




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20-F








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Dividends


     


Analysis of Cash Flow


Year ended December 31, 2006 compared to year ended
December 31, 2005


Operations




Investing


®




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Financing




Year ended December 31, 2005 compared to year ended
December 31, 2004


Operations




Investing






Financing






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Obligations




|                                   |  |       |       |                           |        |   |     |           |  |   |              |  |  |   |       | 
|---------------------------------- |  | ----- | ----- | ------------------------- | ------ | - | --- | --------- |  | - | ------------ |  |  | - | ----- | 
|                                   |  |       |       | Payments due by period of |       
|                                   |  |       |       |                           |       
|Contractual Cash Obligations       |  | Total |       |                           | 1 Year |   |     | 2-5 Years |  |   | Over 5 Years | 
|                                   |  |       |       |                           |        |   |     |           |  |   |              | 
|in millions                        |  |       |       |                           |        |   |     |          
|Trust Preferred Securities         |  | $     | 1,254 |                           |        | $ |    |           |  | $ | 1,254        |  |  | $ |      | 
|Long Term Debt                     |  |       | 3,981 |                           |        |   | 158 |           |  |   | 2,076        |  |  |   | 1,747 | 
|Capital Lease Obligations          |  |       | 8     |                           |        |   | 2   |           |  |   | 4            |  |  |   | 2     | 
|Operating Leases                   |  |       | 1,698 |                           |        |   | 308 |           |  |   | 882          |  |  |   | 508   | 
|Unconditional Purchase Obligations |  |       | 235   |                           |        |   | 131 |           |  |   | 95           |  |  |   | 9     | 
|Other Long-term Obligations        |  |       | 16    |                           |        |   | 10  |           |  |   | 6            |  |  |   |      | 
|Letters of Credit                  |  |       | 85    |                           |        |   | 85  |           |  |   |             |  |  |   |      | 
|                                   |  |       |       |                           |        |   |     |           |  |   |              | 
|                                   |  | $     | 7,277 |                           |        | $ | 694 |           |  | $ | 4,317        |  |  | $ | 2,266 | 
|                                   |  |       |       |                           |        |   |     |           |  |   |              | 

|                                    |  |       |       |                          |        |   |     |           |  |   |              |  |  |   |   | 
|----------------------------------- |  | ----- | ----- | ------------------------ | ------ | - | --- | --------- |  | - | ------------ |  |  | - | - | 
|                                    |  |       |       | Expiration per period of
|                                    |  |       |       |                         
|Available Sources of Liquidity      |  | Total |       |                          | 1 Year |   |     | 2-5 Years |  |   | Over 5 Years
|                                    |  |       |       |                          |        |   |     |           |  |   |             
|in millions                         |  |       |       |                          |        |   |     |          
|Accounts receivable
    facility(a) |  | $     | 384   |                          |        | $ | 384 |           |  | $ |             |  |  | $ |  | 
|Unused Senior Credit Lines          |  |       | 932   |                          |        |   |    |           |  |   | 932          |  |  |   |  | 
|Other Unused Lines of Credit        |  |       | 87    |                          |        |   | 87  |           |  |   |             |  |  |   |  | 
|                                    |  |       |       |                          |        |   |     |           |  |   |              | 
|                                    |  | $     | 1,403 |                          |        | $ | 471 |           |  | $ | 932          |  |  | $ |  | 
|                                    |  |       |       |                          |        |   |     |           |  |   |              | 






|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|(a) | Subject to availability of sufficient accounts receivable
    meeting funding criteria.



Borrowings













65



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  


Outlook




|                                      |  |                            |  |                           
|------------------------------------- |  | -------------------------- |  | --------------------------
|                                      |  | 2007                       |  | 2008                      
|                                      |  |                            |  |                           
|Revenue Growth                        |  | 11% to $9.4 billion        |  | 6%-9%                     
|Net Income*                           |  | 18-21%                     |  | >10%                      
|Acquisitions and capital expenditures |  | approximately $650 million |  | approximately $650 million
|Effective tax rate                    |  | approximately 39%          |  | approximately 39%         
|Debt/EBITDA                           |  | under 3.0                  |  | under 3.0                 
|Dividend                              |  | continuing increases       |  | continuing increases      






|  |                                                                                                                                                                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | For purposes of this outlook, 2006 net income was adjusted
    for one time effects (see the reconciliation of net income in
    Item 5.A.  Results of Operations 
    Highlights), except for stock option compensation expense
    (FAS 123(R)), to $574 million.

Debt covenant disclosure  EBITDA




66



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|                                                      |  |                                  |           |   |      |   |           |      |  |   |           |  
|----------------------------------------------------- |  | -------------------------------- | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                                                      |  | For the years ended December 31, |          
|                                                      |  |                                  |          
|                                                      |  | 2006                             |           |   | 2005 |   |           | 2004 | 
|in thousands                                          |  |                                  |           |   |      |   |           |      | 
|Total EBITDA                                          |  | $                                | 1,626,825 |   |      | $ | 1,190,370 |      |  | $ | 1,084,931 |  
|Settlement of shareholder proceedings                 |  |                                  | (888      | ) |      |   | 7,335     |      |  |   |          |  
|Interest expense (net of interest income)             |  |                                  | (351,246  | ) |      |   | (173,192  | )    |  |   | (183,746  | )
|Income tax expense, net                               |  |                                  | (413,489  | ) |      |   | (308,748  | )    |  |   | (265,415  | )
|Change in deferred taxes, net                         |  |                                  | 10,904    |   |      |   | (3,675    | )    |  |   | 34,281    |  
|Changes in operating assets and liabilities           |  |                                  | 58,294    |   |      |   | (45,088   | )    |  |   | 141,979   |  
|Tax payments related to divestitures and acquisitions |  |                                  | (63,517   | ) |      |   |          |      |  |   |          |  
|Compensation Expense                                  |  |                                  | 16,610    |   |      |   | 1,363     |      |  |   | 1,751     |  
|Cash inflow from Hedging                              |  |                                  | 10,908    |   |      |   |          |      |  |   | 14,514    |  
|Other items, net                                      |  |                                  | 13,429    |   |      |   | 1,939     |      |  |   | (452      | )
|                                                      |  |                                  |           |   |      |   |           |      | 
|Net cash provided by operating activities             |  | $                                | 907,830   |   |      | $ | 670,304   |      |  | $ | 827,843   |  
|                                                      |  |                                  |           |   |      |   |           |      | 

Recently Issued Accounting Standards




Accounting for Uncertainty in Income
Taxes  an interpretation of FASB Statement
No. 109 Accounting for Income Taxes Accounting for Income Taxes.




C.  Research and Development




67



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68



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|   |                  
|-- | -----------------
|D. | Trend information



69



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|        |                                           
|------- | ------------------------------------------
|Item 6. | Directors, Senior Management and Employees



|   |                                
|-- | -------------------------------
|A. | Directors and senior management

General








The General Partners Supervisory Board










|                                                       |  |              |    | 
|------------------------------------------------------ |  | ------------ | -- | 
|                                                       |  | Age as of    |   
|                                                       |  | December 31, |   
|Name                                                   |  | 2006         |   
|                                                       |  |              |   
|Dr. Ulf M. Schneider, Chairman                         |  |              | 41 | 
|Dr. Dieter Schenk, Deputy Chairman                     |  |              | 54 | 
|Dr. Gerd
    Krick(1)                                  |  |              | 68 | 
|Walter L.
    Weisman(1)(2)                            |  |              | 71 | 
|John Gerhard
    Kringel(1)(2)                         |  |              | 67 | 
|William P.
    Johnston(1)(2)(since August 30, 2006)   |  |              | 62 | 
|Prof. Dr. Bernd
    Fahrholz(1)(until August 30, 2006) |  |              | 59 | 

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| | 
| | 
| | 



| |     |                                                           
| | --- | ----------------------------------------------------------
| | (1) | Members of the Audit Committee                            
|
| | (2) | Independent director for purposes of our pooling agreement











71



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The General Partners Management Board






|                   |  |           |    |          |  |                                                                                                                             |  |  |      | 
|------------------ |  | --------- | -- | -------- |  | --------------------------------------------------------------------------------------------------------------------------- |  |  | ---- | 
|                   |  | Age as of |    |          |  | Year                                                                                                                       
|                   |  | Dec 31,   |    |          |  | Term                                                                                                                       
|Name               |  | 2006      |    | Position |  | Expires                                                                                                                    
|                   |  |           |    |          |  |                                                                                                                            
|Dr. Ben J. Lipps   |  |           | 66 |          |  | Chairman of the Management Board, Chief Executive Officer of
    FMC-AG & Co. KGaA                                          |  |  | 2008 | 
|Roberto Fusté      |  |           | 54 |          |  | Chief Executive Officer for Asia Pacific                                                                                    |  |  | 2011 | 
|Dr. Emanuele Gatti |  |           | 51 |          |  | Chief Executive Officer for Europe, Middle East, Africa and
    Latin America                                               |  |  | 2010 | 
|Lawrence Rosen     |  |           | 49 |          |  | Chief Financial Officer                                                                                                     |  |  | 2011 | 
|Dr. Rainer Runte   |  |           | 47 |          |  | General Counsel and Chief Compliance Officer                                                                                |  |  | 2010 | 
|Rice Powell        |  |           | 51 |          |  | Co-Chief Executive Officer, Fresenius Medical Care North America
    and President Products & Hospital Group                |  |  | 2011 | 
|Mats Wahlstrom     |  |           | 52 |          |  | Co-Chief Executive Officer, Fresenius Medical Care North America
    and President Fresenius Medical Services North America |  |  | 2011 | 



72



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73



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The Supervisory Board of FMC-AG & Co. KGaA










|   |             
|-- | ------------
|B. | Compensation

Compensation of the Management Board of Management
AG






74



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Compensation Report of the Management Board


The basis for the Compensation of the management board was,
in its structure and amount, determined by the supervisory board
of Fresenius Medical Care Management AG.








| |   |                                                                
| | - | ---------------------------------------------------------------
| |  | non-performance-related compensation (basic salary)            
|
| |  | performance-related compensation (variable bonus)              
|
| |  | long-term incentive elements (stock options, convertible bonds)









75



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|                   |  |                      |       |              |  |                       |     |          |  |  |       |  |  |  |        | 
|------------------ |  | -------------------- | ----- | ------------ |  | --------------------- | --- | -------- |  |  | ----- |  |  |  | ------ | 
|                   |  |                      |       | Performance  |  | Cash Compensation    
|                   |  | Non-Performance      |       | Related      |  | (without long-term   
|                   |  | Related Compensation |       | Compensation |  | incentive components)
|                   |  |                      |       |              |  |                      
|                   |  | Salary(1),(2)        |       | Other(3)     |  | Bonus(1),(2)          |     |         
|                   |  | ($000s)             |       | ($000s)     |  | ($000s)              |     | ($000s)
|Dr. Ben Lipps      |  |                      | 1,050 |              |  |                       | 189 |          |  |  | 2,043 |  |  |  | 3,282  | 
|Roberto Fusté      |  |                      | 370   |              |  |                       | 221 |          |  |  | 421   |  |  |  | 1,012  | 
|Dr. Emanuele Gatti |  |                      | 584   |              |  |                       | 48  |          |  |  | 1,177 |  |  |  | 1,809  | 
|Rice Powell        |  |                      | 700   |              |  |                       | 20  |          |  |  | 1,267 |  |  |  | 1,987  | 
|Lawrence A. Rosen  |  |                      | 424   |              |  |                       | 105 |          |  |  | 935   |  |  |  | 1,464  | 
|Dr. Rainer Runte   |  |                      | 414   |              |  |                       | 39  |          |  |  | 760   |  |  |  | 1,213  | 
|Mats Wahlstrom     |  |                      | 800   |              |  |                       | 17  |          |  |  | 1,448 |  |  |  | 2,265  | 
|Total:             |  |                      | 4,342 |              |  |                       | 639 |          |  |  | 8,051 |  |  |  | 13,032 | 






|    |                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------
|(1) | Up to February 9, 2006 payment by Fresenius Medical Care AG                                                                             
|   
|(2) | From February 9, 2006 payment by Fresenius Medical Care
    Management AG as general partner in Fresenius Medical Care
    AG & Co. KGaA
|   
|(3) | Includes, insurance premiums, private use of company cars,
    contributions to pension and health insurance and other benefits.        









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|                   |  |                           |         |                     |  |          |       |  |  |  |       | 
|------------------ |  | ------------------------- | ------- | ------------------- |  | -------- | ----- |  |  |  | ----- | 
|                   |  | Components with Long-term
|                   |  | Incentive Effect         
|                   |  |                          
|                   |  |                           |         | Share-price Related
|                   |  | Stock Options             |         | Compensation       
|                   |  |                           |         |                    
|                   |  | Number                    |         | Value               |  | Value   
|                   |  |                           |         | ($000s)            |  | ($000s)
|Dr. Ben Lipps      |  |                           | 33,200  |                     |  |          | 1,237 |  |  |  | 993   | 
|Roberto Fusté      |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 0     | 
|Dr. Emanuele Gatti |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 360   | 
|Rice Powell        |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 568   | 
|Lawrence A. Rosen  |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 401   | 
|Dr. Rainer Runte   |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 392   | 
|Mats Wahlstrom     |  |                           | 16,600  |                     |  |          | 619   |  |  |  | 648   | 
|Total:             |  |                           | 132,800 |                     |  |          | 4,951 |  |  |  | 3,362 | 

 








|                   |  |                       |        |                      |  |                         |       |  |  |  |        | 
|------------------ |  | --------------------- | ------ | -------------------- |  | ----------------------- | ----- |  |  |  | ------ | 
|                   |  | Cash Compensation     |        | Expenses 2006        |  | Compensation (including
|                   |  | (without long-term    |        | for Long-term        |  | Long-term Incentive    
|                   |  | incentive components) |        | Incentive Components |  | Components) Total      
|($000s)           |  |                       |        |                      |  |                        
|Dr. Ben Lipps      |  |                       | 3,282  |                      |  |                         | 483   |  |  |  | 3,765  | 
|Roberto Fusté      |  |                       | 1,012  |                      |  |                         | 265   |  |  |  | 1,277  | 
|Dr. Emanuele Gatti |  |                       | 1,809  |                      |  |                         | 265   |  |  |  | 2,074  | 
|Rice Powell        |  |                       | 1,987  |                      |  |                         | 224   |  |  |  | 2,211  | 
|Lawrence A. Rosen  |  |                       | 1,464  |                      |  |                         | 246   |  |  |  | 1,710  | 
|Dr. Rainer Runte   |  |                       | 1,213  |                      |  |                         | 264   |  |  |  | 1,477  | 
|Mats Wahlstrom     |  |                       | 2,265  |                      |  |                         | 278   |  |  |  | 2,543  | 
|Total:             |  |                       | 13,032 |                      |  |                         | 2,025 |  |  |  | 15,057 | 



Commitments to Members of the Management Board for the
Event of the Ending of their Appointment




77



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Miscellaneous








Compensation of the Supervisory Board of Fresenius Medical
Care & Co KGaA and Supervisory Board of Management
AG




78



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|   |                
|-- | ---------------
|C. | Board Practices





| |   |                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | overseeing managements conduct or our financial reporting
    process and the internal accounting and financial control
    systems and auditing of our financial statements;                                           
|
| |  | monitoring our internal controls risk program;                                                                                                                                                                           
|
| |  | monitoring the independence and performance of our outside
    auditors;                                                                                                                                                 
|
| |  | providing an avenue of communication among the outside auditors,
    management and the Supervisory Board;                                                                                                               
|
| |  | retaining the services of our independent auditors (subject to
    the approval by our shareholders at our Annual General Meeting)
    and approval of their fees; and                                                   
|
| |  | pre-approval of all audit and non-audit services performed by
    KPMG Deutsche Treuhand-Gesellschaft AG
    Wirtschaftsprüfungsgesellschaft, the accounting firm which
    audits our consolidated financial statements.





| |   |                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A joint committee (the Joint Committee) (gemeinsamer
    Ausschuss) of the supervisory boards of Management AG and FMC-AG
    & Co. KGaA consisting of two members designated by each
    supervisory board to advise and decide on certain extraordinary
    management measures, including



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | transactions between us and Fresenius AG with a value in excess
    of 0.25% of our consolidated revenue, and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | acquisitions and sales of significant participations and parts
    of our business, the spin-off of significant parts of our
    business, initial public offerings of significant subsidiaries
    and similar matters. A matter is significant for
    purposes of this approval requirement if 40% of our consolidated
    revenues, our consolidated balance sheet total assets or
    consolidated profits, determined by reference to the arithmetic
    average of the said amounts shown in our audited consolidated
    accounts for the previous three fiscal years, are affected by
    the matter.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | An Audit and Corporate Governance Committee within the
    Supervisory Board of FMC-AG & Co. KGaA consisting of three
    members, at least two of whom shall be persons with no
    significant business, professional or personal connection with
    FMC-AG & Co. KGaA or any of our affiliates, apart from
    membership on our supervisory board or the supervisory board of
    Management AG or Fresenius AG. The Audit and Corporate
    Governance Committee will be responsible for reviewing the
    report of our general partner on relations with related parties
    and for reporting to the overall supervisory board thereon.

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Governance Matters


10A-3


The Legal Structure of FMC-AG & Co. KGaA












80



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Management and Oversight







General Partner










81



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| |   |                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The acquisition, disposal and encumbrance of real property if
    the value or the amount to be secured exceeds a specified
    threshold
    (5 million);                                
|
| |  | The acquisition, formation, disposal or encumbrance of an equity
    participation in other enterprises if the value of the
    transaction exceeds a specified threshold
    (5 million);
|
| |  | The adoption of new or the abandonment of existing lines of
    business or establishments;                                                                                                
|
| |  | Conclusion, amendment and termination of affiliation
    agreements; and                                                                                                                   
|
| |  | Certain inter-company legal transactions.                                                                                                                                                  



Supervisory Board






82



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General Meeting












The Articles of Association of FMC  AG &
Co. KGaA




83



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Organization of the Company








Einheits-KGaA


84



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##### Table of Contents







Annual Financial Statement and Allocation of
Profits






Articles of Association of Management AG







|   |          
|-- | ---------
|D. | Employees



|              |                   |      |        |        |      |  |        |        |  |  |        |        | 
|------------- | ----------------- | ---- | ------ | ------ | ---- |  | ------ | ------ |  |  | ------ | ------ | 
|              |                   | 2006 |        |        | 2005 |  |        | 2004   | 
|              |                   |      |        |        |      |  |        |        | 
|North America |                   |      |        |        |      |  |        |        |  |  |        |       
|              | Dialysis Care     |      |        | 31,431 |      |  |        | 24,737 |  |  |        | 23,389 | 
|              | Dialysis Products |      |        | 6,110  |      |  |        | 5,392  |  |  |        | 5,229  | 
|              |                   |      |        |        |      |  |        |        | 
|              |                   |      | 37,541 |        |      |  | 30,129 |        |  |  | 28,618 |       
|              |                   |      |        |        |      |  |        |        | 
|International |                   |      |        |        |      |  |        |        |  |  |        |       
|              | Dialysis Care     |      |        | 11,663 |      |  |        | 10,626 |  |  |        | 9,608  | 
|              | Dialysis Products |      |        | 7,599  |      |  |        | 6,766  |  |  |        | 6,300  | 
|              |                   |      |        |        |      |  |        |        | 
|              |                   |      | 19,262 |        |      |  | 17,392 |        |  |  | 15,908 |       
|              |                   |      |        |        |      |  |        |        | 
|              | Total Company     |      |        | 56,803 |      |  |        | 47,521 |  |  |        | 44,526 | 
|              |                   |      |        |        |      |  |        |        | 



85



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|   |                
|-- | ---------------
|E. | Share ownership




Options to Purchase Our Securities


Stock Option and Other Share Based Plans


Incentive plan




Fresenius Medical Care AG & Co. KGaA Stock Option
Plan 2006


 


3-year


86



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 




 











Item 7.     Major
Shareholders and Related Party Transactions


A.  Major Shareholders


Security Ownership of Certain Beneficial Owners of
Fresenius Medical Care




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(Wertpapierhandelsgesetz) (amtlicher Handel)




Security Ownership of Certain Beneficial Owners of
Fresenius AG


amtlicher
Handel




B.  Related party transactions




88



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| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the term we (or us) and our affiliates refers
    onlyto Fresenius Medical Care AG & Co. KGaA and
    its subsidiaries; and                                                        
|
| |  | the term Fresenius AG and its affiliates refers
    onlyto Fresenius AG and affiliates of Fresenius AG
    other thanFresenius Medical Care AG & Co. KGaA
    and its subsidiaries.

Real Property Lease





Trademarks






| |   |                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to use the Fresenius Medical Care mark in the then
    current National Medical Care non-renal business if it is used
    as part of Fresenius Medical Care together with one
    or more descriptive words, such as Fresenius Medical Care
    Home Care or Fresenius Medical Care
    Diagnostics;
|
| |  | to use the F logo mark in the National Medical Care
    non-renal business, with the consent of Fresenius AG. That
    consent will not be unreasonably withheld if the mark using the
    logo includes one or more additional descriptive words or
    symbols; and                                     
|
| |  | to use Fresenius Medical Care as a trade name in
    both the renal business and the National Medical Care non-renal
    business.                                                                                                                                                                        



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Other Intellectual Property




Supply Agreements










90



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##### Table of Contents





Services Agreement






Financing




Other Interests






Products




General Partner Reimbursement




91



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





Item 8.     Financial
information






|       |                  
|------ | -----------------
|8.A.7. | Legal Proceedings



Commercial Litigation








03-1431,


92



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Other Litigation and Potential Exposures


Indiana State
District Council of Laborers and Hod Carriers Pension Fund, on
behalf of itself and all others similarly situated and
derivatively on behalf of RCG, Plaintiff, vs. RCG, Gary
Brukardt, William P. Johnston, Harry R. Jacobson, Joseph C.
Hutts, William V. Lapham, Thomas A. Lowery, Stephen D. McMurray,
Peter J. Grua, C. Thomas Smith, Ronald Hinds, Raymond Hakim and
R. Dirk Allison, Defendants.






93



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Accrued Special Charge for Legal Matters




94



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|       |                
|------ | ---------------
|8.A.8. | Dividend Policy

Handelsgesetzbuch HGB  


Depotbank






|                 |  |      |       |  |      |  |       |      |  |  |       |  |  |  |       | 
|---------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|Per Share Amount |  | 2006 |       |  | 2005 |  |       | 2004 |  |  | 2003  | 
|                 |  |      |       |  |      |  |       |      |  |  |       | 
|Preference share |  |      | 1.29 |  |      |  | 1.18 |      |  |  | 1.08 |  |  |  | 1.00 | 
|Ordinary share   |  |      | 1.23 |  |      |  | 1.12 |      |  |  | 1.02 |  |  |  | 0.94 | 

 









|        |                              
|------- | -----------------------------
|Item 9. | The Offer and Listing Details



|            |                                                                             
|----------- | ----------------------------------------------------------------------------
|A.4. and C. | Information regarding the trading markets for price history
    of our stock

Trading Markets




95



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Amtlicher
Markt US-GAAP);




Trading on the Frankfurt Stock Exchange








| |   |                                                    
| | - | ---------------------------------------------------
| |  | permanent quotation during trading hours           
|
| |  | best price execution (in terms of spread and speed)
|
| |  | full execution.                                    



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##### Table of Contents











Bundesanstalt
für Finanzdienstleistungsaufsicht Wertpapierhandelsgesetz




| |      |  |  |                    |  |  |                      |  |  |      |        |  |     |  |        |  |  |  |       | 
| | ---- |  |  | ------------------ |  |  | -------------------- |  |  | ---- | ------ |  | --- |  | ------ |  |  |  | ----- | 
| |      |  |  | Price per          |  |  | Price per            | 
| |      |  |  | ordinary share () |  |  | preference share () | 
| |      |  |  |                    |  |  |                      | 
| |      |  |  | High               |  |  | Low                  |  |  | High |        |  | Low | 
| |      |  |  |                    |  |  |                      |  |  |      |        |  |     | 
| | 2007 |  |  | January            |  |  | 105.30               |  |  |      | 101.00 |  |     |  | 100.00 |  |  |  | 95.80 | 
| | 2006 |  |  | December           |  |  | 108.10               |  |  |      | 99.40  |  |     |  | 101.50 |  |  |  | 92.80 | 
| |      |  |  | November           |  |  | 106.50               |  |  |      | 101.20 |  |     |  | 99.00  |  |  |  | 93.40 | 
| |      |  |  | October            |  |  | 108.90               |  |  |      | 100.40 |  |     |  | 100.60 |  |  |  | 92.20 | 
| |      |  |  | September          |  |  | 103.60               |  |  |      | 99.20  |  |     |  | 96.80  |  |  |  | 91.00 | 
| |      |  |  | August             |  |  | 103.50               |  |  |      | 94.30  |  |     |  | 97.00  |  |  |  | 87.50 | 
| | 2006 |  |  | Fourth Quarter     |  |  | 108.90               |  |  |      | 99.40  |  |     |  | 101.50 |  |  |  | 92.20 | 
| |      |  |  | Third Quarter      |  |  | 103.60               |  |  |      | 88.70  |  |     |  | 97.00  |  |  |  | 81.90 | 
| |      |  |  | Second Quarter     |  |  | 100.00               |  |  |      | 82.50  |  |     |  | 95.10  |  |  |  | 75.10 | 
| |      |  |  | First Quarter      |  |  | 99.20                |  |  |      | 85.80  |  |     |  | 94.00  |  |  |  | 75.90 | 
| | 2005 |  |  | Fourth Quarter     |  |  | 89.45                |  |  |      | 74.25  |  |     |  | 79.31  |  |  |  | 63.50 | 
| |      |  |  | Third Quarter      |  |  | 76.41                |  |  |      | 69.54  |  |     |  | 65.70  |  |  |  | 56.39 | 
| |      |  |  | Second Quarter     |  |  | 70.67                |  |  |      | 60.53  |  |     |  | 57.60  |  |  |  | 43.90 | 
| |      |  |  | First Quarter      |  |  | 68.23                |  |  |      | 57.37  |  |     |  | 48.95  |  |  |  | 41.60 | 
| | 2006 |  |  | Annual             |  |  | 108.90               |  |  |      | 82.50  |  |     |  | 101.50 |  |  |  | 75.10 | 
| | 2005 |  |  | Annual             |  |  | 89.45                |  |  |      | 57.37  |  |     |  | 79.31  |  |  |  | 41.60 | 
| | 2004 |  |  | Annual             |  |  | 63.63                |  |  |      | 49.46  |  |     |  | 45.45  |  |  |  | 33.73 | 
| | 2003 |  |  | Annual             |  |  | 57.00                |  |  |      | 38.00  |  |     |  | 41.00  |  |  |  | 28.50 | 
| | 2002 |  |  | Annual             |  |  | 73.00                |  |  |      | 19.98  |  |     |  | 53.90  |  |  |  | 15.17 | 

 


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Trading on the New York Stock Exchange




| |      |  |  |                  |  |  |                    |  |  |      |       |  |     |  |       |  |  |  |       | 
| | ---- |  |  | ---------------- |  |  | ------------------ |  |  | ---- | ----- |  | --- |  | ----- |  |  |  | ----- | 
| |      |  |  | Price per        |  |  | Price per          | 
| |      |  |  | ordinary ADS ($) |  |  | preference ADS ($) | 
| |      |  |  |                  |  |  |                    | 
| |      |  |  | High             |  |  | Low                |  |  | High |       |  | Low | 
| |      |  |  |                  |  |  |                    |  |  |      |       |  |     | 
| | 2007 |  |  | January(1)       |  |  | 45.30              |  |  |      | 43.69 |  |     |  | 41.00 |  |  |  | 41.00 | 
| | 2006 |  |  | December         |  |  | 47.60              |  |  |      | 44.20 |  |     |  | 40.00 |  |  |  | 38.50 | 
| |      |  |  | November         |  |  | 45.50              |  |  |      | 44.20 |  |     |  | 38.50 |  |  |  | 38.50 | 
| |      |  |  | October          |  |  | 45.80              |  |  |      | 42.10 |  |     |  | 38.50 |  |  |  | 38.00 | 
| |      |  |  | September        |  |  | 44.00              |  |  |      | 42.20 |  |     |  | 38.00 |  |  |  | 38.00 | 
| |      |  |  | August           |  |  | 44.50              |  |  |      | 40.40 |  |     |  | 38.00 |  |  |  | 33.30 | 
| | 2006 |  |  | Fourth Quarter   |  |  | 47.60              |  |  |      | 42.10 |  |     |  | 40.00 |  |  |  | 38.00 | 
| |      |  |  | Third Quarter    |  |  | 44.50              |  |  |      | 37.80 |  |     |  | 38.00 |  |  |  | 33.30 | 
| |      |  |  | Second Quarter   |  |  | 41.40              |  |  |      | 34.50 |  |     |  | 34.80 |  |  |  | 33.30 | 
| |      |  |  | First Quarter    |  |  | 40.00              |  |  |      | 34.90 |  |     |  | 34.80 |  |  |  | 31.00 | 
| | 2005 |  |  | Fourth Quarter   |  |  | 35.22              |  |  |      | 29.71 |  |     |  | 31.20 |  |  |  | 25.30 | 
| |      |  |  | Third Quarter    |  |  | 31.49              |  |  |      | 27.90 |  |     |  | 26.75 |  |  |  | 22.90 | 
| |      |  |  | Second Quarter   |  |  | 28.45              |  |  |      | 26.05 |  |     |  | 22.80 |  |  |  | 19.50 | 
| |      |  |  | First Quarter    |  |  | 29.94              |  |  |      | 25.09 |  |     |  | 21.40 |  |  |  | 18.16 | 
| | 2006 |  |  | Annual           |  |  | 47.60              |  |  |      | 34.50 |  |     |  | 40.00 |  |  |  | 31.00 | 
| | 2005 |  |  | Annual           |  |  | 35.22              |  |  |      | 25.09 |  |     |  | 31.20 |  |  |  | 18.16 | 
| | 2004 |  |  | Annual           |  |  | 27.23              |  |  |      | 20.41 |  |     |  | 19.15 |  |  |  | 13.86 | 
| | 2003 |  |  | Annual           |  |  | 23.54              |  |  |      | 13.20 |  |     |  | 16.68 |  |  |  | 9.85  | 
| | 2002 |  |  | Annual           |  |  | 21.60              |  |  |      | 6.70  |  |     |  | 15.70 |  |  |  | 4.90  | 













|         |                       
|-------- | ----------------------
|Item 10. | Additional information



|   |                        
|-- | -----------------------
|B. | Articles of Association

Kommanditgesellschaft auf Aktien (Amtsgericht) (Sitz) +49-6172-609-0.




Corporate Purposes






| |   |                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the development, production and distribution of as well as the
    trading in health care products, systems and procedures,
    including dialysis;

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| |   |                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the projecting, planning, establishment, acquisition and
    operation of health care businesses, including, dialysis
    centers, also in separate enterprises or through third parties
    as well as the participation in such dialysis centers;
|
| |  | the development, production and distribution of other
    pharmaceutical products and the provision of services in this
    field;                                                                                                                 
|
| |  | the provision of advice in the medical and pharmaceutical areas
    as well as scientific information and documentation;                                                                                                                           
|
| |  | the provision of laboratory services for dialysis and
    non-dialysis patients and homecare medical services.                                                                                                                                     



General Information Regarding Our Share Capital


 Stückaktien Stückaktien


Sammelurkunden


General provisions on Increasing the Capital of Stock
Corporations and Partnerships Limited by Shares










Voting Rights




99



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Dividend Rights




Bilanzgewinn Handelsgesetzbuch HGB elektronischer Bundesanzeiger   




Liquidation Rights


Aktiengesetz


100



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Pre-emption Rights


Aktiengesetz




| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | we increase our share capital against contributions in cash;                                                              
|
| |  | the amount of the capital increase does not exceed 10% of our
    existing share capital; and                             
|
| |  | the issue price of the new shares is not significantly lower
    than the price for the shares quoted on a stock exchange.

Exclusion of Minority Shareholders


Ertragswertmethode




General Meeting




Amendments to the Articles of Association




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Description of American Depositary Receipts


General














Share Dividends and Other Distributions








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cash. The depositary shall convert cash distributions
    from foreign currency to U.S. dollars if this is
    permissible and can be done on a reasonable basis. The
    depositary will endeavor to distribute cash in a practicable
    manner, and may deduct any taxes or other governmental charges
    required to be withheld, any expenses of converting foreign
    currency and transferring funds to the United States, and
    certain other fees and expenses In addition, before making a
    distribution the depositary will deduct any taxes

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | withheld. If exchange rates fluctuate during a time when the
    depositary cannot convert a foreign currency, investors may lose
    some or all of the value of the distribution.                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Shares. If we make a distribution in shares, the
    depositary will deliver additional ADSs to represent the
    distributed shares, unless the number of ordinary shares or
    preference shares represented by our ADSs is adjusted in
    connection with the distribution. Only whole ADSs will be
    issued. Any shares which would result in fractional ADSs will be
    sold and the net proceeds will be distributed to the ADS holders
    otherwise entitled to receive fractional ADSs.                                                                  
|
| |  | Rights to receive additional shares. In the case of a
    distribution of pre-emption rights to subscribe for ordinary
    shares or preference shares, or other subscription rights, if we
    provide satisfactory evidence that the depositary may lawfully
    distribute the rights, the depositary may arrange for ADS
    holders to instruct the depositary as to the exercise of the
    rights. However, if we do not furnish the required evidence or
    if the depositary determines it is not practical to distribute
    the rights, the depositary may:



| |   |                                                                               
| | - | ------------------------------------------------------------------------------
| |  | sell the rights if practicable and distribute the net proceeds
    as cash, or
|
| |  | allow the rights to lapse, in which case ADS holders will
    receive nothing.





| |   |                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------
| |  | Other Distributions. If we make a distribution of
    securities or property other than those described above, the
    depositary may either:



| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | distribute the securities or property in any manner it deems
    fair and equitable;                       
|
| |  | sell the securities or property and distribute any net proceeds
    in the same way it distributes cash; or
|
| |  | hold the distributed property in which case the ADSs will also
    represent the distributed property.     









Deposit, Withdrawal and Cancellation








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| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | temporary delays caused by closing our transfer books or those
    of the depositary, or the deposit of shares in connection with
    voting at a shareholders meeting, or the payment of
    dividends,
|
| |  | the payment of fees, taxes and similar charges, or                                                                                                                                                       
|
| |  | compliance with any U.S. or foreign laws or governmental
    regulations relating to the ADRs.                                                                                                           



Voting Rights








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| |   |                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | temporary delays caused by closing our transfer books or those
    of the depositary, or the deposit of shares in connection with
    voting at a shareholders meeting, or the payment of
    dividends,
|
| |  | the payment of fees, taxes and similar charges, or                                                                                                                                                       
|
| |  | compliance with any U.S. or foreign laws or governmental
    regulations relating to the ADRs.                                                                                                           



Fees and Expenses








| |   |                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a fee of $0.02 or less per ADS (or portion thereof) for any cash
    distribution made pursuant to the deposit agreement;                                                                                                                                                                                                                                                
|
| |  | a fee of $0.02 per ADS (or portion thereof) per year for
    services performed by the depositary in administering our ADR
    program (which fee shall be assessed against holders of ADRs as
    of the record date set by the depositary not more than once each
    calendar year and shall be payable in the manner described in
    the next succeeding provision);
|
| |  | any other charge payable by any of the depositary, any of the
    depositarys agents, including, without limitation, the
    custodian, or the agents of the depositarys agents in
    connection with the servicing of our shares or other deposited
    securities (which charge shall be assessed against registered
    holders of our                             

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | ADRs as of the record date or dates set by the depositary and
    shall be payable at the sole discretion of the depositary by
    billing such registered holders or by deducting such charge from
    one or more cash dividends or other cash distributions);                                                                                                                                                                                                                                          
|
| |  | a fee for the distribution of securities (or the sale of
    securities in connection with a distribution), such fee being in
    an amount equal to the fee for the execution and delivery of
    ADSs which would have been charged as a result of the deposit of
    such securities (treating all such securities as if they were
    shares) but which securities or the net cash proceeds from the
    sale thereof are instead distributed by the depositary to those
    holders entitled thereto;
|
| |  | stock transfer or other taxes and other governmental charges;                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | cable, telex and facsimile transmission and delivery charges
    incurred at your request;                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | transfer or registration fees for the registration of transfer
    of deposited securities on any applicable register in connection
    with the deposit or withdrawal of deposited securities;                                                                                                                                                                                                                                                                                                           
|
| |  | expenses of the depositary in connection with the conversion of
    foreign currency into U.S. dollars; and                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | such fees and expenses as are incurred by the depositary or its
    agents in connection with servicing the deposited securities.                                                                                                                                                                                                                                                                                                                                                                         



Payment of Taxes


split-up


Limitations on Obligations and Liability


Limits on our Obligations and the Obligations of the
Depositary; Limits on Liability to Holders of ADSs






| |   |                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | are only obligated to take the actions specifically set forth in
    the deposit agreement without negligence or bad faith;                                                  
|
| |  | are not liable if we are or it is prevented or delayed by law or
    circumstances beyond our control from performing our or its
    obligations under the deposit agreement;
|
| |  | are not liable if we or it exercises discretion permitted under
    the deposit agreement;                                                                                   
|
| |  | have no obligation to become involved in a lawsuit or other
    proceeding related to the ADSs or the deposit agreement on your
    behalf or on behalf of any other person; 
|
| |  | may rely upon any documents we believe or it believes in good
    faith to be genuine and to have been signed or presented by the
    proper person.                         

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Requirements for Depositary Actions






| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | payment of stock transfer or other taxes or other governmental
    charges and transfer or registration fees charged by third
    parties for the transfer of any shares or other deposited
    securities;
|
| |  | satisfactory proof of the identity and genuineness of any
    signature or other information it deems necessary; and                                                                                       
|
| |  | compliance with regulations it may establish, from time to time,
    consistent with the deposit agreement, including presentation of
    transfer documents.                                              



Shareholder communications; inspection of register of holders
of ADSs




Description of The Pooling Arrangements




General




Independent Directors




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Extraordinary Transactions




Interested Transactions


   


Listing of American Depositary Shares; SEC Filings






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | maintain the effectiveness of (i) the deposit agreement for
    the ordinary shares, or a similar agreement, and to assure that
    the ADSs evidencing the ordinary shares are listed on either the
    New York Stock Exchange or the Nasdaq Stock Market and (ii),
    while the preference ADSs are eligible for listing on the New
    York Exchange or the Nasdaq Stock Market, the deposit agreement
    for the preference shares, or a similar agreement, and to assure
    that, if eligible for such listing, the ADSs evidencing the
    preference shares are listed on either the New York Stock
    Exchange or the Nasdaq Stock Market;
|
| |  | file all reports, required by the New York Stock Exchange or the
    Nasdaq Stock Market, as applicable, the Securities Act, the
    Securities Exchange Act of 1934, as amended, and all other
    applicable laws;                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | prepare all financial statements required for any filing in
    accordance with generally accepted accounting principles of the
    U.S. (U.S. GAAP);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | on an annual basis, prepare audited consolidated financial
    statements including, without limitation, a balance sheet, a
    statement of income and retained earnings, and a statement of
    changes in financial position, and all appropriate notes, all in
    accordance U.S. GAAP, and, on a quarterly basis, prepare
    and furnish consolidated financial statements prepared in
    accordance with U.S. GAAP;                                                                                                                                                                                                                           
|
| |  | furnish materials with the SEC with respect to annual and
    special shareholder meetings under cover of
    Form 6-K and make
    the materials available to the depositary for distribution to
    holders of ordinary share ADSs and, if we maintain a preference
    share ADS facility, to holders of preference share ADSs at any
    time that holders of preference shares are entitled to voting
    rights; and                                                                                                                                                                                                                             

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | make available to the depositary for distribution to holders of
    ADSs representing our ordinary shares and, if we maintain a
    preference share ADS facility, ADSs representing our preference
    shares on an annual basis, a copy of any report prepared by the
    supervisory board or the supervisory board of the general
    partner and provided to our shareholders generally pursuant to
    Section 314(2) of the German Stock Corporation Act, or any
    successor provision. These reports concern the results of the
    supervisory boards examination of the managing
    boards report on our relation with affiliated enterprises.

Term






| |   |                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Fresenius AG or its affiliates acquire all our voting capital
    stock;                                                                                                                                                                                                                                                                                  
|
| |  | Fresenius AGs beneficial ownership of our outstanding
    share capital is reduced to less than 25%;                                                                                                                                                                                                                                                     
|
| |  | Fresenius AG or an affiliate of Fresenius AG ceases to own the
    general partner interest in
    FMC-AG & Co.
    KGaA; or                                                                                                                                                                                                                              
|
| |  | we no longer meet the minimum threshold for obligatory
    registration of the ordinary shares or ADSs representing our
    ordinary shares and the preference shares or ADSs representing
    our preference shares, as applicable, under
    Section 12(g)(1) of the Securities Exchange Act of 1934, as
    amended, and
    Rule 12g-1
    thereunder.

Amendment




Enforcement; Governing Law




Directors and Officers Insurance


FMC-AG FMC-AG




|   |                   
|-- | ------------------
|C. | Material contracts

6-K




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|   |                  
|-- | -----------------
|D. | Exchange controls

Exchange Controls and Other Limitations Affecting Security
Holders.


Deutsche
Bundesbank  


Satzung




|   |         
|-- | --------
|E. | Taxation

U.S. and German Tax Consequences of Holding ADSs


FMC-AG non-U.S. Investors should
consult their tax advisors with respect to the particular United
States federal and German tax consequences applicable to holding
ADSs of FMC-AG &
Co.KGaA.


Tax Treatment of Dividends


U.S.-German


U.S.-German U.S.-German




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U.S.-German


U.S.-German




U.S.-German


Refund Procedures


U.S.-German




U.S.-German


111



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Taxation of Capital Gains


U.S.-German




Gift and Inheritance Taxes


U.S.-Germany




Other German Taxes




United States Information Reporting and Backup Withholding


U.S.-related W-9)


Non-U.S. non-U.S. W-8BEN) non-U.S. U.S.-related


H.  Documents on display


1-800-SEC-0330.


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http://www.sec.gov.




http://www.fmc-ag.com.











|         |                                                               
|-------- | --------------------------------------------------------------
|Item 11. | Quantitative and Qualitative Disclosures About Market
    Risk

Market Risk






| |   |                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------
| |  | changes in reimbursement rates;                                                                                        
|
| |  | intense competition;                                                                                                   
|
| |  | foreign exchange rate fluctuations;                                                                                    
|
| |  | varying degrees of acceptance of new product introductions;                                                            
|
| |  | technological developments in our industry;                                                                            
|
| |  | uncertainties in litigation or investigative proceedings and
    regulatory developments in the health care sector; and
|
| |  | the availability of financing.                                                                                         



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Reimbursement Rates






Inflation




Management of Foreign Exchange and Interest Rate Risks






Foreign Exchange Risk


non-U.S.






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Foreign Currency Risk Management


December 31, 2006


(in thousands)


Nominal Amount


|                               |  |      |           |  |      |  |        |       |  |   |           |  |  |      |       |   |  |   |       | 
|------------------------------ |  | ---- | --------- |  | ---- |  | ------ | ----- |  | - | --------- |  |  | ---- | ----- | - |  | - | ----- | 
|                               |  |      |           |  |      |  |        | Fair  |  |   | Credit    | 
|                               |  | 2007 |           |  | 2008 |  |        | Total |  |   | Value     |  |  | Risk |      
|                               |  |      |           |  |      |  |        |       |  |   |           |  |  |      |      
|Purchase of EUR against USD    |  | $    | 611,607   |  |      |  | 16,858 |       |  | $ | 628,465   |  |  | $    | 1,256 |   |  | $ | 2,590 | 
|Sale of EUR against USD        |  |      | 8,258     |  |      |  |       |       |  |   | 8,258     |  |  |      | (99   | ) |  |   | 6     | 
|Purchase of EUR against others |  |      | 306,845   |  |      |  | 30,775 |       |  |   | 337,620   |  |  |      | 1,718 |   |  |   | 4,675 | 
|Sale of EUR against others     |  |      | 32,014    |  |      |  |       |       |  |   | 32,014    |  |  |      | (192  | ) |  |   | 10    | 
|Others                         |  |      | 58,650    |  |      |  | 17,185 |       |  |   | 75,835    |  |  |      | (70   | ) |  |   | 1,719 | 
|                               |  |      |           |  |      |  |        |       |  |   |           |  |  |      |      
|Total                          |  | $    | 1,017,374 |  |      |  | 64,818 |       |  | $ | 1,082,192 |  |  | $    | 2,613 |   |  | $ | 9,000 | 
|                               |  |      |           |  |      |  |        |       |  |   |           |  |  |      |      



|                         |  |        |        |  |        |  |        |         |  |  |        |  |  |  |        | 
|------------------------ |  | ------ | ------ |  | ------ |  | ------ | ------- |  |  | ------ |  |  |  | ------ | 
|                         |  | Years |        |  | Years |  |        | Years  |  |  | Years | 
|Year ending December 31, |  | High   |        |  | Low    |  |        | Average |  |  | Close  | 
|                         |  |        |        |  |        |  |        |         |  |  |        | 
|2002 $ per              |  |        | 1.0487 |  |        |  | 0.8578 |         |  |  | 0.9454 |  |  |  | 1.0487 | 
|2003 $ per              |  |        | 1.2630 |  |        |  | 1.0377 |         |  |  | 1.1312 |  |  |  | 1.2630 | 
|2004 $ per              |  |        | 1.3633 |  |        |  | 1.1802 |         |  |  | 1.2439 |  |  |  | 1.3621 | 
|2005 $ per              |  |        | 1.3507 |  |        |  | 1.1667 |         |  |  | 1.2442 |  |  |  | 1.1797 | 
|2006 $ per              |  |        | 1.3331 |  |        |  | 1.1826 |         |  |  | 1.2558 |  |  |  | 1.3170 | 

Interest Rate Risk








115



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Dollar Interest Rate Exposure


December 31, 2006


(in millions)


|                                                                                                                        |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |     |  
|----------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------- | ---- | --- | ---- | ---- |  | --- | ---- | - |  | ---- | ---- | - | ---- | --- | ---------- | ---------- |  | ----- | ------ | - |  | ----- | ---- | - | - | ----- | ----- | - | - | ----- | --- | -
|                                                                                                                        |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     | Fair Value |           
|                                                                                                                        |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     | Dec. 31,   |           
|                                                                                                                        |                                                                   | 2007 |     |      | 2008 |  |     | 2009 |   |  | 2010 |      |   | 2011 |     |            | Thereafter |  |       | Totals |   |  | 2006  |     
|                                                                                                                        |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |     
|Principal payments on Senior Credit Agreement                                                                           |                                                                   |      | 137 |      |      |  | 137 |      |   |  | 137  |      |   |      | 137 |            |            |  | 1,367 |        |   |  | 1,650 |      |   | $ | 3,565 |       |   | $ | 3,565 |    
|                                                                                                                        | Variable interest rate = 6,52%                                    |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |     |  
|Accounts receivable securitization programs                                                                             |                                                                   |      | 266 |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   | $ | 266   |       |   | $ | 266   |    
|                                                                                                                        | Variable interest rate = 5.36%                                    |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |     |  
|Interest rate swaps                                                                                                     |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |    
|                                                                                                                        | Notional amount                                                   |      |     | 350  |      |  |     | 615  |   |  |      | 450  |   |      |     | 250        |            |  |       | 1,000  |   |  |       | 500  |   |   | $     | 3,165 |   |   | $     | 60  |  
|                                                                                                                        | Average fixed pay rate = 4.50%                                    |      |     | 5.29 | %    |  |     | 4.69 | % |  |      | 4.84 | % |      |     | 4.28       | %          |  |       | 4.10   | % |  |       | 4.31 | % |   |       | 4.50  | % |   |       |     |  
|                                                                                                                        | Receive rate = 3-month $LIBOR                                     |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |     |  
|Company obligated mandatorily redeemable preferred securities of
    subsidiaries Fresenius Medical Care Capital Trusts |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |    
|                                                                                                                        | Fixed interest rate = 7.875 %/issued in 1998                      |      |     |      |      |  |     | 435  |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   | $     | 435   |   |   | $     | 472 |  
|                                                                                                                        | Fixed interest rate = 7.375 %/issued in 1998 (denominated in DEM) |      |     |      |      |  |     | 202  |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   | $     | 202   |   |   | $     | 207 |  
|                                                                                                                        | Fixed interest rate = 7.875 %/issued in 2001                      |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       | 223    |   |  |       |      |   |   | $     | 223   |   |   | $     | 233 |  
|                                                                                                                        | Fixed interest rate = 7.375 %/issued in 2001 (denominated in EUR) |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       | 394    |   |  |       |      |   |   | $     | 394   |   |   | $     | 435 |  
|Interest rate swaps                                                                                                     |                                                                   |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |    
|                                                                                                                        | Notional amount                                                   |      |     |      |      |  |     | 450  |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   | $     | 450   |   |   | $     | (15 | )
|                                                                                                                        | Average fixed receive rate = 3.50%                                |      |     |      |      |  |     | 3.50 | % |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       | 3.50  | % |   |       |     |  
|                                                                                                                        | Pay rate = 6-month $LIBOR                                         |      |     |      |      |  |     |      |   |  |      |      |   |      |     |            |            |  |       |        |   |  |       |      |   |   |       |       |   |   |       |     |  




Item 12.     Description of
Securities other than Equity Securities







PART II







|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Defaults, Dividend Arrearages and Delinquencies








|         |                                                                                 
|-------- | --------------------------------------------------------------------------------
|Item 14. | Material Modifications to the Rights of Security Holders
    and Use of Proceeds








|          |                                   
|--------- | ----------------------------------
|Item 15A. | Disclosure Controls and Procedures

13a-15.


116



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##### Table of Contents










|          |                                                                            
|--------- | ---------------------------------------------------------------------------
|Item 15B. | Managements annual report on internal control over
    financial reporting

13a-15(f).













Item 15C.Attestation
report of the registered public accounting firm









|          |                                                         
|--------- | --------------------------------------------------------
|Item 15D. | Changes in Internal Control over Financial
    Reporting






Item 16A.Audit
Committee Financial Expert




117



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##### Table of Contents






Item 16B.Code of
Ethics


Code of
Business Conduct,







Item 16C.Principal
Accountant Fees and Services




|                   |  |      |       |  |      |   |       | 
|------------------ |  | ---- | ----- |  | ---- | - | ----- | 
|                   |  | 2006 |       |  | 2005 |  
|                   |  |      |       |  |      |  
|Audit fees         |  | $    | 7,659 |  |      | $ | 7,203 | 
|Audit related fees |  |      | 296   |  |      |   | 485   | 
|Tax fees           |  |      | 582   |  |      |   | 649   | 
|                   |  |      |       |  |      |  
|Total              |  | $    | 8,537 |  |      | $ | 8,337 | 
|                   |  |      |       |  |      |  



Audit Committees pre-approval policies and
procedures






118



---



##### Table of Contents









Item 16D.Exemptions
from the Listing Standards for Audit Committees







Item 16E.Purchase of
Equity Securities by the Issuer and Affiliated Purchasers








PART III







|         |                     
|-------- | --------------------
|Item 17. | Financial Statements








|         |                     
|-------- | --------------------
|Item 18. | Financial Statements








|         |         
|-------- | --------
|Item 19. | Exhibits

20-F,


6-K/


F-6, 333-140664,


F-6, 333-140730,


20-F


20-F




119



---



##### Table of Contents



20-F


20-F


20-F


20-F


20-F


20-F


20-F


20-F


20-F


20-F


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


120



---



##### Table of Contents



F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).


F-4 333-66558).






10-Q,


10-Q,


6-K,


20-F


121



---



##### Table of Contents



6-K


6-K


6-K


6-K




6-K


6-K






122



---



##### Table of Contents





F-1,


F-1, 333-05922,


F-1, 333-05922,


F-1,


F-1, 333-05922,


F-1,


F-1, 333-05922,


F-1, 333-05922,


20-F


S-8,


6-K


20-F,


F-4 333-66558).


123



---



##### Table of Contents



6-K/A




8-K


10-K


6-K


6-K


051-0154. 6-K


6-K


6-K


6-K




20-F








124



---



##### Table of Contents










|    |                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Confidential treatment has been granted as to certain portions
    of this document in accordance with the applicable rules of the
    Securities and Exchange Commission.  
|   
|(2) | Confidential treatment has been requested as to certain portions
    of this document in accordance with the applicable rules of the
    Securities and Exchange Commission.

125



---



##### Table of Contents



SIGNATURES


20-F/A






| |                                                 
| | ------------------------------------------------
| | Fresenius Medical Care AG
    & Co. KGaA,       
| | a partnership limited by shares, represented by:
|
| | fresenius medical care
    management ag,       
| | its general partner                             



| |     |                     
| | --- | --------------------
| | By: | /s/ Dr. Ben J: Lipps

| |                                  
| | ---------------------------------
| |                                  
| | Name:        Dr. Ben
    J. Lipps

| |        |                            
| | ------ | ---------------------------
| | Title: | Chief Executive Officer and

| |                                     
| | ------------------------------------
| | Chairman
    of the Management Board



| |     |                      
| | --- | ---------------------
| | By: | /s/ Lawrence A. Rosen

| |                                    
| | -----------------------------------
| |                                    
| | Name:         Lawrence
    A. Rosen

| |        |                        
| | ------ | -----------------------
| | Title: | Chief Financial Officer

126



---



##### 










INDEX OF FINANCIAL STATEMENTS


|                                                                                                               |  |      |      | 
|-------------------------------------------------------------------------------------------------------------- |  | ---- | ---- | 
|                                                                                                               |  | Page |     
|                                                                                                               |  |      |     
|Audited Consolidated Financial Statements                                                                      |  |      |      | 
|Managements Annual Report on Internal
    Control over Financial Reporting                                    |  |      | F-2  | 
|Report of Independent Registered Public
    Accounting Firm                                                    |  |      | F-3  | 
|Report of Independent Registered Public
    Accounting Firm on Managements Assessment on Internal
    Control |  |      | F-4  | 
|Consolidated Statements of Income for the
    years ended December 31, 2006, 2005 and 2004                     |  |      | F-6  | 
|Consolidated Balance Sheets as of
    December 31, 2006 and 2005                                               |  |      | F-7  | 
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2006, 2005 and 2004                 |  |      | F-8  | 
|Consolidated Statement of
    Shareholders Equity for the years ended December 31,
    2006, 2005 and 2004    |  |      | F-9  | 
|Notes to Consolidated Financial
    Statements                                                                 |  |      | F-10 | 
|Financial Statement Schedule                                                                                   |  |      | S-1  | 



F-1



---



##### Table of Contents






MANAGEMENTS ANNUAL REPORT ON INTERNAL CONTROL


OVER FINANCIAL REPORTING
















| |                                                 
| | ------------------------------------------------
| | Fresenius Medical Care AG
    & Co. KGaA,       
| | a partnership limited by shares, represented by:
|
| | fresenius medical care
    management ag, its   
| | General Partner                                 
|
| | By: /s/ DR. BEN LIPPS                           
| |                                                 

| |        |                                                                   
| | ------ | ------------------------------------------------------------------
| | Name:  | Dr. Ben Lipps                                                     
| | Title: | Chief Executive Officer and 
     Chairman of the Management Board



| |                          
| | -------------------------
| | By: /s/ LAWRENCE A. ROSEN
| |                          

| |        |                        
| | ------ | -----------------------
| | Name:  | Lawrence Rosen         
| | Title: | Chief Financial Officer

F-2



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


























F-3



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON MANAGEMENTS ASSESSMENT ON INTERNAL CONTROL
















F-4



---



##### Table of Contents

















F-5



---



##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


Consolidated Statements of Income


For the years ended December 31, 2006, 2005 and 2004


(in thousands, except share data)


|                                                 |                                     |      |           |           |      |   |           |           |   |   |           |           |  
|------------------------------------------------ | ----------------------------------- | ---- | --------- | --------- | ---- | - | --------- | --------- | - | - | --------- | --------- | -
|                                                 |                                     | 2006 |           |           | 2005 |   |           | 2004      |  
|                                                 |                                     |      |           |           |      |   |           |           |  
|Net revenue:                                     |                                     |      |           |           |      |   |           |           |   |   |           |          
|                                                 | Dialysis Care                       |      | $         | 6,377,390 |      |   | $         | 4,866,833 |   |   | $         | 4,501,197 |  
|                                                 | Dialysis Products                   |      |           | 2,121,648 |      |   |           | 1,904,986 |   |   |           | 1,726,805 |  
|                                                 |                                     |      |           |           |      |   |           |           |  
|                                                 |                                     |      | 8,499,038 |           |      |   | 6,771,819 |           |   |   | 6,228,002 |          
|Costs of revenue:                                |                                     |      |           |           |      |   |           |           |   |   |           |          
|                                                 | Dialysis Care                       |      |           | 4,538,234 |      |   |           | 3,583,781 |   |   |           | 3,356,271 |  
|                                                 | Dialysis Products                   |      |           | 1,083,248 |      |   |           | 979,900   |   |   |           | 909,932   |  
|                                                 |                                     |      |           |           |      |   |           |           |  
|                                                 |                                     |      | 5,621,482 |           |      |   | 4,563,681 |           |   |   | 4,266,203 |          
|                                                
|Gross profit                                     |                                     |      | 2,877,556 |           |      |   | 2,208,138 |           |   |   | 1,961,799 |          
|Operating expenses:                              |                                     |      |           |           |      |   |           |           |   |   |           |          
|                                                 | Selling, general and administrative |      |           | 1,548,369 |      |   |           | 1,218,265 |   |   |           | 1,058,090 |  
|                                                 | Gain on Sale of dialysis clinics    |      |           | (40,233   | )    |   |           |          |   |   |           |          |  
|                                                 | Research and development            |      |           | 51,293    |      |   |           | 50,955    |   |   |           | 51,364    |  
|                                                 |                                     |      |           |           |      |   |           |           |  
|Operating income                                 |                                     |      | 1,318,127 |           |      |   | 938,918   |           |   |   | 852,345   |          
|Other (income) expense:                          |                                     |      |           |           |      |   |           |           |   |   |           |          
|                                                 | Interest income                     |      |           | (20,432   | )    |   |           | (18,187   | ) |   |           | (13,418   | )
|                                                 | Interest expense                    |      |           | 371,678   |      |   |           | 191,379   |   |   |           | 197,164   |  
|                                                 |                                     |      |           |           |      |   |           |           |  
|                                                
|Income before income taxes and minority interest |                                     |      | 966,881   |           |      |   | 765,726   |           |   |   | 668,599   |          
|Income tax expense                               |                                     |      | 413,489   |           |      |   | 308,748   |           |   |   | 265,415   |          
|Minority interest                                |                                     |      | 16,646    |           |      |   | 2,026     |           |   |   | 1,186     |          
|                                                 |                                     |      |           |           |      |   |           |           |  
|Net income                                       |                                     | $    | 536,746   |           |      | $ | 454,952   |           |   | $ | 401,998   |          
|                                                 |                                     |      |           |           |      |   |           |           |  
|                                                
|Basic income per ordinary share                  |                                     | $    | 5.47      |           |      | $ | 4.68      |           |   | $ | 4.16      |          
|                                                 |                                     |      |           |           |      |   |           |           |  
|Fully diluted income per ordinary share          |                                     | $    | 5.44      |           |      | $ | 4.64      |           |   | $ | 4.14      |          
|                                                 |                                     |      |           |           |      |   |           |           |  



F-6



---



##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


Consolidated Balance Sheets


At December 31, 2006 and 2005


(in thousands, except share data)


|                                                                                                                                                                                       |                                                                                                              |      |           |            |      |  |           |           | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ---- | --------- | ---------- | ---- |  | --------- | --------- | 
|                                                                                                                                                                                       |                                                                                                              | 2006 |           |            | 2005 | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|Assets                                                                                                                                                                                 |                                                                                                              |      |           |            |      |  |           |          
|Current assets:                                                                                                                                                                        |                                                                                                              |      |           |            |      |  |           |          
|                                                                                                                                                                                       | Cash and cash equivalents                                                                                    |      | $         | 159,010    |      |  | $         | 85,077    | 
|                                                                                                                                                                                       | Trade accounts receivable, less allowance for doubtful accounts
    of $207,293 in 2006 and $176,568 in 2005 |      |           | 1,848,695  |      |  |           | 1,469,933 | 
|                                                                                                                                                                                       | Accounts receivable from related parties                                                                     |      |           | 143,349    |      |  |           | 33,884    | 
|                                                                                                                                                                                       | Inventories                                                                                                  |      |           | 523,929    |      |  |           | 430,893   | 
|                                                                                                                                                                                       | Prepaid expenses and other current assets                                                                    |      |           | 443,854    |      |  |           | 261,590   | 
|                                                                                                                                                                                       | Deferred taxes                                                                                               |      |           | 293,079    |      |  |           | 179,561   | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total current assets                                                                                         |      |           | 3,411,916  |      |  |           | 2,460,938 | 
|                                                                                                                                                                                      
|Property, plant and equipment, net                                                                                                                                                     |                                                                                                              |      | 1,722,392 |            |      |  | 1,215,758 |          
|Intangible assets                                                                                                                                                                      |                                                                                                              |      | 661,365   |            |      |  | 585,689   |          
|Goodwill                                                                                                                                                                               |                                                                                                              |      | 6,892,161 |            |      |  | 3,456,877 |          
|Deferred taxes                                                                                                                                                                         |                                                                                                              |      | 62,722    |            |      |  | 35,649    |          
|Other assets                                                                                                                                                                           |                                                                                                              |      | 294,125   |            |      |  | 228,189   |          
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total assets                                                                                                 |      | $         | 13,044,681 |      |  | $         | 7,983,100 | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|Liabilities and shareholders equity                                                                                                                                                   |                                                                                                              |      |           |            |      |  |           |          
|Current liabilities:                                                                                                                                                                   |                                                                                                              |      |           |            |      |  |           |          
|                                                                                                                                                                                       | Accounts payable                                                                                             |      | $         | 316,188    |      |  | $         | 201,317   | 
|                                                                                                                                                                                       | Accounts payable to related parties                                                                          |      |           | 236,619    |      |  |           | 107,938   | 
|                                                                                                                                                                                       | Accrued expenses and other current liabilities                                                               |      |           | 1,194,939  |      |  |           | 838,768   | 
|                                                                                                                                                                                       | Short-term borrowings                                                                                        |      |           | 331,231    |      |  |           | 151,113   | 
|                                                                                                                                                                                       | Short-term borrowings from related parties                                                                   |      |           | 4,575      |      |  |           | 18,757    | 
|                                                                                                                                                                                       | Current portion of long-term debt and capital lease obligations                                              |      |           | 160,135    |      |  |           | 126,269   | 
|                                                                                                                                                                                       | Income tax payable                                                                                           |      |           | 116,059    |      |  |           | 120,138   | 
|                                                                                                                                                                                       | Deferred taxes                                                                                               |      |           | 15,959     |      |  |           | 13,940    | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total current liabilities                                                                                    |      |           | 2,375,705  |      |  |           | 1,578,240 | 
|                                                                                                                                                                                      
|Long-term debt and capital lease obligations, less current
    portion                                                                                                                 |                                                                                                              |      | 3,829,341 |            |      |  | 707,100   |          
|Other liabilities                                                                                                                                                                      |                                                                                                              |      | 149,684   |            |      |  | 112,418   |          
|Pension liabilities                                                                                                                                                                    |                                                                                                              |      | 112,316   |            |      |  | 108,702   |          
|Deferred taxes                                                                                                                                                                         |                                                                                                              |      | 378,487   |            |      |  | 300,665   |          
|Company-obligated mandatorily redeemable preferred securities of
    subsidiary Fresenius Medical Care Capital Trusts holding solely
    Company-guaranteed debentures of subsidiaries |                                                                                                              |      | 1,253,828 |            |      |  | 1,187,864 |          
|Minority interest                                                                                                                                                                      |                                                                                                              |      | 75,158    |            |      |  | 14,405    |          
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total liabilities                                                                                            |      |           | 8,174,519  |      |  |           | 4,009,394 | 
|Shareholders equity:                                                                                                                                                                  |                                                                                                              |      |           |            |      |  |           |          
|Preference shares, no par value,
    2.56 nominal
    value, 4,118,960 shares authorized, 1,237,145 issued and
    outstanding                                                        |                                                                                                              |      | 3,373     |            |      |  | 74,476    |          
|Ordinary shares, no par value,
    2.56 nominal
    value, 127,916,240 shares authorized, 97,149,891 issued and
    outstanding                                                       |                                                                                                              |      | 302,615   |            |      |  | 229,494   |          
|Additional paid-in capital                                                                                                                                                             |                                                                                                              |      | 3,211,193 |            |      |  | 2,837,144 |          
|Retained earnings                                                                                                                                                                      |                                                                                                              |      | 1,358,397 |            |      |  | 975,371   |          
|Accumulated other comprehensive loss                                                                                                                                                   |                                                                                                              |      | (5,416    | )          |      |  | (142,779  | )        
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total shareholders equity                                                                                   |      |           | 4,870,162  |      |  |           | 3,973,706 | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 
|                                                                                                                                                                                       | Total liabilities and shareholders equity                                                                   |      | $         | 13,044,681 |      |  | $         | 7,983,100 | 
|                                                                                                                                                                                       |                                                                                                              |      |           |            |      | 



F-7



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##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


Consolidated Statements of Cash Flows


For the years ended December 31, 2006, 2005 and 2004


(in thousands, except share data)


|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |          |          |         | 
|------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | ----------------------------------------- | ---------- | ---------- | ------- | ------ | -------- | -------- | ------- | ---- | -------- | -------- | ------- | 
|                                                             |                                                                                                                  | 2006                                                                                 |                                           |            | 2005       |         |        | 2004     |         
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|Operating Activities:                                        |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |         
|                                                             | Net income                                                                                                       |                                                                                      | $                                         | 536,746    |            |         | $      | 454,952  |          |         | $    | 401,998  |         
|                                                             | Adjustments to reconcile net income to cash and cash equivalents
    provided by (used in) operating activities: |                                                                                      |                                           |            |            |         |        |          |          |         |      |          |         
|                                                             |                                                                                                                  | Settlement of shareholder proceedings                                                |                                           |            | (888       | )       |        |          | 7,335    |         |      |          |         |        
|                                                             |                                                                                                                  | Depreciation and amortization                                                        |                                           |            | 308,698    |         |        |          | 251,452  |         |      |          | 232,585  |        
|                                                             |                                                                                                                  | Change in minority interest                                                          |                                           |            | 24,333     |         |        |          |         |         |      |          |         |        
|                                                             |                                                                                                                  | Change in deferred taxes, net                                                        |                                           |            | 10,904     |         |        |          | (3,675   | )       |      |          | 34,281   |        
|                                                             |                                                                                                                  | Loss on sale of fixed assets and investments                                         |                                           |            | 5,742      |         |        |          | 3,965    |         |      |          | 735      |        
|                                                             |                                                                                                                  | Compensation expense related to stock options                                        |                                           |            | 16,610     |         |        |          | 1,363    |         |      |          | 1,751    |        
|                                                             |                                                                                                                  | Cash inflow from Hedging                                                             |                                           |            | 10,908     |         |        |          |         |         |      |          | 14,514   |        
|                                                             | Changes in assets and liabilities, net of amounts from
    businesses acquired:                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |          |         
|                                                             |                                                                                                                  | Trade accounts receivable, net                                                       |                                           |            | (31,276    | )       |        |          | (63,574  | )       |      |          | (7,886   | )      
|                                                             |                                                                                                                  | Inventories                                                                          |                                           |            | (42,553    | )       |        |          | (9,811   | )       |      |          | 27,245   |        
|                                                             |                                                                                                                  | Prepaid expenses, other current and non-current assets                               |                                           |            | (21,629    | )       |        |          | (41,036  | )       |      |          | 70,033   |        
|                                                             |                                                                                                                  | Accounts receivable from / payable to related parties                                |                                           |            | (4,875     | )       |        |          | 9,596    |         |      |          | (22,686  | )      
|                                                             |                                                                                                                  | Accounts payable, accrued expenses and other current and
    non-current liabilities |                                           |            | 182,877    |         |        |          | 148,735  |         |      |          | 36,157   |        
|                                                             |                                                                                                                  | Income tax payable                                                                   |                                           |            | (24,250    | )       |        |          | (88,998  | )       |      |          | 39,116   |        
|                                                             |                                                                                                                  | Tax payments related to divestitures and acquisitions                                |                                           |            | (63,517    | )       |        |          |         |         |      |          |         |        
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|                                                             |                                                                                                                  |                                                                                      | Net cash provided by operating activities |            |            | 907,830 |        |          |          | 670,304 |      |          |          | 827,843 | 
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|Investing Activities:                                        |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |         
|                                                             | Purchases of property, plant and equipment                                                                       |                                                                                      |                                           | (467,193   | )          |         |        | (314,769 | )        |         |      | (278,732 | )       
|                                                             | Proceeds from sale of property, plant and equipment                                                              |                                                                                      |                                           | 17,658     |            |         |        | 17,427   |          |         |      | 18,358   |         
|                                                             | Acquisitions and investments, net of cash acquired                                                               |                                                                                      |                                           | (4,307,282 | )          |         |        | (125,153 | )        |         |      | (104,493 | )       
|                                                             | Proceeds from divestitures                                                                                       |                                                                                      |                                           | 515,705    |            |         |        |         |          |         |      |         |         
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|                                                             |                                                                                                                  | Net cash used in investing activities                                                |                                           |            | (4,241,112 | )       |        |          | (422,495 | )       |      |          | (364,867 | )      
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|Financing Activities:                                        |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |         
|                                                             | Proceeds from short-term borrowings                                                                              |                                                                                      |                                           | 56,562     |            |         |        | 44,655   |          |         |      | 70,484   |         
|                                                             | Repayments of short-term borrowings                                                                              |                                                                                      |                                           | (55,789    | )          |         |        | (75,493  | )        |         |      | (86,850  | )       
|                                                             | Proceeds from short-term borrowings from related parties                                                         |                                                                                      |                                           | 269,920    |            |         |        | 56,381   |          |         |      | 55,539   |         
|                                                             | Repayments of short-term borrowings from related parties                                                         |                                                                                      |                                           | (285,430   | )          |         |        | (42,632  | )        |         |      | (80,000  | )       
|                                                             | Proceeds from long-term debt and capital lease obligations (net
    of debt issuance costs of $85,828 in 2006)   |                                                                                      |                                           | 4,007,450  |            |         |        | 426,531  |          |         |      | 369,369  |         
|                                                             | Repayments of long-term debt and capital lease obligations                                                       |                                                                                      |                                           | (973,885   | )          |         |        | (331,407 | )        |         |      | (840,131 | )       
|                                                             | Increase (decrease) of accounts receivable securitization
    program                                            |                                                                                      |                                           | 172,000    |            |         |        | (241,765 | )        |         |      | 177,767  |         
|                                                             | Proceeds from exercise of stock options                                                                          |                                                                                      |                                           | 53,952     |            |         |        | 79,944   |          |         |      | 3,622    |         
|                                                             | Proceeds from conversion of preference shares into ordinary
    shares                                           |                                                                                      |                                           | 306,759    |            |         |        |         |          |         |      |         |         
|                                                             | Dividends paid                                                                                                   |                                                                                      |                                           | (153,720   | )          |         |        | (137,487 | )        |         |      | (122,106 | )       
|                                                             | Change in minority interest                                                                                      |                                                                                      |                                           | (15,130    | )          |         |        | 1,506    |          |         |      | 389      |         
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|                                                             |                                                                                                                  | Net cash provided by (used in) financing activities                                  |                                           |            | 3,382,689  |         |        |          | (219,767 | )       |      |          | (451,917 | )      
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|Effect of exchange rate changes on cash and cash equivalents |                                                                                                                  |                                                                                      | 24,526                                    |            |            |         | (1,931 | )        |          |         | (520 | )       
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|Cash and Cash Equivalents:                                   |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |          |         |      |         
|                                                             | Net increase in cash and cash equivalents                                                                        |                                                                                      |                                           | 73,933     |            |         |        | 26,111   |          |         |      | 10,539   |         
|                                                             | Cash and cash equivalents at beginning of period                                                                 |                                                                                      |                                           | 85,077     |            |         |        | 58,966   |          |         |      | 48,427   |         
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         
|                                                             | Cash and cash equivalents at end of period                                                                       |                                                                                      | $                                         | 159,010    |            |         | $      | 85,077   |          |         | $    | 58,966   |         
|                                                             |                                                                                                                  |                                                                                      |                                           |            |            |         |        |          |         



F-8



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##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


Consolidated Statement of Shareholders Equity


For the years ended December 31, 2006, 2005 and 2004


(in thousands, except share data)


|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |          |  
|---------------------------------------------------------------------- | ----------------------------------------------------- | ----------------- | ----------- | - | --------------- | - | ------- | ---------- |  | --------------------------- | ---------- |  |  | ----------------- | ------- |  | --------- | - | --------- | ----------- |  | - | --------- | ------- |  | -------- | -------- | -------- | ----- | - | ------- | ------- | - | - | ------- | ------- | - | - | --------- | -------- | -
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  | Accumulated Other |         |  |          
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  | Comprehensive Income (Loss) |            |  | 
|                                                                       |                                                       | Preference Shares |             |   | Ordinary Shares |   |         |            |  |                             |            |  |  |                   |        
|                                                                       |                                                       |                   |             |   |                 |   |         | Additional |  |                             | Retained   |  |  | Foreign           |         |  |           |   |          
|                                                                       |                                                       | Number of         |             |   | No Par          |   |         | Number of  |  |                             | No Par     |  |  | Paid in           |         |  | Earnings  |   |           | Currency    |  |   | Cash Flow |         |  |          |          |         
|                                                                       |                                                       | Shares            |             |   | Value           |   |         | Shares     |  |                             | Value      |  |  | Capital           |         |  | (Deficit) |   |           | Translation |  |   | Hedges    |         |  | Pensions |          |          | Total |  
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Balance at December 31, 2003                                           |                                                       |                   | 26,213,979  |   |                 | $ | 69,616  |            |  |                             | 70,000,000 |  |  | $                 | 229,494 |  |           | $ | 2,741,362 |             |  | $ | 378,014   |         |  | $        | (146,246 | )        |       | $ | 4,847   |         |   | $ | (33,407 | )       |   | $ | 3,243,680 |         
|Proceeds from exercise of options and related tax effects              |                                                       |                   | 82,107      |   |                 |   | 262     |            |  |                             |            |  |  |                   |         |  |           |   | 3,360     |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 3,622     |         
|Compensation expense related to stock options                          |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   | 1,751     |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 1,751     |         
|Dividends paid                                                         |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   | (122,106  | )       |  |          |          |          |       |   |         |         |   |   |         |         |   |   | (122,106  | )       
|Comprehensive income (loss)                                            |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |         
|                                                                       | Net income                                            |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           | 401,998 |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           | 401,998  |  
|                                                                       | Other comprehensive income (loss) related to:         |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |          |  
|                                                                       | Cash flow hedges, net of related tax effects          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         | (29,011 | ) |   |         |         |   |   |           | (29,011  | )
|                                                                       | Foreign currency translation                          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          | 144,784  |       |   |         |         |   |   |         |         |   |   |           | 144,784  |  
|                                                                       | Minimum pension liability, net of related tax effects |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         | (9,902  | ) |   |           | (9,902   | )
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Comprehensive income                                                   |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 507,869   |         
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Balance at December 31, 2004                                           |                                                       |                   | 26,296,086  |   |                 | $ | 69,878  |            |  |                             | 70,000,000 |  |  | $                 | 229,494 |  |           | $ | 2,746,473 |             |  | $ | 657,906   |         |  | $        | (1,462   | )        |       | $ | (24,164 | )       |   | $ | (43,309 | )       |   | $ | 3,634,816 |         
|Proceeds from exercise of options and related tax effects              |                                                       |                   | 1,466,093   |   |                 |   | 4,598   |            |  |                             |            |  |  |                   |         |  |           |   | 81,973    |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 86,571    |         
|Compensation expense related to stock options                          |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   | 1,363     |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 1,363     |         
|Dividends paid                                                         |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   | (137,487  | )       |  |          |          |          |       |   |         |         |   |   |         |         |   |   | (137,487  | )       
|Settlement of shareholder proceedings                                  |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   | 7,335     |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 7,335     |         
|Comprehensive income (loss)                                            |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |         
|                                                                       | Net income                                            |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           | 454,952 |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           | 454,952  |  
|                                                                       | Other comprehensive income (loss) related to:         |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |          |  
|                                                                       | Cash flow hedges, net of related tax effects          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         | 43,128  |   |   |         |         |   |   |           | 43,128   |  
|                                                                       | Foreign currency translation                          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          | (104,723 | )     |   |         |         |   |   |         |         |   |   |           | (104,723 | )
|                                                                       | Minimum pension liability, net of related tax effects |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         | (12,249 | ) |   |           | (12,249  | )
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Comprehensive income                                                   |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 381,108   |         
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Balance at December 31, 2005                                           |                                                       |                   | 27,762,179  |   |                 | $ | 74,476  |            |  |                             | 70,000,000 |  |  | $                 | 229,494 |  |           | $ | 2,837,144 |             |  | $ | 975,371   |         |  | $        | (106,185 | )        |       | $ | 18,964  |         |   | $ | (55,558 | )       |   | $ | 3,973,706 |         
|Proceeds from exercise of options and related tax effects              |                                                       |                   | 104,388     |   |                 |   | 334     |            |  |                             | 520,469    |  |  |                   | 1,684   |  |           |   | 51,568    |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 53,586    |         
|Proceeds from conversion of preference shares into ordinary
    shares |                                                       |                   | (26,629,422 | ) |                 |   | (71,437 | )          |  |                             | 26,629,422 |  |  |                   | 71,437  |  |           |   | 306,759   |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 306,759   |         
|Compensation expense related to stock options                          |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   | 16,610    |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 16,610    |         
|Dividends paid                                                         |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   | (153,720  | )       |  |          |          |          |       |   |         |         |   |   |         |         |   |   | (153,720  | )       
|Settlement of shareholder proceedings                                  |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   | (888      | )           |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | (888      | )       
|Comprehensive income (loss)                                            |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |         
|                                                                       | Net income                                            |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           | 536,746 |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           | 536,746  |  
|                                                                       | Other comprehensive income (loss) related to:         |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   |           |          |  
|                                                                       | Cash flow hedges, net of related tax effects          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         | 18,223  |   |   |         |         |   |   |           | 18,223   |  
|                                                                       | Foreign currency translation                          |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          | 114,494  |       |   |         |         |   |   |         |         |   |   |           | 114,494  |  
|                                                                       | Adjustments relating to pension obligations           |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         | 4,646   |   |   |           | 4,646    |  
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Comprehensive income                                                   |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |   |         |         |   |   |         |         |   |   | 674,109   |         
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  
|Balance at December 31, 2006                                           |                                                       |                   | 1,237,145   |   |                 | $ | 3,373   |            |  |                             | 97,149,891 |  |  | $                 | 302,615 |  |           | $ | 3,211,193 |             |  | $ | 1,358,397 |         |  | $        | 8,309    |          |       | $ | 37,187  |         |   | $ | (50,912 | )       |   | $ | 4,870,162 |         
|                                                                       |                                                       |                   |             |   |                 |   |         |            |  |                             |            |  |  |                   |         |  |           |   |           |             |  |   |           |         |  |          |          |          |       |  



F-9



---



##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(in thousands, except share data)




|   |                                                           
|-- | ----------------------------------------------------------
|1. | The Company and Summary of Significant Accounting Policies

The Company


Kommanditgesellschaft auf Aktien (FMC-AG), Aktiengesellschaft




Basis of Presentation




Summary of Significant Accounting Policies




|   |                            
|-- | ---------------------------
|a) | Principles of Consolidation







|   |                
|-- | ---------------
|b) | Classifications



F-10



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|   |                          
|-- | -------------------------
|c) | Cash and Cash Equivalents





|   |                                
|-- | -------------------------------
|d) | Allowance for Doubtful Accounts





|   |            
|-- | -----------
|e) | Inventories





|   |                              
|-- | -----------------------------
|f) | Property, Plant and Equipment





|   |                                     
|-- | ------------------------------------
|g) | Other Intangible Assets and Goodwill





F-11



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)










|   |                                 
|-- | --------------------------------
|h) | Derivative Financial Instruments





|   |                             
|-- | ----------------------------
|i) | Foreign Currency Translation





|   |                           
|-- | --------------------------
|j) | Revenue Recognition Policy







F-12



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|   |                                  
|-- | ---------------------------------
|k) | Research and Development expenses





|   |             
|-- | ------------
|l) | Income Taxes





|   |           
|-- | ----------
|m) | Impairment







|   |                    
|-- | -------------------
|n) | Debt Issuance Costs





|   |                        
|-- | -----------------------
|o) | Self-Insurance Programs





|   |                 
|-- | ----------------
|p) | Use of Estimates



F-13



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|   |                      
|-- | ---------------------
|q) | Concentration of Risk









|   |                    
|-- | -------------------
|r) | Legal Contingencies







|   |                                                 
|-- | ------------------------------------------------
|s) | Earnings per Ordinary share and Preference share









|   |                       
|-- | ----------------------
|t) | Employee Benefit Plans

Employers
Accounting for Defined Benefit Pension and Other Postretirement
Plans  an amendment of FASB Statements No. 87,
88, 106, and 132(R)


F-14



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|   |                   
|-- | ------------------
|u) | Stock Option Plans

Share-Based Payment Accounting for Stock Issued to Employees




|   |                      
|-- | ---------------------
|v) | Recent Pronouncements

Fair Value Measurements


Accounting for Uncertainty in Income
Taxes  an interpretation of FASB Statement
No. 109 Accounting for Income Taxes Accounting
for Income Taxes.




F-15



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|   |                                                                     
|-- | --------------------------------------------------------------------
|2. | Transformation of Legal Form and Conversion of Preference
    Shares










F-16



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




ex gratia  


ex gratia




|   |                              
|-- | -----------------------------
|3. | Acquisitions and Divestitures

RCG Acquisition




F-17



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|                                                                 |  |   |           |  
|---------------------------------------------------------------- |  | - | --------- | -
|Assets held for sale                                             |  | $ | 330,092   |  
|Other current assets                                             |  |   | 413,937   |  
|Property, plant and equipment                                    |  |   | 301,498   |  
|Intangible assets and other assets                               |  |   | 149,485   |  
|Goodwill                                                         |  |   | 3,381,901 |  
|Accounts payable, accrued expenses and other current liabilities |  |   | (276,184  | )
|Income tax payable and deferred taxes                            |  |   | (63,939   | )
|Long-term debt and capital lease obligations                     |  |   | (3,882    | )
|Other liabilities                                                |  |   | (75,289   | )
|                                                                 |  |   |          
|Total allocation of acquisition cost                             |  | $ | 4,157,619 |  
|                                                                 |  |   |          

Divestitures






Pro Forma Financial Information




F-18



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                         |               |      |           |      |      |   |           |      | 
|---------------------------------------- | ------------- | ---- | --------- | ---- | ---- | - | --------- | ---- | 
|Unaudited                                |               | 2006 |           |      | 2005 |  
|                                         |               |      |           |      |      |  
|Pro forma net revenue                    |               | $    | 8,809,573 |      |      | $ | 7,983,941 |     
|Pro forma net income                     |               |      | 536,223   |      |      |   | 449,481   |     
|Pro forma net income per ordinary share: |               |      |           |      |      |   |           |     
|                                         | Basic         |      |           | 5.47 |      |   |           | 4.62 | 
|                                         | Fully Diluted |      |           | 5.43 |      |   |           | 4.59 | 

Other Acquisitions


® ®








|   |                           
|-- | --------------------------
|4. | Related Party Transactions



|   |                   
|-- | ------------------
|a) | Service Agreements





F-19



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)







|   |         
|-- | --------
|b) | Products





|   |                                   
|-- | ----------------------------------
|c) | Financing Provided by Fresenius AG





|   |      
|-- | -----
|d) | Other









|   |            
|-- | -----------
|5. | Inventories



|                                       |             |      |         |         |      |   |         |         | 
|-------------------------------------- | ----------- | ---- | ------- | ------- | ---- | - | ------- | ------- | 
|                                       |             | 2006 |         |         | 2005 |  
|                                       |             |      |         |         |      |  
|Raw materials and purchased components |             | $    | 108,584 |         |      | $ | 93,889  |        
|Work in process                        |             |      | 41,272  |         |      |   | 33,073  |        
|Finished goods                         |             |      | 269,496 |         |      |   | 223,356 |        
|Health care supplies                   |             |      | 104,577 |         |      |   | 80,575  |        
|                                       |             |      |         |         |      |  
|                                       | Inventories |      | $       | 523,929 |      |   | $       | 430,893 | 
|                                       |             |      |         |         |      |  

F-20



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






6.               Property,
Plant and Equipment




|                                                                       |  |      |            |   |      |   |            |  
|---------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ---------- | -
|                                                                       |  | 2006 |            |   | 2005 |  
|                                                                       |  |      |            |   |      |  
|Land and improvements                                                  |  | $    | 32,492     |   |      | $ | 26,564     |  
|Buildings and improvements                                             |  |      | 1,123,691  |   |      |   | 812,841    |  
|Machinery and equipment                                                |  |      | 1,844,299  |   |      |   | 1,381,427  |  
|Machinery, equipment and rental equipment under capitalized
    leases |  |      | 17,044     |   |      |   | 13,468     |  
|Construction in progress                                               |  |      | 255,994    |   |      |   | 117,331    |  
|                                                                       |  |      |            |   |      |  
|                                                                       |  |      | 3,273,520  |   |      |   | 2,351,631  |  
|Accumulated depreciation                                               |  |      | (1,551,128 | ) |      |   | (1,135,873 | )
|                                                                       |  |      |            |   |      |  
|Property, plant and equipment, net                                     |  | $    | 1,722,392  |   |      | $ | 1,215,758  |  
|                                                                       |  |      |            |   |      |  







|   |                                     
|-- | ------------------------------------
|7. | Other Intangible Assets and Goodwill





F-21



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|                              |  |                   |         |  |                   |   |          |          |  |   |              |  |  |   |          |  
|----------------------------- |  | ----------------- | ------- |  | ----------------- | - | -------- | -------- |  | - | ------------ |  |  | - | -------- | -
|                              |  | December 31, 2006 |         |  | December 31, 2005 |  
|                              |  |                   |         |  |                   |  
|                              |  | Gross             |         |  |                   |   | Gross    |          |  |  
|                              |  | Carrying          |         |  | Accumulated       |   |          | Carrying |  |   | Accumulated  | 
|                              |  | Amount            |         |  | Amortization      |   |          | Amount   |  |   | Amortization | 
|                              |  |                   |         |  |                   |   |          |          |  |   |              | 
|Amortizable Intangible Assets |  |                   |         |  |                   |   |          |          |  |   |              |  |  |   |          |  
|Non-compete Agreements        |  | $                 | 203,123 |  |                   | $ | (118,553 | )        |  | $ |             |  |  | $ |         |  
|Technology                    |  |                   | 64,800  |  |                   |   | (406     | )        |  |   |             |  |  |   |         |  
|Patient relationships         |  |                   |        |  |                   |   |         |          |  |   | 164,188      |  |  |   | (114,192 | )
|Other                         |  |                   | 305,509 |  |                   |   | (233,099 | )        |  |   | 205,406      |  |  |   | (108,517 | )
|                              |  |                   |         |  |                   |   |          |          |  |   |              | 
|                              |  | $                 | 573,432 |  |                   | $ | (352,058 | )        |  | $ | 369,594      |  |  | $ | (222,709 | )
|                              |  |                   |         |  |                   |   |          |          |  |   |              | 

|                                  |  |          |         |  |  |  |          |  |  |   |         |  |  |  |  | 
|--------------------------------- |  | -------- | ------- |  |  |  | -------- |  |  | - | ------- |  |  |  |  | 
|                                  |  | Carrying |         |  |  |  | Carrying |  |  |  
|                                  |  | Amount   |         |  |  |  | Amount   |  |  |  
|                                  |  |          |         |  |  |  |          |  |  |  
|Non-amortizable Intangible Assets |  |          |         |  |  |  |          |  |  |   |         |  |  |  |  | 
|Tradename                         |  | $        | 222,122 |  |  |  |          |  |  | $ | 220,935 |  |  |  |  | 
|Management contracts              |  |          | 217,869 |  |  |  |          |  |  |   | 217,869 |  |  |  |  | 
|                                  |  |          |         |  |  |  |          |  |  |   |         | 
|                                  |  | $        | 439,991 |  |  |  |          |  |  | $ | 438,804 |  |  |  |  | 
|                                  |  |          |         |  |  |  |          |  |  |   |         | 
|Total Intangible Assets           |  | $        | 661,365 |  |  |  |          |  |  | $ | 585,689 |  |  |  |  | 
|                                  |  |          |         |  |  |  |          |  |  |   |         | 



Amortization Expense


|     |  |   |        | 
|---- |  | - | ------ | 
|2004 |  | $ | 32,853 | 
|     |  |   |       
|2005 |  | $ | 40,349 | 
|     |  |   |       
|2006 |  | $ | 43,210 | 
|     |  |   |       

Estimated Amortization Expense


|     |  |   |        | 
|---- |  | - | ------ | 
|2007 |  | $ | 40,577 | 
|     |  |   |       
|2008 |  | $ | 38,438 | 
|     |  |   |       
|2009 |  | $ | 35,927 | 
|     |  |   |       
|2010 |  | $ | 34,138 | 
|     |  |   |       
|2011 |  | $ | 33,765 | 
|     |  |   |       

F-22



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Goodwill


®


|                                |                                             |         |           |           |               |   |         |         |   |   |           |           |  
|------------------------------- | ------------------------------------------- | ------- | --------- | --------- | ------------- | - | ------- | ------- | - | - | --------- | --------- | -
|                                |                                             | North   |           |           |               |   |        
|                                |                                             | America |           |           | International |   |         | Total   |  
|                                |                                             |         |           |           |               |   |         |         |  
|Balance as of January 1, 2005   |                                             |         | 3,035,697 |           |               | $ | 409,455 |         |   | $ | 3,445,152 |          
|                                | Goodwill acquired                           |         |           | 49,410    |               |   |         | 22,715  |   |   |           | 72,125    |  
|                                | Reclassifications                           |         |           | (8,882    | )             |   |         | (390    | ) |   |           | (9,272    | )
|                                | Foreign Currency Translation Adjustment     |         |           | 108       |               |   |         | (51,236 | ) |   |           | (51,128   | )
|                                |                                             |         |           |           |               |   |         |         |  
|Balance as of December 31, 2005 |                                             | $       | 3,076,333 |           |               | $ | 380,544 |         |   | $ | 3,456,877 |          
|                                |                                             |         |           |           |               |   |         |         |  
|                                | Goodwill acquired RCG (excl. divestitures)  |         |           | 3,381,901 |               |   |         |        |   |   |           | 3,381,901 |  
|                                | Goodwill acquired other                     |         |           | 68,106    |               |   |         | 36,843  |   |   |           | 104,949   |  
|                                | Goodwill disposed of                        |         |           | (119,942  | )             |   |         |        |   |   |           | (119,942  | )
|                                | Reclassification from Patient Relationships |         |           | 35,240    |               |   |         |        |   |   |           | 35,240    |  
|                                | Other Reclassifications                     |         |           | (3,603    | )             |   |         | (424    | ) |   |           | (4,027    | )
|                                | Foreign Currency Translation Adjustment     |         |           | (40       | )             |   |         | 37,203  |   |   |           | 37,163    |  
|                                |                                             |         |           |           |               |   |         |         |  
|Balance as of December 31, 2006 |                                             | $       | 6,437,995 |           |               | $ | 454,166 |         |   | $ | 6,892,161 |          
|                                |                                             |         |           |           |               |   |         |         |  



|   |                                               
|-- | ----------------------------------------------
|8. | Accrued Expenses and Other Current Liabilities



|                                                     |  |      |           |  |      |   |         | 
|---------------------------------------------------- |  | ---- | --------- |  | ---- | - | ------- | 
|                                                     |  | 2006 |           |  | 2005 |  
|                                                     |  |      |           |  |      |  
|Accrued salaries and wages                           |  | $    | 283,859   |  |      | $ | 214,873 | 
|Unapplied cash and receivable credits                |  |      | 148,985   |  |      |   | 73,897  | 
|Accrued insurance                                    |  |      | 124,422   |  |      |   | 75,545  | 
|Special charge for legal matters                     |  |      | 115,000   |  |      |   | 117,541 | 
|Other                                                |  |      | 522,672   |  |      |   | 356,912 | 
|                                                     |  |      |           |  |      |  
|Total accrued expenses and other current liabilities |  | $    | 1,194,938 |  |      | $ | 838,768 | 
|                                                     |  |      |           |  |      |  



F-23



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|   |                                                                         
|-- | ------------------------------------------------------------------------
|9. | Short-Term Borrowings and Short-Term Borrowings from Related
    Parties



|                                                |  |      |         |  |      |   |         | 
|----------------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                                                |  | 2006 |         |  | 2005 |  
|                                                |  |      |         |  |      |  
|Borrowings under lines of credit                |  | $    | 65,231  |  |      | $ | 57,113  | 
|Accounts receivable facility                    |  |      | 266,000 |  |      |   | 94,000  | 
|                                                |  |      |         |  |      |  
|Short-term borrowings                           |  |      | 331,231 |  |      |   | 151,113 | 
|Short-term borrowings from related parties      |  |      | 4,575   |  |      |   | 18,757  | 
|                                                |  |      |         |  |      |  
|Short-term borrowings including related parties |  | $    | 335,806 |  |      | $ | 169,870 | 
|                                                |  |      |         |  |      |  

Short-term Borrowings


Lines of Credit






Accounts Receivable Facility






F-24



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Short-term Borrowings from related parties








 






|    |                                             
|--- | --------------------------------------------
|10. | Long-term Debt and Capital Lease Obligations



|                          |  |      |           |   |      |   |          |  
|------------------------- |  | ---- | --------- | - | ---- | - | -------- | -
|                          |  | 2006 |           |   | 2005 |  
|                          |  |      |           |   |      |  
|Senior Credit Agreement   |  | $    | 3,564,702 |   |      | $ | 470,700  |  
|Euro Notes                |  |      | 263,400   |   |      |   | 235,940  |  
|EIB Agreements            |  |      | 84,618    |   |      |   | 48,806   |  
|Capital lease obligations |  |      | 8,286     |   |      |   | 4,596    |  
|Other                     |  |      | 68,470    |   |      |   | 73,327   |  
|                          |  |      |           |   |      |  
|                          |  |      | 3,989,476 |   |      |   | 833,369  |  
|Less current maturities   |  |      | (160,135  | ) |      |   | (126,269 | )
|                          |  |      |           |   |      |  
|                          |  | $    | 3,829,341 |   |      | $ | 707,100  |  
|                          |  |      |           |   |      |  

2006 Senior Credit Agreement




F-25



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|                 |  |                          |           |  |                     |   |           |      |  |   |           |  |  |   |         | 
|---------------- |  | ------------------------ | --------- |  | ------------------- | - | --------- | ---- |  | - | --------- |  |  | - | ------- | 
|                 |  | Maximum Amount Available |           |  | Balance Outstanding |  
|                 |  | December 31,             |           |  | December 31,        |  
|                 |  |                          |           |  |                     |  
|                 |  | 2006                     |           |  | 2005                |   |           | 2006 |  |   | 2005      | 
|                 |  |                          |           |  |                     |   |           |      |  |   |           | 
|Revolving Credit |  | $                        | 1,000,000 |  |                     | $ | 750,000   |      |  | $ | 67,827    |  |  | $ | 45,700  | 
|Term Loan A/ A-1 |  |                          | 1,760,000 |  |                     |   | 425,000   |      |  |   | 1,760,000 |  |  |   | 425,000 | 
|Term Loan B      |  |                          | 1,736,875 |  |                     |   |          |      |  |   | 1,736,875 |  |  |   |        | 
|                 |  |                          |           |  |                     |   |           |      |  |   |           | 
|                 |  | $                        | 4,496,875 |  |                     | $ | 1,175,000 |      |  | $ | 3,564,702 |  |  | $ | 470,700 | 
|                 |  |                          |           |  |                     |   |           |      |  |   |           | 







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a 5-year $1,000,000 revolving credit facility (of which up to
    $250,000 is available for letters of credit, up to $300,000 is
    available for borrowings in certain non-U.S. currencies, up to
    $150,000 is available as swing line loans in U.S. dollars, up to
    $250,000 is available as a competitive loan facility and up to
    $50,000 is available as swing line loans in certain non-U.S.
    currencies, the total of which cannot exceed $1,000,000) which
    will be due and payable on March 31, 2011.                                                                                                                                                                                                                                                                                                             
|
| |  | a 5-year term loan facility (Loan A) of $1,850,000,
    also scheduled to mature on March 31, 2011. The 2006 Senior
    Credit Agreement requires 19 quarterly payments on Loan A of
    $30,000 each that permanently reduce the term loan facility
    which began June 30, 2006 and continue through
    December 31, 2010. The remaining amount outstanding is due
    on March 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | a 7-year term loan facility (Loan B) of $1,750,000
    scheduled to mature on March 31, 2013. The terms of the
    2006 Senior Credit Agreement require 28 quarterly payments on
    Loan B that permanently reduce the term loan facility. The
    repayment began June 30, 2006. The first 24 quarterly
    payments will be equal to one quarter of one percent (0.25%) of
    the original principal balance outstanding, payments
    25 through 28 will be equal to twenty-three and one
    half percent (23.5%) of the original principal balance
    outstanding with the final payment due on March 31, 2013,
    subject to an early repayment requirement on March 1, 2011
    if the Trust Preferred Securities due June 15, 2011
    are not repaid or refinanced or their maturity is not extended
    prior to that date.







F-26



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






Euro Notes


Schuldscheindarlehen    


European Investment Bank Agreements


 


 






F-27



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Annual Payments




|           |  |   |           | 
|---------- |  | - | --------- | 
|2007       |  | $ | 160,135   | 
|2008       |  |   | 151,808   | 
|2009       |  |   | 412,150   | 
|2010       |  |   | 145,198   | 
|2011       |  |   | 1,370,789 | 
|Thereafter |  |   | 1,749,396 | 
|           |  |   |          
|           |  | $ | 3,989,476 | 
|           |  |   |          



|    |                       
|--- | ----------------------
|11. | Employee Benefit Plans

General












F-28



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Defined Benefit Pension Plans








|                                               |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                               |  | 2006 |         |   | 2005 |   |         | 2004 | 
|                                               |  |      |         |   |      |   |         |      | 
|Change in benefit obligation:                  |  |      |         |   |      |   |         |      |  |   |         |  
|Benefit obligation at beginning of year        |  | $    | 320,975 |   |      | $ | 288,862 |      |  | $ | 241,240 |  
|Foreign currency translation                   |  |      | 10,843  |   |      |   | (11,233 | )    |  |   | 4,939   |  
|Service cost                                   |  |      | 8,113   |   |      |   | 5,103   |      |  |   | 4,269   |  
|Interest cost                                  |  |      | 16,945  |   |      |   | 15,927  |      |  |   | 14,816  |  
|Transfer of plan participants                  |  |      | (728    | ) |      |   | (36     | )    |  |   | (261    | )
|Actuarial (gain) loss                          |  |      | (16,194 | ) |      |   | 27,170  |      |  |   | 28,165  |  
|Benefits paid                                  |  |      | (5,579  | ) |      |   | (4,818  | )    |  |   | (4,306  | )
|                                               |  |      |         |   |      |   |         |      | 
|Benefit obligation at end of year              |  | $    | 334,375 |   |      | $ | 320,975 |      |  | $ | 288,862 |  
|                                               |  |      |         |   |      |   |         |      | 
|Change of plan assets:                         |  |      |         |   |      |   |         |      |  |   |         |  
|Fair value of plan assets at beginning of year |  | $    | 196,013 |   |      | $ | 166,952 |      |  | $ | 135,247 |  
|Actual return on plan assets                   |  |      | 18,128  |   |      |   | 7,481   |      |  |   | 9,642   |  
|Employer contributions                         |  |      | 10,982  |   |      |   | 25,627  |      |  |   | 25,633  |  
|Benefits paid                                  |  |      | (4,756  | ) |      |   | (4,047  | )    |  |   | (3,570  | )
|                                               |  |      |         |   |      |   |         |      | 
|Fair value of plan assets at end of year       |  | $    | 220,367 |   |      | $ | 196,013 |      |  | $ | 166,952 |  
|                                               |  |      |         |   |      |   |         |      | 
|Funded status at year end                      |  | $    | 114,008 |   |      | $ | 124,962 |      |  | $ | 121,910 |  
|                                               |  |      |         |   |      |   |         |      | 



F-29



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                                        |  |      |         |   |      |   |          |      |  |   |         |  
|--------------------------------------- |  | ---- | ------- | - | ---- | - | -------- | ---- |  | - | ------- | -
|                                        |  | 2006 |         |   | 2005 |   |          | 2004 | 
|                                        |  |      |         |   |      |   |          |      | 
|Funded status at end of year            |  | $    | 114,008 |   |      | $ | 124,962  |      |  | $ | 121,910 |  
|Unrecognized net loss                   |  |      | (84,104 | ) |      |   | (108,440 | )    |  |   | (85,945 | )
|Unrecognized prior service cost         |  |      |        |   |      |   | (795     | )    |  |   |        |  
|Additional Minimum Liability            |  |      | 65,664  |   |      |   | 92,975   |      |  |   | 72,160  |  
|Effect of adoption of FAS 158           |  |      | 18,440  |   |      |   |         |      |  |   |        |  
|                                        |  |      |         |   |      |   |          |      | 
|Total Pension Liability at December 31, |  | $    | 114,008 |   |      | $ | 108,702  |      |  | $ | 108,125 |  
|                                        |  |      |         |   |      |   |          |      | 



|                                |                                                |      |         |  |      |   |         |        |  |   |         |        | 
|------------------------------- | ---------------------------------------------- | ---- | ------- |  | ---- | - | ------- | ------ |  | - | ------- | ------ | 
|                                |                                                | 2006 |         |  | 2005 |   |         | 2004   | 
|                                |                                                |      |         |  |      |   |         |        | 
|Fair value of plan assets       |                                                | $    | 220,367 |  |      | $ | 196,013 |        |  | $ | 166,952 |       
|Accumulated benefit obligation  |                                                |      | 315,935 |  |      |   | 304,715 |        |  |   | 213,995 |       
|                                |                                                |      |         |  |      |   |         |        | 
|Minimum Liability               |                                                |      | 95,568  |  |      |   | 108,702 |        |  |   | 47,043  |       
|Accrued/(prepaid) benefit costs |                                                |      | 29,904  |  |      |   | 15,727  |        |  |   | (25,117 | )     
|                                |                                                |      |         |  |      |   |         |        | 
|Additional Minimum Liability    |                                                | $    | 65,664  |  |      | $ | 92,975  |        |  | $ | 72,160  |       
|                                |                                                |      |         |  |      |   |         |        | 
|                                | Thereof intangible assets                      |      |         |  |      |   | $       | 795    |  |   | $       |       | 
|                                |                                                |      |         |  |      |   |         |        | 
|                                | Thereof accumulated other comprehensive income |      |         |  |      |   | $       | 92,180 |  |   | $       | 72,160 | 
|                                |                                                |      |         |  |      |   |         |        | 



|                                                   |  |            |        |  |            |   |         |            |  |   |             |   |  |              |       |  |  |   |        | 
|-------------------------------------------------- |  | ---------- | ------ |  | ---------- | - | ------- | ---------- |  | - | ----------- | - |  | ------------ | ----- |  |  | - | ------ | 
|                                                   |  |            |        |  |            |   |         | Foreign    |  |   |            
|                                                   |  |            |        |  |            |   |         | Currency   |  |   |            
|                                                   |  | January 1, |        |  | Additions/ |   |         | Adjustment |  |   | Translation |   |  | December 31, |      
|                                                   |  | 2006       |        |  | Releases   |   |         | FAS 158    |  |   | Adjustment  |   |  | 2006         |      
|                                                   |  |            |        |  |            |   |         |            |  |   |             |   |  |              |      
|Additional Minimum Liability                       |  | $          | 92,180 |  |            | $ | (28,189 | )          |  | $ | (65,664     | ) |  | $            | 1,673 |  |  | $ |       | 
|Actuarial losses                                   |  |            |       |  |            |   |        |            |  |   | 84,104      |   |  |              |      |  |  |   | 84,104 | 
|                                                   |  |            |        |  |            |   |         |            |  |   |             |   |  |              |      
|Adjustments related to pension
    liabilities (1) |  | $          | 92,180 |  |            | $ | (28,189 | )          |  | $ | 18,440      |   |  | $            | 1,673 |  |  | $ | 84,104 | 
|                                                   |  |            |        |  |            |   |         |            |  |   |             |   |  |              |      






|    |                                                                                          
|--- | -----------------------------------------------------------------------------------------
|(1) | See Note 21 for the tax effects on other comprehensive
    income recognized during 2006.





|                                               |  |                    |         |   |             |   |                   |               |  |   |         |  
|---------------------------------------------- |  | ------------------ | ------- | - | ----------- | - | ----------------- | ------------- |  | - | ------- | -
|                                               |  | Before Adoption of |         |   |             |   | After Adoption of |              
|                                               |  | Statement 158      |         |   | Adjustments |   |                   | Statement 158 | 
|                                               |  |                    |         |   |             |   |                   |               | 
|Deferred tax assets                            |  | $                  | 26,058  |   |             | $ | 7,134             |               |  | $ | 33,192  |  
|Accrued expenses and other current liabilities |  |                    |        |   |             |   | 1,692             |               |  |   | 1,692   |  
|Pension liabilities                            |  |                    | 95,568  |   |             |   | 16,748            |               |  |   | 112,316 |  
|Accumulated other comprehensive loss           |  |                    | (39,606 | ) |             |   | (11,306           | )             |  |   | (50,912 | )

F-30



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                              |  |      |      |   |      |  |      |      |  |  |      |  
|----------------------------- |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                              |  | 2006 |      |   | 2005 |  |      | 2004 | 
|                              |  |      |      |   |      |  |      |      | 
|Discount rate                 |  |      | 5.52 | % |      |  | 5.22 | %    |  |  | 5.62 | %
|Rate of compensation increase |  |      | 4.18 | % |      |  | 4.22 | %    |  |  | 4.25 | %



|                                         |  |      |         |   |      |   |         |      |  |   |         |  
|---------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                         |  | 2006 |         |   | 2005 |   |         | 2004 | 
|                                         |  |      |         |   |      |   |         |      | 
|Components of net periodic benefit cost: |  |      |         |   |      |   |         |      |  |   |         |  
|Service cost                             |  | $    | 8,113   |   |      | $ | 5,103   |      |  | $ | 4,269   |  
|Interest cost                            |  |      | 16,945  |   |      |   | 15,927  |      |  |   | 14,816  |  
|Expected return on plan assets           |  |      | (15,361 | ) |      |   | (13,163 | )    |  |   | (10,219 | )
|Amortization unrealized losses           |  |      | 8,420   |   |      |   | 6,753   |      |  |   | 4,712   |  
|Amortization of prior service cost       |  |      | 846     |   |      |   | 210     |      |  |   |        |  
|Settlement loss                          |  |      | 238     |   |      |   |        |      |  |   |        |  
|                                         |  |      |         |   |      |   |         |      | 
|Net periodic benefit costs               |  | $    | 19,201  |   |      | $ | 14,830  |      |  | $ | 13,578  |  
|                                         |  |      |         |   |      |   |         |      | 



|                               |  |      |      |   |      |  |      |      |  |  |      |  
|------------------------------ |  | ---- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                               |  | 2006 |      |   | 2005 |  |      | 2004 | 
|                               |  |      |      |   |      |  |      |      | 
|Discount rate                  |  |      | 5.16 | % |      |  | 5.61 | %    |  |  | 6.00 | %
|Expected return of plan assets |  |      | 7.50 | % |      |  | 7.50 | %    |  |  | 7.50 | %
|Rate of compensation increase  |  |      | 4.18 | % |      |  | 4.22 | %    |  |  | 4.25 | %



|          |  |   |        | 
|--------- |  | - | ------ | 
|2007      |  | $ | 6,568  | 
|2008      |  |   | 7,619  | 
|2009      |  |   | 8,476  | 
|2010      |  |   | 9,701  | 
|2011      |  |   | 10,488 | 
|2012-2016 |  |   | 73,048 | 



Plan Investment Policy and Strategy




F-31



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)








|                          |                   |               |     |    |               |  |     |                   |   |  |     |    |  
|------------------------- | ----------------- | ------------- | --- | -- | ------------- |  | --- | ----------------- | - |  | --- | -- | -
|                          |                   | Allocation in |     |    | Allocation in |  |     | Target allocation |  
|                          |                   | 2006 in %     |     |    | 2005 in %     |  |     | in %              |  
|                          |                   |               |     |    |               |  |     |                   |  
|Categories of plan assets |                   |               |     |    |               |  |     |                   |   |  |     |   
|                          | Equity securities |               |     | 38 | %             |  |     | 44                | % |  |     | 36 | %
|                          | Debt securities   |               |     | 62 | %             |  |     | 56                | % |  |     | 64 | %
|                          |                   |               |     |    |               |  |     |                   |  
|Total                     |                   |               | 100 | %  |               |  | 100 | %                 |   |  | 100 | % 
|                          |                   |               |     |    |               |  |     |                   |  

Defined Contribution Plans






|    |                                                  
|--- | -------------------------------------------------
|12. | Mandatorily Redeemable Trust Preferred Securities

(D-GmbH) D-GmbH.




F-32



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






|                                         |  |        |      |  |        |   |            |           |  |  |            |   |  |      |                  |  |      |   |           |  |  |   |           | 
|---------------------------------------- |  | ------ | ---- |  | ------ | - | ---------- | --------- |  |  | ---------- | - |  | ---- | ---------------- |  | ---- | - | --------- |  |  | - | --------- | 
|                                         |  |        |      |  |        |   |            | Mandatory |  |  |            |   | 
|                                         |  | Year   |      |  | Stated |   |            | Interest  |  |  | Redemption |   |  |      |                  | 
|                                         |  | Issued |      |  | Amount |   |            | Rate      |  |  | Date       |   |  | 2006 |                  |  | 2005 |  
|                                         |  |        |      |  |        |   |            |           |  |  |            |   |  |      |                  |  |      |  
|Fresenius Medical Care Capital Trust II  |  |        | 1998 |  |        | $ | 450,000    |           |  |  | 77/8       | % |  |      | February 1, 2008 |  |      |   | 434,942   |  |  |   | 431,762   | 
|Fresenius Medical Care Capital Trust III |  |        | 1998 |  |        |   | DM 300,000 |           |  |  | 73/8       | % |  |      | February 1, 2008 |  |      |   | 202,011   |  |  |   | 180,951   | 
|Fresenius Medical Care Capital Trust IV  |  |        | 2001 |  |        | $ | 225,000    |           |  |  | 77/8       | % |  |      | June 15, 2011    |  |      |   | 223,300   |  |  |   | 222,917   | 
|Fresenius Medical Care Capital Trust V   |  |        | 2001 |  |        |   | 300,000   |           |  |  | 73/8       | % |  |      | June 15, 2011    |  |      |   | 393,575   |  |  |   | 352,234   | 
|                                         |  |        |      |  |        |   |            |           |  |  |            |   |  |      |                  |  |      |  
|                                         |  |        |      |  |        |   |            |           |  |  |            |   |  |      |                  |  |      | $ | 1,253,828 |  |  | $ | 1,187,864 | 
|                                         |  |        |      |  |        |   |            |           |  |  |            |   |  |      |                  |  |      |  



|    |                     
|--- | --------------------
|13. | Shareholders Equity

Capital Stock


Grundkapital  


 


genehmigtes Kapital


bedingtes Kapital




F-33



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Authorized Capital












Conditional Capital


 


(Bezugsrechte) 


F-34



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




 


  


Dividends


Handelsgesetzbuch




 


 


 


F-35



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|    |                   
|--- | ------------------
|14. | Earnings Per Share



|                                          |                                                                            |      |         |            |      |   |         |            |  |   |         |            | 
|----------------------------------------- | -------------------------------------------------------------------------- | ---- | ------- | ---------- | ---- | - | ------- | ---------- |  | - | ------- | ---------- | 
|                                          |                                                                            | 2006 |         |            | 2005 |   |         | 2004       | 
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Numerators:                               |                                                                            |      |         |            |      |   |         |            |  |   |         |           
|Net income                                |                                                                            | $    | 536,746 |            |      | $ | 454,952 |            |  | $ | 401,998 |           
|less:                                     |                                                                            |      |         |            |      |   |         |            |  |   |         |           
|                                          | Dividend Preference on Preference shares                                   |      |         | 90         |      |   |         | 2,000      |  |   |         | 1,959      | 
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Income available to all class of shares   |                                                                            | $    | 536,656 |            |      | $ | 452,952 |            |  | $ | 400,039 |           
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Denominators:                             |                                                                            |      |         |            |      |   |         |            |  |   |         |           
|Weighted average number of:               |                                                                            |      |         |            |      |   |         |            |  |   |         |           
|                                          | Ordinary shares outstanding                                                |      |         | 96,873,968 |      |   |         | 70,000,000 |  |   |         | 70,000,000 | 
|                                          | Preference shares outstanding                                              |      |         | 1,191,792  |      |   |         | 26,789,816 |  |   |         | 26,243,059 | 
|                                          |                                                                            |      |         |            |      |   |         |            | 
|                                          | Total weighted average shares outstanding                                  |      |         | 98,065,760 |      |   |         | 96,789,816 |  |   |         | 96,243,059 | 
|                                          | Potentially dilutive Ordinary shares                                       |      |         | 557,883    |      |   |         |            |  |   |         |            | 
|                                          | Potentially dilutive Preference shares                                     |      |         | 46,992     |      |   |         | 779,330    |  |   |         | 421,908    | 
|                                          |                                                                            |      |         |            |      |   |         |            | 
|                                          | Total weighted average ordinary shares outstanding assuming
    dilution   |      |         | 97,431,851 |      |   |         | 70,000,000 |  |   |         | 70,000,000 | 
|                                          | Total weighted average Preference shares outstanding assuming
    dilution |      |         | 1,238,784  |      |   |         | 27,569,146 |  |   |         | 26,664,967 | 
|Basic income per Ordinary share           |                                                                            | $    | 5.47    |            |      | $ | 4.68    |            |  | $ | 4.16    |           
|Plus preference per Preference share      |                                                                            |      | 0.08    |            |      |   | 0.07    |            |  |   | 0.07    |           
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Basic income per Preference Share         |                                                                            | $    | 5.55    |            |      | $ | 4.75    |            |  | $ | 4.23    |           
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Fully diluted income per Ordinary share   |                                                                            | $    | 5.44    |            |      | $ | 4.64    |            |  | $ | 4.14    |           
|Plus preference per Preference share      |                                                                            |      | 0.08    |            |      |   | 0.08    |            |  |   | 0.07    |           
|                                          |                                                                            |      |         |            |      |   |         |            | 
|Fully diluted income per Preference share |                                                                            | $    | 5.52    |            |      | $ | 4.72    |            |  | $ | 4.21    |           
|                                          |                                                                            |      |         |            |      |   |         |            | 



|    |              
|--- | -------------
|15. | Stock Options



F-36



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                            |                                                                                                                                               |             |   |         |      |  |   |         |      | 
|--------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | ----------- | - | ------- | ---- |  | - | ------- | ---- | 
|                            |                                                                                                                                               | 2005        |   |         | 2004 | 
|                            |                                                                                                                                               |             |   |         |      | 
|Net income:                 |                                                                                                                                               |             |   |         |      |  |   |        
|                            | As reported                                                                                                                                   |             | $ | 454,952 |      |  | $ | 401,998 |     
|                            | Add: Stock-based employee compensation expense included in
    reported net income, net of related tax effects                                |             |   | 1,090   |      |  |   | 1,751   |     
|                            | Deduct: Total stock-based employee compensation expense
    determined under fair value method for all awards, net of
    related tax effects |             |   | (8,302  | )    |  |   | (7,559  | )   
|                            |                                                                                                                                               |             |   |         |      | 
|                            | Pro forma                                                                                                                                     |             | $ | 447,740 |      |  | $ | 396,190 |     
|                            |                                                                                                                                               |             |   |         |      | 
|Basic earnings per:         |                                                                                                                                               |             |   |         |      |  |   |        
|                            | Ordinary share                                                                                                                                |             |   |         |      |  |   |         |     
|                            |                                                                                                                                               | As reported |   | $       | 4.68 |  |   | $       | 4.16 | 
|                            |                                                                                                                                               | Pro forma   |   | $       | 4.61 |  |   | $       | 4.10 | 
|                            | Preference share                                                                                                                              |             |   |         |      |  |   |         |     
|                            |                                                                                                                                               | As reported |   | $       | 4.75 |  |   | $       | 4.23 | 
|                            |                                                                                                                                               | Pro forma   |   | $       | 4.68 |  |   | $       | 4.17 | 
|Fully diluted earnings per: |                                                                                                                                               |             |   |         |      |  |   |        
|                            | Ordinary share                                                                                                                                |             |   |         |      |  |   |         |     
|                            |                                                                                                                                               | As reported |   | $       | 4.64 |  |   | $       | 4.14 | 
|                            |                                                                                                                                               | Pro forma   |   | $       | 4.57 |  |   | $       | 4.08 | 
|                            | Preference share                                                                                                                              |             |   |         |      |  |   |         |     
|                            |                                                                                                                                               | As reported |   | $       | 4.72 |  |   | $       | 4.21 | 
|                            |                                                                                                                                               | Pro forma   |   | $       | 4.64 |  |   | $       | 4.15 | 

Stock Option and other Share Based Plans




Incentive plan




F-37



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Fresenius Medical Care AG & Co. KGaA Stock Option Plan
2006


 




 




Fresenius Medical Care 2001 International Stock Option
Plan


 


F-38



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


     






F-39



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                                                                                                 |                                              |                |       |          |       |  |          |       |  |  |       |        | 
|------------------------------------------------------------------------------------------------ | -------------------------------------------- | -------------- | ----- | -------- | ----- |  | -------- | ----- |  |  | ----- | ------ | 
|                                                                                                 |                                              |                |       | Weighted |       |  | Weighted |      
|                                                                                                 |                                              |                |       | Average  |       |  | Average  |      
|Reconciliation of options for preference shares                                                  |                                              |                |       | Exercise |       |  | Exercise |      
|converted to options for ordinary shares                                                         |                                              | Options        |       |          | Price |  |          | Price | 
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|                                                                                                 |                                              | (in thousands) |       |          |      |  |          | $     | 
|Balance at December 31, 2005                                                                     |                                              |                | 4,103 |          |       |  | 47.88    |       |  |  | 63.06 |       
|                                                                                                 | Forfeited prior to conversion                |                |       | 5        |       |  |          | 41.00 |  |  |       | 54.00  | 
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|                                                                                                 | Eligible for conversion                      |                |       | 4,098    |       |  |          | 47.94 |  |  |       | 63.13  | 
|                                                                                                 | Options not converted                        |                |       | 235      |       |  |          | 49.18 |  |  |       | 64.77  | 
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|                                                                                                 | Options converted                            |                |       | 3,863    |       |  |          |       |  |  |       |        | 
|                                                                                                 | Reduction due to impact of conversion ratios |                |       | 1,014    |       |  |          |       |  |  |       |        | 
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|Balance of options outstanding after conversion into ordinary
    shares as of February 10, 2006 |                                              |                | 2,849 |          |       |  | 64.22    |       |  |  | 84.59 |       
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|                                                                                                 | Granted                                      |                |       | 772      |       |  |          | 91.63 |  |  |       | 120.68 | 
|                                                                                                 | Exercised                                    |                |       | 520      |       |  |          | 61.39 |  |  |       | 80.85  | 
|                                                                                                 | Forfeited                                    |                |       | 27       |       |  |          | 68.94 |  |  |       | 90.79  | 
|                                                                                                 |                                              |                |       |          |       |  |          |       | 
|Balance at December 31, 2006 options for ordinary shares                                         |                                              |                | 3,074 |          |       |  | 61.18    |       |  |  | 80.57 |       
|                                                                                                 |                                              |                |       |          |       |  |          |       | 

|                                                           |           |  |     |     |  |  |       |       |  |  |       |       | 
|---------------------------------------------------------- | --------- |  | --- | --- |  |  | ----- | ----- |  |  | ----- | ----- | 
|Reconciliation of options for preference shares            |           |  |     |     |  | 
|                                                           |           |  |     |     |  | 
|Balance of options not converted as of February 10, 2006   |           |  | 235 |     |  |  | 49.18 |       |  |  | 64.77 |      
|                                                           |           |  |     |     |  |  |       |       | 
|                                                           | Exercised |  |     | 104 |  |  |       | 49.82 |  |  |       | 65.61 | 
|                                                           | Forfeited |  |     | 8   |  |  |       | 50.61 |  |  |       | 66.66 | 
|                                                           |           |  |     |     |  |  |       |       | 
|Balance at December 31, 2006 options for preference shares |           |  | 123 |     |  |  | 48.56 |       |  |  | 63.96 |      
|                                                           |           |  |     |     |  |  |       |       | 



|                                                 |  |                |     |  |          |  |      |          |  |      |           |  |   |           |       |      |           |  |        |  |  |  |        | 
|------------------------------------------------ |  | -------------- | --- |  | -------- |  | ---- | -------- |  | ---- | --------- |  | - | --------- | ----- | ---- | --------- |  | ------ |  |  |  | ------ | 
|Fully Vested Outstanding and Exercisable Options | 
|                                                 | 
|                                                 |  | Weighted       |     |  |         
|                                                 |  | Average        |     |  |         
|                                                 |  | Remaining      |     |  | Weighted |  |      | Weighted |  |      |          
|                                                 |  | Contractual    |     |  | Average  |  |      | Average  |  |      | Aggregate |  |   | Aggregate |      
|                                                 |  | Number of      |     |  | Life in  |  |      | Exercise |  |      | Exercise  |  |   | Intrinsic |       |      | Intrinsic | 
|                                                 |  | Options        |     |  | Years    |  |      | Price    |  |      | Price     |  |   | Value     |       |      | Value     | 
|                                                 |  |                |     |  |          |  |      |          |  |      |           |  |   |           |       |      |           | 
|                                                 |  | (in thousands) |     |  |          |  |     |          |  | US-$ |           |  |  |           |       | US-$ |          
|Options for preference shares                    |  |                | 71  |  |          |  | 3.63 |          |  |      | 43.37     |  |   |           | 57.12 |      |           |  | 3,734  |  |  |  | 4,918  | 
|Options for ordinary shares                      |  |                | 959 |  |          |  | 4.86 |          |  |      | 59.10     |  |   |           | 77.84 |      |           |  | 40,167 |  |  |  | 52,900 | 



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




Fair Value Information




|                              |  |      |         |  |  |             
|----------------------------- |  | ---- | ------- |  |  | ------------
|Weighted-average assumptions: |  | 2006 |         |  | 
|                              |  |      |         |  | 
|Expected dividend yield       |  |      | 1.64%   |  |  |             
|Risk-free interest rate       |  |      | 3.78%   |  |  |             
|Expected volatility           |  |      | 30.03%  |  |  |             
|Expected life of options      |  |      | 7 years |  |  |             
|Exercise price                |  |      | 91.63  |  |  | (US-$120,68)



|                              |  |      |           |  |      |  |           | 
|----------------------------- |  | ---- | --------- |  | ---- |  | --------- | 
|Weighted-average assumptions: |  | 2005 |           |  | 2004 | 
|                              |  |      |           |  |      | 
|Expected dividend yield       |  |      | 2.88%     |  |      |  | 2.87%     | 
|Risk-free interest rate       |  |      | 2.76%     |  |      |  | 3.50%     | 
|Expected volatility           |  |      | 40.00%    |  |      |  | 40.00%    | 
|Expected life of options      |  |      | 5.3 years |  |      |  | 5.3 years | 



|    |             
|--- | ------------
|16. | Income Taxes



|              |  |      |         |  |      |   |         |      |  |   |         | 
|------------- |  | ---- | ------- |  | ---- | - | ------- | ---- |  | - | ------- | 
|              |  | 2006 |         |  | 2005 |   |         | 2004 | 
|              |  |      |         |  |      |   |         |      | 
|Germany       |  | $    | 167,258 |  |      | $ | 109,407 |      |  | $ | 86,702  | 
|United States |  |      | 645,360 |  |      |   | 512,697 |      |  |   | 447,197 | 
|Other         |  |      | 154,263 |  |      |   | 143,622 |      |  |   | 134,700 | 
|              |  |      |         |  |      |   |         |      | 
|              |  | $    | 966,881 |  |      | $ | 765,726 |      |  | $ | 668,599 | 
|              |  |      |         |  |      |   |         |      | 

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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|          |               |      |         |         |      |   |         |         |   |   |         |         | 
|--------- | ------------- | ---- | ------- | ------- | ---- | - | ------- | ------- | - | - | ------- | ------- | 
|          |               | 2006 |         |         | 2005 |   |         | 2004    |  
|          |               |      |         |         |      |   |         |         |  
|Current:  |               |      |         |         |      |   |         |         |   |   |         |        
|          | Germany       |      | $       | 107,609 |      |   | $       | 40,386  |   |   | $       | 55,034  | 
|          | United States |      |         | 150,550 |      |   |         | 206,551 |   |   |         | 129,445 | 
|          | Other         |      |         | 57,462  |      |   |         | 48,133  |   |   |         | 40,316  | 
|          |               |      |         |         |      |   |         |         |  
|          |               |      | 315,621 |         |      |   | 295,070 |         |   |   | 224,796 |        
|          |               |      |         |         |      |   |         |         |  
|Deferred: |               |      |         |         |      |   |         |         |   |   |         |        
|          | Germany       |      |         | (15,219 | )    |   |         | (12,990 | ) |   |         | 5,147   | 
|          | United States |      |         | 118,800 |      |   |         | 27,391  |   |   |         | 34,958  | 
|          | Other         |      |         | (5,713  | )    |   |         | (723    | ) |   |         | 513     | 
|          |               |      |         |         |      |   |         |         |  
|          |               |      | 97,868  |         |      |   | 13,678  |         |   |   | 40,619  |        
|          |               |      |         |         |      |   |         |         |  
|          |               | $    | 413,489 |         |      | $ | 308,748 |         |   | $ | 265,415 |        
|          |               |      |         |         |      |   |         |         |  







|                                      |  |      |         |   |      |   |         |      |  |   |         |  
|------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                      |  | 2006 |         |   | 2005 |   |         | 2004 | 
|                                      |  |      |         |   |      |   |         |      | 
|Expected corporate income tax expense |  | $    | 371,959 |   |      | $ | 294,345 |      |  | $ | 255,271 |  
|Tax free income                       |  |      | (33,912 | ) |      |   | (18,442 | )    |  |   | (15,570 | )
|Foreign tax rate differential         |  |      | (3,013  | ) |      |   | (8,431  | )    |  |   | 15,734  |  
|Non-deductible expenses               |  |      | 17,055  |   |      |   | 27,757  |      |  |   | 9,426   |  
|Taxes for prior years                 |  |      | 41,332  |   |      |   | 20,509  |      |  |   | 10,267  |  
|Tax on divestitures                   |  |      | 29,128  |   |      |   | 0       |      |  |   | 0       |  
|Other                                 |  |      | (9,060  | ) |      |   | (6,990  | )    |  |   | (9,713  | )
|                                      |  |      |         |   |      |   |         |      | 
|Actual income tax expense             |  | $    | 413,489 |   |      | $ | 308,748 |      |  | $ | 265,415 |  
|                                      |  |      |         |   |      |   |         |      | 
|Effective tax rate                    |  |      | 42.8    | % |      |   | 40.3    | %    |  |   | 39.7    | %
|                                      |  |      |         |   |      |   |         |      | 

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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                                                                                                                                          |  |      |         |   |      |   |         |  
|----------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|                                                                                                                                          |  | 2006 |         |   | 2005 |  
|                                                                                                                                          |  |      |         |   |      |  
|Deferred tax assets:                                                                                                                      |  |      |         |   |      |   |         |  
|Accounts receivable, primarily due to allowance for doubtful
    accounts                                                                 |  | $    | 42,753  |   |      | $ | 26,018  |  
|Inventory, primarily due to additional costs capitalized for tax
    purposes, and inventory reserve accounts                             |  |      | 32,512  |   |      |   | 29,628  |  
|Plant, equipment, intangible assets and other non current
    assets, principally due to differences in depreciation and
    amortization |  |      | 45,949  |   |      |   | 37,905  |  
|Accrued expenses and other liabilities for financial accounting
    purposes, not currently tax deductible                                |  |      | 253,730 |   |      |   | 159,339 |  
|Net operating loss carryforwards                                                                                                          |  |      | 37,965  |   |      |   | 44,249  |  
|Derivatives                                                                                                                               |  |      | 8,313   |   |      |   | 3,735   |  
|Other                                                                                                                                     |  |      | 10,978  |   |      |   | 5,266   |  
|                                                                                                                                          |  |      |         |   |      |  
|Total deferred tax assets                                                                                                                 |  | $    | 432,200 |   |      | $ | 306,140 |  
|Less: valuation allowance                                                                                                                 |  |      | (41,231 | ) |      |   | (46,146 | )
|                                                                                                                                          |  |      |         |   |      |  
|Net deferred tax assets                                                                                                                   |  | $    | 390,969 |   |      | $ | 259,994 |  
|                                                                                                                                          |  |      |         |   |      |  
|Deferred tax liabilities:                                                                                                                 |  |      |         |   |      |   |         |  
|Accounts receivable, primarily due to allowance for doubtful
    accounts                                                                 |  | $    | 10,398  |   |      | $ | 9,266   |  
|Inventory, primarily due to inventory reserve accounts for tax
    purposes                                                               |  |      | 6,994   |   |      |   | 6,040   |  
|Accrued expenses and other liabilities deductible for tax prior
    to financial accounting recognition                                   |  |      | 30,714  |   |      |   | 15,945  |  
|Plant, equipment and intangible assets, principally due to
    differences in depreciation and amortization                               |  |      | 302,187 |   |      |   | 256,663 |  
|Derivatives                                                                                                                               |  |      | 33,831  |   |      |   | 21,582  |  
|Other                                                                                                                                     |  |      | 45,491  |   |      |   | 49,893  |  
|                                                                                                                                          |  |      |         |   |      |  
|Total deferred tax liabilities                                                                                                            |  |      | 429,615 |   |      |   | 359,389 |  
|                                                                                                                                          |  |      |         |   |      |  
|Net deferred tax liabilities                                                                                                              |  | $    | 38,646  |   |      | $ | 99,395  |  
|                                                                                                                                          |  |      |         |   |      |  





|                        |  |   |         | 
|----------------------- |  | - | ------- | 
|2007                    |  | $ | 12,551  | 
|2008                    |  |   | 5,524   | 
|2009                    |  |   | 5,755   | 
|2010                    |  |   | 9,724   | 
|2011                    |  |   | 11,113  | 
|2012                    |  |   | 6,537   | 
|2013                    |  |   | 2,123   | 
|2014 and thereafter     |  |   | 1,305   | 
|Without expiration date |  |   | 61,822  | 
|                        |  |   |        
|Total                   |  | $ | 116,454 | 
|                        |  |   |        

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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)










|    |                 
|--- | ----------------
|17. | Operating Leases





|           |  |   |           | 
|---------- |  | - | --------- | 
|2007       |  | $ | 308,084   | 
|2008       |  |   | 272,995   | 
|2009       |  |   | 237,973   | 
|2010       |  |   | 202,458   | 
|2011       |  |   | 168,712   | 
|Thereafter |  |   | 507,516   | 
|           |  |   |          
|           |  | $ | 1,697,738 | 
|           |  |   |          



|    |                  
|--- | -----------------
|18. | Legal Proceedings

Commercial Litigation




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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)








Fresenius USA,
Inc., et al., v. Baxter International Inc., et al.




F-45



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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




Other Litigation and Potential Exposures


Indiana State
District Council of Laborers and Hod Carriers Pension Fund, on
behalf of itself and all others similarly situated and
derivatively on behalf of RCG, Plaintiff, vs. RCG, Gary
Brukardt, William P. Johnston, Harry R. Jacobson,, Joseph C.
Hutts, William V. Lapham, Thomas A. Lowery, Stephen D. McMurray,
Peter J. Grua, C. Thomas Smith, Ronald Hinds, Raymond Hakim and
R. Dirk Allison, Defendants








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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)












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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


Accrued Special Charge for Legal Matters






|    |                      
|--- | ---------------------
|19. | Financial Instruments

Market Risk






Foreign Exchange Risk Management










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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)














Interest Rate Risk Management




Cash Flow Hedges of Variable Rate Debt




Fair Value Hedges of Fixed Rate Debt




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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)






Fair Value of Financial Instruments




|                |                                      |          |   |           |            |  |          |           |   |  |            |           |   |  |   |           |  
|--------------- | ------------------------------------ | -------- | - | --------- | ---------- |  | -------- | --------- | - |  | ---------- | --------- | - |  | - | --------- | -
|                |                                      | 2006     |   |           | 2005       | 
|                |                                      |          |   |           |            | 
|                |                                      | Carrying |   |           |            |  | Carrying |           |   | 
|                |                                      | Amount   |   |           | Fair Value |  |          | Amount    |   |  | Fair Value |          
|                |                                      |          |   |           |            |  |          |           |   |  |            |          
|Non-derivatives |                                      |          |   |           |            |  |          |           |   |  |            |           |   |  |   |          
|Assets          |                                      |          |   |           |            |  |          |           |   |  |            |           |   |  |   |          
|                | Cash and cash equivalents            |          | $ | 159,010   |            |  | $        | 159,010   |   |  | $          | 85,077    |   |  | $ | 85,077    |  
|                | Receivables                          |          |   | 1,848,695 |            |  |          | 1,848,695 |   |  |            | 1,469,933 |   |  |   | 1,469,933 |  
|Liabilities     |                                      |          |   |           |            |  |          |           |   |  |            |           |   |  |   |          
|                | Accounts payable                     |          |   | 552,807   |            |  |          | 552,807   |   |  |            | 309,255   |   |  |   | 309,255   |  
|                | Long term debt, excluding Euro-Notes |          |   | 3,726,076 |            |  |          | 3,726,076 |   |  |            | 597,429   |   |  |   | 597,429   |  
|                | Trust Preferred Securities           |          |   | 1,253,828 |            |  |          | 1,331,802 |   |  |            | 1,187,864 |   |  |   | 1,285,319 |  
|                | Euro-Notes                           |          |   | 263,400   |            |  |          | 266,480   |   |  |            | 235,940   |   |  |   | 236,326   |  
|Derivatives     |                                      |          |   |           |            |  |          |           |   |  |            |           |   |  |   |          
|                | Foreign exchange contracts           |          |   | 2,613     |            |  |          | 2,613     |   |  |            | (2,939    | ) |  |   | (2,939    | )
|                | Dollar interest rate hedges          |          |   | 45,217    |            |  |          | 45,217    |   |  |            | 21,830    |   |  |   | 21,830    |  
|                | Yen interest rate hedges             |          |   | (75       | )          |  |          | (75       | ) |  |            | (201      | ) |  |   | (201      | )



Estimation of Fair Values








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FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)








|    |                                  
|--- | ---------------------------------
|20. | Other Comprehensive Income (Loss)



|                                                                         |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |         |         |   |   |        |        |  |   |         |         |  
|------------------------------------------------------------------------ | ----------------------------------------------------------- | ---------------------------- | ------- | ------ | ---------------------------- | - | ------- | ---------------------------- | - | - | ------- | ------ |  | ------ | -------- | ------ | --- | --- | ------- | ------- | - | - | -------- | ------ | - | --- | ------- | ------- | - | - | ------ | ------ |  | - | ------- | ------- | -
|                                                                         |                                                             | Year Ended December 31, 2006 |         |        | Year Ended December 31, 2005 |   |         | Year Ended December 31, 2004 |  
|                                                                         |                                                             |                              |         |        |                              |   |         |                              |  
|                                                                         |                                                             |                              |         | Tax    |                              |   |         |                              |   |   | Tax     |        |  |        |          |        |     | Tax |         |         |  
|                                                                         |                                                             | Pretax                       |         |        | Effect                       |   |         | Net                          |   |   | Pretax  |        |  | Effect |          |        | Net |     |         | Pretax  |   |   | Effect   |        |   | Net |        
|                                                                         |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |        
|Other comprehensive (loss) income relating to cash flow hedges:          |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |         |         |   |   |        |        |  |   |         |        
|                                                                         | Changes in fair value of cash flow hedges during the period |                              | $       | 25,513 |                              |   | $       | (9,300                       | ) |   | $       | 16,213 |  |        | $        | 72,440 |     |     | $       | (28,653 | ) |   | $        | 43,787 |   |     | $       | (36,192 | ) |   | $      | 13,638 |  |   | $       | (22,554 | )
|                                                                         | Reclassification adjustments                                |                              |         | 3,280  |                              |   |         | (1,270                       | ) |   |         | 2,010  |  |        |          | (1,243 | )   |     |         | 584     |   |   |          | (659   | ) |     |         | (9,906  | ) |   |        | 3,449  |  |   |         | (6,457  | )
|                                                                         |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |        
|Total other comprehensive (loss) income relating to cash
    flow hedges |                                                             |                              | 28,793  |        |                              |   | (10,570 | )                            |   |   | 18,223  |        |  |        | 71,197   |        |     |     | (28,069 | )       |   |   | 43,128   |        |   |     | (46,098 | )       |   |   | 17,087 |        |  |   | (29,011 | )      
|Foreign-currency translation adjustment                                  |                                                             |                              | 114,494 |        |                              |   |        |                              |   |   | 114,494 |        |  |        | (104,723 | )      |     |     |        |         |   |   | (104,723 | )      |   |     | 144,784 |         |   |   |       |        |  |   | 144,784 |        
|Adjustments related to pension obligations                               |                                                             |                              | 8,074   |        |                              |   | (3,428  | )                            |   |   | 4,646   |        |  |        | (19,996  | )      |     |     | 7,747   |         |   |   | (12,249  | )      |   |     | (16,507 | )       |   |   | 6,605  |        |  |   | (9,902  | )      
|                                                                         |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |        
|Other comprehensive income (loss)                                        |                                                             | $                            | 151,361 |        |                              | $ | (13,998 | )                            |   | $ | 137,363 |        |  | $      | (53,522  | )      |     | $   | (20,322 | )       |   | $ | (73,844  | )      |   | $   | 82,179  |         |   | $ | 23,692 |        |  | $ | 105,871 |        
|                                                                         |                                                             |                              |         |        |                              |   |         |                              |   |   |         |        |  |        |          |        |     |     |         |         |   |   |          |        |   |     |        



|    |                             
|--- | ----------------------------
|21. | Business Segment Information





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FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |   |         |   |  |   |            |  
|---- | -------------------------------------------- | ------- | - | ---------- | ------------- |  | ------- | --------- | - |  | --------- | ---------- | - | ----- | - | ------- | - |  | - | ---------- | -
|     |                                              | North   |   |            |               |  | Segment |           |   |  |           |           
|     |                                              | America |   |            | International |  |         | Total     |   |  | Corporate |            |   | Total |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|2006 |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |   |         |   |  |   |           
|     | Net revenue external customers               |         | $ | 6,025,314  |               |  | $       | 2,473,724 |   |  | $         | 8,499,038  |   |       | $ |        |   |  | $ | 8,499,038  |  
|     | Inter-segment revenue                        |         |   | 1,281      |               |  |         | 60,043    |   |  |           | 61,324     |   |       |   | (61,324 | ) |  |   |           |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Total net revenue                            |         |   | 6,026,595  |               |  |         | 2,533,767 |   |  |           | 8,560,362  |   |       |   | (61,324 | ) |  |   | 8,499,038  |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Depreciation and amortization                |         |   | (186,826   | )             |  |         | (119,938  | ) |  |           | (306,764   | ) |       |   | (1,934  | ) |  |   | (308,698   | )
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Operating Income                             |         |   | 964,609    |               |  |         | 440,552   |   |  |           | 1,405,161  |   |       |   | (87,034 | ) |  |   | 1,318,127  |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Segment
    assets(1)                        |         |   | 10,196,844 |               |  |         | 2,744,833 |   |  |           | 12,941,677 |   |       |   | 103,004 |   |  |   | 13,044,681 |  
|     | Capital expenditures and
    acquisitions(2) |         |   | 4,599,276  |               |  |         | 175,062   |   |  |           | 4,774,338  |   |       |   | 137     |   |  |   | 4,774,475  |  
|2005 |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |   |         |   |  |   |           
|     | Net revenue external customers               |         | $ | 4,577,379  |               |  | $       | 2,194,440 |   |  | $         | 6,771,819  |   |       | $ |        |   |  | $ | 6,771,819  |  
|     | Inter-segment revenue                        |         |   | 1,327      |               |  |         | 54,449    |   |  |           | 55,776     |   |       |   | (55,776 | ) |  |   |           |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Total net revenue                            |         |   | 4,578,706  |               |  |         | 2,248,889 |   |  |           | 6,827,595  |   |       |   | (55,776 | ) |  |   | 6,771,819  |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Depreciation and amortization                |         |   | (139,747   | )             |  |         | (109,812  | ) |  |           | (249,559   | ) |       |   | (1,893  | ) |  |   | (251,452   | )
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Operating Income                             |         |   | 643,917    |               |  |         | 362,134   |   |  |           | 1,006,051  |   |       |   | (67,133 | ) |  |   | 938,918    |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Segment assets                               |         |   | 5,634,985  |               |  |         | 2,216,630 |   |  |           | 7,851,615  |   |       |   | 131,485 |   |  |   | 7,983,100  |  
|     | Capital expenditures and
    acquisitions(3) |         |   | 252,822    |               |  |         | 187,030   |   |  |           | 439,852    |   |       |   | 70      |   |  |   | 439,922    |  
|2004 |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |   |         |   |  |   |           
|     | Net revenue external customers               |         | $ | 4,248,216  |               |  | $       | 1,979,786 |   |  | $         | 6,228,002  |   |       | $ |        |   |  | $ | 6,228,002  |  
|     | Inter-segment revenue                        |         |   | 1,602      |               |  |         | 39,004    |   |  |           | 40,606     |   |       |   | (40,606 | ) |  |   |           |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Total net revenue                            |         |   | 4,249,818  |               |  |         | 2,018,790 |   |  |           | 6,268,608  |   |       |   | (40,606 | ) |  |   | 6,228,002  |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Depreciation and amortization                |         |   | (128,532   | )             |  |         | (102,137  | ) |  |           | (230,669   | ) |       |   | (1,917  | ) |  |   | (232,586   | )
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Operating Income                             |         |   | 587,400    |               |  |         | 300,291   |   |  |           | 887,691    |   |       |   | (35,346 | ) |  |   | 852,345    |  
|     |                                              |         |   |            |               |  |         |           |   |  |           |            |   |       |  
|     | Segment assets                               |         |   | 5,539,631  |               |  |         | 2,366,277 |   |  |           | 7,905,908  |   |       |   | 55,633  |   |  |   | 7,961,541  |  
|     | Capital expenditures and
    acquisitions(4) |         |   | 230,150    |               |  |         | 152,820   |   |  |           | 382,970    |   |       |   | 255     |   |  |   | 383,225    |  






|    |                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Segment assets of North America include the goodwill of RCG of
    $3,381,901 as of December 31, 2006.                                                                                                                                 
|   
|(2) | North America and International acquisitions exclude $2,500 and
    $6,208 of non-cash acquisitions for 2006. North America
    acquisitions include $4,148,200 at December 31, 2006 of the
    total $4,157,619 purchase price of RCG.
|   
|(2) | North America and International acquisitions exclude $260 and
    $9,031, respectively, of non-cash acquisitions for 2005.                                                                                                             
|   
|(4) | International acquisitions exclude $15,479 of non-cash
    acquisitions for 2004.                                                                                                                                                      

F-52



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                               |  |         |         |        |        |   |             |       |  |   |           |  |  |   |           | 
|------------------------------ |  | ------- | ------- | ------ | ------ | - | ----------- | ----- |  | - | --------- |  |  | - | --------- | 
|                               |  |         |         | United |        |   | Rest of the |       |  |  
|                               |  | Germany |         |        | States |   |             | World |  |   | Total     | 
|                               |  |         |         |        |        |   |             |       |  |   |           | 
|2006                           |  |         |         |        |        |   |             |       |  |   |           |  |  |   |           | 
|Net revenue external customers |  | $       | 288,047 |        |        | $ | 6,025,314   |       |  | $ | 2,185,677 |  |  | $ | 8,499,038 | 
|Long-lived assets              |  |         | 144,877 |        |        |   | 8,274,104   |       |  |   | 1,080,301 |  |  |   | 9,499,282 | 
|2005                           |  |         |         |        |        |   |             |       |  |   |           |  |  |   |           | 
|Net revenue external customers |  | $       | 288,923 |        |        | $ | 4,577,379   |       |  | $ | 1,905,517 |  |  | $ | 6,771,819 | 
|Long-lived assets              |  |         | 157,362 |        |        |   | 4,372,453   |       |  |   | 906,220   |  |  |   | 5,436,035 | 
|2004                           |  |         |         |        |        |   |             |       |  |   |           |  |  |   |           | 
|Net revenue external customers |  | $       | 288,526 |        |        | $ | 4,248,216   |       |  | $ | 1,691,260 |  |  | $ | 6,228,002 | 
|Long-lived assets              |  |         | 169,981 |        |        |   | 4,277,319   |       |  |   | 956,860   |  |  |   | 5,404,160 | 



|    |                                    
|--- | -----------------------------------
|22. | Supplementary Cash Flow Information



|                                                   |                                                          |      |   |           |      |  |   |         |   |  |   |         | 
|-------------------------------------------------- | -------------------------------------------------------- | ---- | - | --------- | ---- |  | - | ------- | - |  | - | ------- | 
|                                                   |                                                          | 2006 |   |           | 2005 |  |   | 2004    |  
|                                                   |                                                          |      |   |           |      |  |   |         |  
|Supplementary cash flow information:               |                                                          |      |   |           |      |  |   |         |   |  |   |        
|                                                   | Cash paid for interest                                   |      | $ | 378,233   |      |  | $ | 180,853 |   |  | $ | 201,380 | 
|                                                   |                                                          |      |   |           |      |  |   |         |  
|                                                   | Cash paid for income taxes                               |      | $ | 423,514   |      |  | $ | 380,764 |   |  | $ | 198,983 | 
|                                                   |                                                          |      |   |           |      |  |   |         |  
|                                                   | Cash inflow for income taxes from stock option exercises |      | $ | 7,428     |      |  | $ |        |   |  | $ |        | 
|                                                   |                                                          |      |   |           |      |  |   |         |  
|Supplemental disclosures of cash flow information: |                                                          |      |   |           |      |  |   |         |   |  |   |        
|                                                   | Details for acquisitions:                                |      |   |           |      |  |   |         |   |  |   |         | 
|                                                   | Assets acquired                                          |      | $ | 4,784,713 |      |  | $ | 149,189 |   |  | $ | 148,324 | 
|                                                   | Liabilities assumed                                      |      |   | 348,898   |      |  |   | 18,161  |   |  |   | 12,957  | 
|                                                   | Minorities                                               |      |   | 56,300    |      |  |   | (5,017  | ) |  |   |        | 
|                                                   | Notes assumed in connection with acquisition             |      |   | 8,708     |      |  |   | 9,291   |   |  |   | 15,479  | 
|                                                   |                                                          |      |   |           |      |  |   |         |  
|                                                   | Cash paid                                                |      |   | 4,370,807 |      |  |   | 126,754 |   |  |   | 119,888 | 
|                                                   | Less cash acquired                                       |      |   | 63,525    |      |  |   | 1,601   |   |  |   | 15,395  | 
|                                                   |                                                          |      |   |           |      |  |   |         |  
|                                                   | Net cash paid for acquisitions                           |      | $ | 4,307,282 |      |  | $ | 125,153 |   |  | $ | 104,493 | 
|                                                   |                                                          |      |   |           |      |  |   |         |  



|    |                                             
|--- | --------------------------------------------
|23. | Supplemental Condensed Combining Information

FMC-AG (D-GmbH), FMC-AG FMC-AG (D-GmbH


F-53



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)




|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |           |   |   |           |           |  
|------------------------------------------------------- | ----------------------------------- | ------------------------------------ | ------- | ---------------------- | ------ | - | --------- | ------------- |  | - | ------------ | -------- | - | ---------- | --------- | --------- | ----- | - | ---------- | --------- | - | - | --------- | --------- | -
|                                                        |                                     | For the year ended December 31, 2006 |        
|                                                        |                                     |                                      |        
|                                                        |                                     |                                      |         | Guarantor Subsidiaries |        |   |          
|                                                        |                                     | FMC-AG &                             |         |                        |        |   |           | Non-Guarantor |  |   | Combining    |          |   | Combined   |          
|                                                        |                                     | Co. KGaA                             |         |                        | D-GmbH |   |           | FMCH          |  |   | Subsidiaries |          |   | Adjustment |           |           | Total |  
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Net revenue                                             |                                     | $                                    |        |                        |        | $ | 1,750,605 |               |  | $ |             |          |   | $          | 8,242,843 |           |       | $ | (1,494,410 | )         |   | $ | 8,499,038 |          
|Cost of revenue                                         |                                     |                                      |        |                        |        |   | 1,297,157 |               |  |   |             |          |   |            | 5,804,814 |           |       |   | (1,480,489 | )         |   |   | 5,621,482 |          
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|                                                        | Gross profit                        |                                      |         |                       |        |   |           | 453,448       |  |   |              |         |   |            |           | 2,438,029 |       |   |            | (13,921   | ) |   |           | 2,877,556 |  
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Operating (income) expenses:                            |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |           |   |   |           |          
|                                                        | Selling, general and administrative |                                      |         | 98,761                 |        |   |           | 145,700       |  |   |              | 16,829   |   |            |           | 1,345,974 |       |   |            | (58,895   | ) |   |           | 1,548,369 |  
|                                                        | Gain on sale of legacy clinics      |                                      |         |                       |        |   |           |              |  |   |              |         |   |            |           | (40,233   | )     |   |            |          |   |   |           | (40,233   | )
|                                                        | Research and development            |                                      |         |                       |        |   |           | 36,801        |  |   |              |         |   |            |           | 14,492    |       |   |            |          |   |   |           | 51,293    |  
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Operating (loss) income                                 |                                     |                                      | (98,761 | )                      |        |   | 270,947   |               |  |   | (16,829      | )        |   |            | 1,077,563 |           |       |   | 44,974     |           |   |   | 1,318,127 |          
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Other (income) expense:                                 |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |           |   |   |           |          
|                                                        | Interest, net                       |                                      |         | 23,228                 |        |   |           | 13,108        |  |   |              | 186,988  |   |            |           | 126,338   |       |   |            | 1,584     |   |   |           | 351,246   |  
|                                                        | Other, net                          |                                      |         | (728,116               | )      |   |           | 160,094       |  |   |              | (448,408 | ) |            |           |          |       |   |            | 1,016,430 |   |   |           |          |  
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before income taxes and minority interest |                                     |                                      | 606,127 |                        |        |   | 97,745    |               |  |   | 244,591      |          |   |            | 991,458   |           |       |   | (973,040   | )         |   |   | 966,881   |          
|                                                        | Income tax expense (benefit)        |                                      |         | 69,381                 |        |   |           | 101,042       |  |   |              | (81,527  | ) |            |           | 379,268   |       |   |            | (54,675   | ) |   |           | 413,489   |  
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before minority interest                  |                                     |                                      | 536,746 |                        |        |   | (3,297    | )             |  |   | 326,118      |          |   |            | 612,190   |           |       |   | (918,365   | )         |   |   | 553,392   |          
|Minority interest                                       |                                     |                                      |        |                        |        |   |          |               |  |   |             |          |   |            |          |           |       |   | 16,646     |           |   |   | 16,646    |          
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Net income (loss)                                       |                                     | $                                    | 536,746 |                        |        | $ | (3,297    | )             |  | $ | 326,118      |          |   | $          | 612,190   |           |       | $ | (935,011   | )         |   | $ | 536,746   |          
|                                                        |                                     |                                      |         |                        |        |   |           |               |  |   |              |          |   |            |           |           |       |  

F-54



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |         |   |   |           |           | 
|------------------------------------------------------- | ----------------------------------- | ------------------------------------ | ------- | ------------ | ------ | - | --------- | ------------- |  | - | ------------ | -------- | - | ---------- | --------- | --------- | ----- | - | ---------- | ------- | - | - | --------- | --------- | 
|                                                        |                                     | For the Year Ended December 31, 2005 |        
|                                                        |                                     |                                      |        
|                                                        |                                     |                                      |         | Guarantor    |        |   |          
|                                                        |                                     |                                      |         | Subsidiaries |        |   |          
|                                                        |                                     | FMC-AG &                             |         |              |        |   |           | Non-Guarantor |  |   | Combining    |          |   | Combined   |          
|                                                        |                                     | Co. KGaA                             |         |              | D-GmbH |   |           | FMCH          |  |   | Subsidiaries |          |   | Adjustment |           |           | Total |  
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Net revenue                                             |                                     | $                                    |        |              |        | $ | 1,059,401 |               |  | $ |             |          |   | $          | 7,010,734 |           |       | $ | (1,298,316 | )       |   | $ | 6,771,819 |          
|Cost of revenue                                         |                                     |                                      |        |              |        |   | 664,871   |               |  |   |             |          |   |            | 5,058,548 |           |       |   | (1,284,265 | )       |   |   | 4,439,154 |          
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|                                                        | Gross profit                        |                                      |         |             |        |   |           | 394,530       |  |   |              |         |   |            |           | 1,952,186 |       |   |            | (14,051 | ) |   |           | 2,332,665 | 
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Operating (income) expenses:                            |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |         |   |   |           |          
|                                                        | Selling, general and administrative |                                      |         | (14,805      | )      |   |           | 135,899       |  |   |              |         |   |            |           | 1,075,777 |       |   |            | 145,921 |   |   |           | 1,342,792 | 
|                                                        | Research and development            |                                      |         | 3,271        |        |   |           | 32,702        |  |   |              |         |   |            |           | 14,982    |       |   |            |        |   |   |           | 50,955    | 
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Operating income (loss)                                 |                                     |                                      | 11,534  |              |        |   | 225,929   |               |  |   |             |          |   |            | 861,427   |           |       |   | (159,972   | )       |   |   | 938,918   |          
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Other (income) expense:                                 |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |   |            |         |   |   |           |          
|                                                        | Interest, net                       |                                      |         | 35,391       |        |   |           | 11,750        |  |   |              | 51,981   |   |            |           | 112,199   |       |   |            | (38,129 | ) |   |           | 173,192   | 
|                                                        | Other, net                          |                                      |         | (525,497     | )      |   |           | 131,392       |  |   |              | (294,649 | ) |            |           |          |       |   |            | 688,754 |   |   |           |          | 
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before income taxes and minority interest |                                     |                                      | 501,640 |              |        |   | 82,787    |               |  |   | 242,668      |          |   |            | 749,228   |           |       |   | (810,597   | )       |   |   | 765,726   |          
|                                                        | Income tax expense (benefit)        |                                      |         | 46,688       |        |   |           | 79,606        |  |   |              | (20,792  | ) |            |           | 286,629   |       |   |            | (83,383 | ) |   |           | 308,748   | 
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before minority interest                  |                                     |                                      | 454,952 |              |        |   | 3,181     |               |  |   | 263,460      |          |   |            | 462,599   |           |       |   | (727,214   | )       |   |   | 456,978   |          
|Minority interest                                       |                                     |                                      |        |              |        |   |          |               |  |   |             |          |   |            |          |           |       |   | 2,026      |         |   |   | 2,026     |          
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  
|Net income (loss)                                       |                                     | $                                    | 454,952 |              |        | $ | 3,181     |               |  | $ | 263,460      |          |   | $          | 462,599   |           |       | $ | (729,240   | )       |   | $ | 454,952   |          
|                                                        |                                     |                                      |         |              |        |   |           |               |  |   |              |          |   |            |           |           |       |  

|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |   |            |          |   |   |           |           | 
|------------------------------------------------------- | ----------------------------------- | ------------------------------------ | -------- | ---------------------- | ------ | - | ------- | ------------- |  | - | ------------ | -------- | - | ---------- | --------- | --------- | ----- | - | ---------- | -------- | - | - | --------- | --------- | 
|                                                        |                                     | For the Year Ended December 31, 2004 |         
|                                                        |                                     |                                      |         
|                                                        |                                     |                                      |          | Guarantor Subsidiaries |        |   |        
|                                                        |                                     | FMC-AG &                             |          |                        |        |   |         | Non-Guarantor |  |   | Combining    |          |   | Combined   |          
|                                                        |                                     | Co. KGaA                             |          |                        | D-GmbH |   |         | FMCH          |  |   | Subsidiaries |          |   | Adjustment |           |           | Total |  
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Net revenue                                             |                                     | $                                    |         |                        |        | $ | 967,981 |               |  | $ |             |          |   | $          | 7,086,578 |           |       | $ | (1,826,557 | )        |   | $ | 6,228,002 |          
|Cost of revenue                                         |                                     |                                      |         |                        |        |   | 618,147 |               |  |   |             |          |   |            | 5,344,614 |           |       |   | (1,820,644 | )        |   |   | 4,142,117 |          
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|                                                        | Gross profit                        |                                      |          |                       |        |   |         | 349,834       |  |   |              |         |   |            |           | 1,741,964 |       |   |            | (5,913   | ) |   |           | 2,085,885 | 
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Operating (income) expenses:                            |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |   |            |          |   |   |           |          
|                                                        | Selling, general and administrative |                                      |          | 98,025                 |        |   |         | 144,952       |  |   |              |         |   |            |           | 1,068,900 |       |   |            | (129,701 | ) |   |           | 1,182,176 | 
|                                                        | Research and development            |                                      |          | 2,455                  |        |   |         | 33,610        |  |   |              |         |   |            |           | 15,299    |       |   |            |          |   |   |           | 51,364    | 
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Operating (loss) income                                 |                                     |                                      | (100,479 | )                      |        |   | 171,272 |               |  |   |             |          |   |            | 657,764   |           |       |   | 123,788    |          |   |   | 852,345   |          
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Other (income) expense:                                 |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |   |            |          |   |   |           |          
|                                                        | Interest, net                       |                                      |          | 36,777                 |        |   |         | 13,367        |  |   |              | 62,189   |   |            |           | 104,768   |       |   |            | (33,355  | ) |   |           | 183,746   | 
|                                                        | Other, net                          |                                      |          | (592,166               | )      |   |         | 101,430       |  |   |              | (286,567 | ) |            |           |          |       |   |            | 777,303  |   |   |           |          | 
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before income taxes and minority interest |                                     |                                      | 454,909  |                        |        |   | 56,475  |               |  |   | 224,378      |          |   |            | 552,997   |           |       |   | (620,160   | )        |   |   | 668,599   |          
|                                                        | Income tax expense (benefit)        |                                      |          | 52,912                 |        |   |         | 58,815        |  |   |              | (24,876  | ) |            |           | 237,413   |       |   |            | (58,849  | ) |   |           | 265,415   | 
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Income (loss) before minority interest                  |                                     |                                      | 401,998  |                        |        |   | (2,340  | )             |  |   | 249,254      |          |   |            | 315,584   |           |       |   | (561,311   | )        |   |   | 403,184   |          
|Minority interest                                       |                                     |                                      |         |                        |        |   |        |               |  |   |             |          |   |            |          |           |       |   | 1,186      |          |   |   | 1,186     |          
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  
|Net income (loss)                                       |                                     | $                                    | 401,998  |                        |        | $ | (2,340  | )             |  | $ | 249,254      |          |   | $          | 315,584   |           |       | $ | (562,497   | )        |   | $ | 401,998   |          
|                                                        |                                     |                                      |          |                        |        |   |         |               |  |   |              |          |   |            |           |           |       |  

F-55



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            |  |             |             |             |   |           |            |            | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------- | ------------------------- | --------- | ------------ | --------- |  | --------- | ------------- | --------- |  | ------------ | --------- | --------- | ---------- | ---------- | ---------- | ---------- |  | ----------- | ----------- | ----------- | - | --------- | ---------- | ---------- | 
|                                                                                                                                                                                     |                                                                 | At December 31, 2006      |          
|                                                                                                                                                                                     |                                                                 |                           |          
|                                                                                                                                                                                     |                                                                 |                           |           | Guarantor    |           |  |          
|                                                                                                                                                                                     |                                                                 |                           |           | Subsidiaries |           |  |          
|                                                                                                                                                                                     |                                                                 | FMC-AG &                  |           |              |           |  |           | Non-Guarantor |           |  | Combining    |           |           | Combined   |           
|                                                                                                                                                                                     |                                                                 | Co. KGaA                  |           |              | D-GmbH    |  |           | FMCH          |           |  | Subsidiaries |           |           | Adjustment |            |            | Total      | 
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|Current assets:                                                                                                                                                                      |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            |  |             |             |             |   |           |           
|                                                                                                                                                                                     | Cash and cash equivalents                                       |                           | $         | 22           |           |  | $         | 34            |           |  | $            |          |           |            | $          | 158,954    |            |  | $           |            |             |   | $         | 159,010    |           
|                                                                                                                                                                                     | Trade accounts receivable, less allowance for doubtful accounts |                           |           |             |           |  |           | 122,987       |           |  |              |          |           |            |            | 1,725,708  |            |  |             |            |             |   |           | 1,848,69   |           
|                                                                                                                                                                                     | Accounts receivable from related parties                        |                           |           | 1,483,462    |           |  |           | 835,512       |           |  |              | 290,288   |           |            |            | 1,830,293  |            |  |             | (4,296,206  | )           |   |           | 143,349    |           
|                                                                                                                                                                                     | Inventories                                                     |                           |           |             |           |  |           | 130,967       |           |  |              |          |           |            |            | 457,426    |            |  |             | (64,464     | )           |   |           | 523,929    |           
|                                                                                                                                                                                     | Prepaid expenses and other current assets                       |                           |           | 18,455       |           |  |           | 20,633        |           |  |              | 50        |           |            |            | 408,850    |            |  |             | (4,134      | )           |   |           | 443,854    |           
|                                                                                                                                                                                     | Deferred taxes                                                  |                           |           | 1,586        |           |  |           |              |           |  |              |          |           |            |            | 262,476    |            |  |             | 29,017      |             |   |           | 293,079    |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|                                                                                                                                                                                     |                                                                 | Total current assets      |           |              | 1,503,525 |  |           |               | 1,110,133 |  |              |           | 290,338   |            |            |            | 4,843,707  |  |             |             | (4,335,787  | ) |           |            | 3,411,916  | 
|Property, plant and equipment, net                                                                                                                                                   |                                                                 |                           | 174       |              |           |  | 97,244    |               |           |  |             |           |           |            | 1,678,511  |            |            |  | (53,537     | )           |             |   | 1,722,392 |           
|Intangible assets                                                                                                                                                                    |                                                                 |                           | 70        |              |           |  | 13,969    |               |           |  |             |           |           |            | 647,326    |            |            |  |            |             |             |   | 661,365   |           
|Goodwill                                                                                                                                                                             |                                                                 |                           |          |              |           |  | 3,207     |               |           |  |             |           |           |            | 6,888,954  |            |            |  |            |             |             |   | 6,892,161 |           
|Deferred taxes                                                                                                                                                                       |                                                                 |                           |          |              |           |  | 11,825    |               |           |  |             |           |           |            | 40,429     |            |            |  | 10,468      |             |             |   | 62,722    |           
|Other assets                                                                                                                                                                         |                                                                 |                           | 5,105,547 |              |           |  | 869,630   |               |           |  | 5,998,241    |           |           |            | (1,532,867 | )          |            |  | (10,146,426 | )           |             |   | 294,125   |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|                                                                                                                                                                                     |                                                                 | Total assets              |           | $            | 6,609,316 |  |           | $             | 2,106,008 |  |              | $         | 6,288,579 |            |            | $          | 12,566,060 |  |             | $           | (14,525,282 | ) |           | $          | 13,044,681 | 
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|Current liabilities:                                                                                                                                                                 |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            |  |             |             |             |   |           |           
|                                                                                                                                                                                     | Accounts payable                                                |                           | $         | 306          |           |  | $         | 20,399        |           |  | $            |          |           |            | $          | 295,483    |            |  | $           |            |             |   | $         | 316,188    |           
|                                                                                                                                                                                     | Accounts payable to related parties                             |                           |           | 351,450      |           |  |           | 642,878       |           |  |              | 926,178   |           |            |            | 3,496,135  |            |  |             | (5,180,022  | )           |   |           | 236,619    |           
|                                                                                                                                                                                     | Accrued expenses and other current liabilities                  |                           |           | 17,617       |           |  |           | 91,634        |           |  |              | 8,450     |           |            |            | 1,064,412  |            |  |             | 12,826      |             |   |           | 1,194,939  |           
|                                                                                                                                                                                     | Short-term borrowings                                           |                           |           |             |           |  |           |              |           |  |              |          |           |            |            | 331,231    |            |  |             |            |             |   |           | 331,231    |           
|                                                                                                                                                                                     | Short-term borrowings from related parties                      |                           |           | 954,896      |           |  |           | 9,155         |           |  |              |          |           |            |            | (950,321   | )          |  |             | (9,155      | )           |   |           | 4,575      |           
|                                                                                                                                                                                     | Current portion of long-term debt and capital lease obligations |                           |           | 744          |           |  |           | 263           |           |  |              | 137,500   |           |            |            | 21,628     |            |  |             |            |             |   |           | 160,135    |           
|                                                                                                                                                                                     | Income tax payable                                              |                           |           | 40,551       |           |  |           |              |           |  |              |          |           |            |            | 63,929     |            |  |             | 11,579      |             |   |           | 116,059    |           
|                                                                                                                                                                                     | Deferred taxes                                                  |                           |           |             |           |  |           | 6,174         |           |  |              |          |           |            |            | 15,982     |            |  |             | (6,197      | )           |   |           | 15,959     |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|                                                                                                                                                                                     |                                                                 | Total current liabilities |           |              | 1,365,564 |  |           |               | 770,503   |  |              |           | 1,072,128 |            |            |            | 4,338,479  |  |             |             | (5,170,969  | ) |           |            | 2,375,705  | 
|Long term debt and capital lease obligations, less current
    portion                                                                                                               |                                                                 |                           | 329,918   |              |           |  | 395       |               |           |  | 2,367,731    |           |           |            | 4,853,043  |            |            |  | (3,721,746  | )           |             |   | 3,829,341 |           
|Long term borrowings from related parties                                                                                                                                            |                                                                 |                           | 4,153     |              |           |  | 204,453   |               |           |  |             |           |           |            |           |            |            |  | (208,606    | )           |             |   |          |           
|Other liabilities                                                                                                                                                                    |                                                                 |                           | 18,872    |              |           |  | 9,462     |               |           |  |             |           |           |            | 112,350    |            |            |  | 9,000       |             |             |   | 149,684   |           
|Pension liabilities                                                                                                                                                                  |                                                                 |                           | 2,580     |              |           |  | 107,357   |               |           |  |             |           |           |            | 2,379      |            |            |  |            |             |             |   | 112,316   |           
|Deferred taxes                                                                                                                                                                       |                                                                 |                           | 18,067    |              |           |  |           |               |           |  |             |           |           |            | 309,140    |            |            |  | 51,280      |             |             |   | 378,487   |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|Company obligated mandatorily redeemable preferred securities of
    subsidiary Fresenius Medical Care Capital Trusts holding solely
    Company-guaranteed debentures of subsidiary |                                                                 |                           |          |              |           |  |          |               |           |  |             |           |           |            | 1,253,828  |            |            |  |            |             |             |   | 1,253,828 |           
|Minority interest                                                                                                                                                                    |                                                                 |                           |          |              |           |  |          |               |           |  | 7,412        |           |           |            | 67,746     |            |            |  |            |             |             |   | 75,158    |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|                                                                                                                                                                                     |                                                                 | Total liabilities         |           |              | 1,739,154 |  |           |               | 1,092,170 |  |              |           | 3,447,271 |            |            |            | 10,936,965 |  |             |             | (9,041,041  | ) |           |            | 8,174,519  | 
|Shareholders equity:                                                                                                                                                                |                                                                 |                           | 4,870,162 |              |           |  | 1,013,838 |               |           |  | 2,841,308    |           |           |            | 1,629,095  |            |            |  | (5,484,241  | )           |             |   | 4,870,162 |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 
|                                                                                                                                                                                     | Total liabilities and shareholders equity                      |                           | $         | 6,609,316    |           |  | $         | 2,106,008     |           |  | $            | 6,288,579 |           |            | $          | 12,566,060 |            |  | $           | (14,525,282 | )           |   | $         | 13,044,681 |           
|                                                                                                                                                                                     |                                                                 |                           |           |              |           |  |           |               |           |  |              |           |           |            |            |            |            | 

F-56



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           |  |            |            |             |   |           |           |           | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------- | ------------------------------------------ | --------- | ------------ | --------- |  | ------- | ------------- | --------- |  | ------------ | ------- | --------- | ---------- | --------- | --------- | --------- |  | ---------- | ---------- | ----------- | - | --------- | --------- | --------- | 
|                                                                                                                                                                                     |                                                                 | At December 31, 2005                       |          
|                                                                                                                                                                                     |                                                                 |                                            |          
|                                                                                                                                                                                     |                                                                 |                                            |           | Guarantor    |           |  |        
|                                                                                                                                                                                     |                                                                 |                                            |           | Subsidiaries |           |  |        
|                                                                                                                                                                                     |                                                                 | FMC-AG &                                   |           |              |           |  |         | Non-Guarantor |           |  | Combining    |         |           | Combined   |          
|                                                                                                                                                                                     |                                                                 | Co. KGaA                                   |           |              | D-GmbH    |  |         | FMCH          |           |  | Subsidiaries |         |           | Adjustment |           |           | Total     | 
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|Current assets:                                                                                                                                                                      |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           |  |            |            |             |   |           |          
|                                                                                                                                                                                     | Cash and cash equivalents                                       |                                            | $         | 1            |           |  | $       | 26            |           |  | $            |        |           |            | $         | 82,558    |           |  | $          | 2,492      |             |   | $         | 85,077    |          
|                                                                                                                                                                                     | Trade accounts receivable, less allowance for doubtful accounts |                                            |           |             |           |  |         | 108,426       |           |  |              |        |           |            |           | 1,361,507 |           |  |            |           |             |   |           | 1,469,933 |          
|                                                                                                                                                                                     | Accounts receivable from related parties                        |                                            |           | 852,926      |           |  |         | 338,097       |           |  |              | 216,337 |           |            |           | 1,248,942 |           |  |            | (2,622,418 | )           |   |           | 33,884    |          
|                                                                                                                                                                                     | Inventories                                                     |                                            |           |             |           |  |         | 113,359       |           |  |              |        |           |            |           | 371,638   |           |  |            | (54,104    | )           |   |           | 430,893   |          
|                                                                                                                                                                                     | Prepaid expenses and other current assets                       |                                            |           | 17,399       |           |  |         | 12,329        |           |  |              | 13      |           |            |           | 231,734   |           |  |            | 115        |             |   |           | 261,590   |          
|                                                                                                                                                                                     | Deferred taxes                                                  |                                            |           |             |           |  |         |              |           |  |              |        |           |            |           | 163,975   |           |  |            | 15,586     |             |   |           | 179,561   |          
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|                                                                                                                                                                                     |                                                                 | Total current assets                       |           |              | 870,326   |  |         |               | 572,237   |  |              |         | 216,350   |            |           |           | 3,460,354 |  |            |            | (2,658,329  | ) |           |           | 2,460,938 | 
|Property, plant and equipment, net                                                                                                                                                   |                                                                 |                                            | 157       |              |           |  | 86,386  |               |           |  |             |         |           |            | 1,174,252 |           |           |  | (45,037    | )          |             |   | 1,215,758 |          
|Intangible assets                                                                                                                                                                    |                                                                 |                                            | 970       |              |           |  | 12,220  |               |           |  |             |         |           |            | 572,499   |           |           |  |           |            |             |   | 585,689   |          
|Goodwill                                                                                                                                                                             |                                                                 |                                            |          |              |           |  | 3,227   |               |           |  |             |         |           |            | 3,453,650 |           |           |  |           |            |             |   | 3,456,877 |          
|Deferred taxes                                                                                                                                                                       |                                                                 |                                            |          |              |           |  | 4,562   |               |           |  |             |         |           |            | 27,994    |           |           |  | 3,093      |            |             |   | 35,649    |          
|Other assets                                                                                                                                                                         |                                                                 |                                            | 4,552,128 |              |           |  | 811,728 |               |           |  | 3,812,542    |         |           |            | (829,742  | )         |           |  | (8,118,467 | )          |             |   | 228,189   |          
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|                                                                                                                                                                                     |                                                                 | Total assets                               |           | $            | 5,423,581 |  |         | $             | 1,490,360 |  |              | $       | 4,028,892 |            |           | $         | 7,859,007 |  |            | $          | (10,818,740 | ) |           | $         | 7,983,100 | 
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|Current liabilities:                                                                                                                                                                 |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           |  |            |            |             |   |           |          
|                                                                                                                                                                                     | Accounts payable                                                |                                            | $         | 19           |           |  | $       | 13,401        |           |  | $            |        |           |            | $         | 187,897   |           |  | $          |           |             |   | $         | 201,317   |          
|                                                                                                                                                                                     | Accounts payable to related parties                             |                                            |           | 1,059,718    |           |  |         | 160,884       |           |  |              | 882,439 |           |            |           | 1,397,213 |           |  |            | (3,392,316 | )           |   |           | 107,938   |          
|                                                                                                                                                                                     | Accrued expenses and other current liabilities                  |                                            |           | 22,205       |           |  |         | 92,545        |           |  |              | 775     |           |            |           | 731,208   |           |  |            | (7,965     | )           |   |           | 838,768   |          
|                                                                                                                                                                                     | Short-term borrowings                                           |                                            |           | 33           |           |  |         |              |           |  |              |        |           |            |           | 151,080   |           |  |            |           |             |   |           | 151,113   |          
|                                                                                                                                                                                     | Short-term borrowings from related parties                      |                                            |           | 18,757       |           |  |         | 1,752         |           |  |              |        |           |            |           |          |           |  |            | (1,752     | )           |   |           | 18,757    |          
|                                                                                                                                                                                     | Current portion of long-term debt and capital lease obligations |                                            |           | 968          |           |  |         | 826           |           |  |              | 100,000 |           |            |           | 24,475    |           |  |            |           |             |   |           | 126,269   |          
|                                                                                                                                                                                     | Income tax payable                                              |                                            |           | 15,106       |           |  |         |              |           |  |              |        |           |            |           | 81,593    |           |  |            | 23,439     |             |   |           | 120,138   |          
|                                                                                                                                                                                     | Deferred taxes                                                  |                                            |           | 2,489        |           |  |         | 3,735         |           |  |              |        |           |            |           | 34,266    |           |  |            | (26,550    | )           |   |           | 13,940    |          
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|                                                                                                                                                                                     |                                                                 | Total current liabilities                  |           |              | 1,119,295 |  |         |               | 273,143   |  |              |         | 983,214   |            |           |           | 2,607,732 |  |            |            | (3,405,144  | ) |           |           | 1,578,240 | 
|Long term debt and capital lease obligations, less current
    portion                                                                                                               |                                                                 |                                            | 294,131   |              |           |  | 590     |               |           |  | 561,229      |         |           |            | 651,297   |           |           |  | (800,147   | )          |             |   | 707,100   |          
|Long term borrowings from related parties                                                                                                                                            |                                                                 |                                            | 3,720     |              |           |  | 180,951 |               |           |  |             |         |           |            |          |           |           |  | (184,671   | )          |             |   |          |          
|Other liabilities                                                                                                                                                                    |                                                                 |                                            | 419       |              |           |  | 5,013   |               |           |  |             |         |           |            | 89,112    |           |           |  | 17,874     |            |             |   | 112,418   |          
|Pension liabilities                                                                                                                                                                  |                                                                 |                                            | 2,578     |              |           |  | 75,880  |               |           |  |             |         |           |            | 42,680    |           |           |  | (12,436    | )          |             |   | 108,702   |          
|Deferred taxes                                                                                                                                                                       |                                                                 |                                            | 29,732    |              |           |  |         |               |           |  |             |         |           |            | 235,538   |           |           |  | 35,395     |            |             |   | 300,665   |          
|Company obligated mandatorily redeemable preferred securities of
    subsidiary Fresenius Medical Care Capital Trusts holding solely
    Company-guaranteed debentures of subsidiary |                                                                 |                                            |          |              |           |  |        |               |           |  |             |         |           |            | 1,187,864 |           |           |  |           |            |             |   | 1,187,864 |          
|Minority interest                                                                                                                                                                    |                                                                 |                                            |          |              |           |  |        |               |           |  | 7,412        |         |           |            |          |           |           |  | 6,993      |            |             |   | 14,405    |          
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|                                                                                                                                                                                     |                                                                 | Total liabilities                          |           |              | 1,449,875 |  |         |               | 535,577   |  |              |         | 1,551,855 |            |           |           | 4,814,223 |  |            |            | (4,342,136  | ) |           |           | 4,009,394 | 
|Shareholders equity:                                                                                                                                                                |                                                                 |                                            | 3,973,706 |              |           |  | 954,783 |               |           |  | 2,477,037    |         |           |            | 3,044,784 |           |           |  | (6,476,604 | )          |             |   | 3,973,706 |          
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 
|                                                                                                                                                                                     |                                                                 | Total liabilities and shareholders equity |           | $            | 5,423,581 |  |         | $             | 1,490,360 |  |              | $       | 4,028,892 |            |           | $         | 7,859,007 |  |            | $          | (10,818,740 | ) |           | $         | 7,983,100 | 
|                                                                                                                                                                                     |                                                                 |                                            |           |              |           |  |         |               |           |  |              |         |           |            |           |           |           | 

F-57



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |            |         |         |            |  
|------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | --------------------------------------------- | --------------------------------------------------- | ------ | -------- | -------- | ------------- | ------- | ------ | ------------ | ---------- | ------- | ---------- | ---------- | ---------- | -------- | ------- | ---------- | ---------- | ------- | ------- | ---------- | ---------- | ------- | ------- | ---------- | -
|                                                                                |                                                                                                                  | For the Year Ended December 31, 2006                                                 |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                               | Guarantor                                           |        |          |         
|                                                                                |                                                                                                                  |                                                                                      |                                               | Subsidiaries                                        |        |          |         
|                                                                                |                                                                                                                  | FMC-AG &                                                                             |                                               |                                                     |        |          |          | Non-Guarantor |         |        | Combining    |            |         | Combined   |           
|                                                                                |                                                                                                                  | Co. KGaA                                                                             |                                               |                                                     | D-GmbH |          |          | FMCH          |         |        | Subsidiaries |            |         | Adjustment |            |            | Total    |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Operating Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |           
|                                                                                | Net income (loss)                                                                                                |                                                                                      | $                                             | 536,746                                             |        |          | $        | (3,297        | )       |        | $            | 326,118    |         |            | $          | 612,190    |          |         | $          | (935,011   | )       |         | $          | 536,745    |        
|                                                                                | Adjustments to reconcile net income to cash and cash equivalents
    provided by (used in) operating activities: |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |            |        
|                                                                                |                                                                                                                  |                                                                                      | Equity affiliate income                       |                                                     |        | (451,099 | )        |               |         |       |              |            |         | (448,408   | )          |            |          |        |            |            |         | 899,507 |            |            |         |        |           
|                                                                                |                                                                                                                  |                                                                                      | Settlement of shareholder proceedings         |                                                     |        |         |          |               |         |       |              |            |         |           |            |            |          |        |            |            |         | (888    | )          |            |         | (888    | )         
|                                                                                |                                                                                                                  |                                                                                      | Depreciation and amortization                 |                                                     |        | 1,934    |          |               |         | 30,715 |              |            |         |           |            |            |          | 290,425 |            |            |         | (14,376 | )          |            |         | 308,698 |           
|                                                                                |                                                                                                                  |                                                                                      | Change in minority interest                   |                                                     |        |         |          |               |         |       |              |            |         |           |            |            |          |        |            |            |         | 24,333  |            |            |         | 24,333  |           
|                                                                                |                                                                                                                  |                                                                                      | Change in deferred taxes, net                 |                                                     |        | (14,072  | )        |               |         | (14    | )            |            |         |           |            |            |          | 32,927  |            |            |         | (7,937  | )          |            |         | 10,904  |           
|                                                                                |                                                                                                                  |                                                                                      | Loss (Gain) on investments                    |                                                     |        | 24,660   |          |               |         |       |              |            |         |           |            |            |          |        |            |            |         | (24,660 | )          |            |         |        |           
|                                                                                |                                                                                                                  |                                                                                      | Write-up of loans from related parties        |                                                     |        | (1,695   | )        |               |         |       |              |            |         |           |            |            |          |        |            |            |         | 1,695   |            |            |         |        |           
|                                                                                |                                                                                                                  |                                                                                      | Loss on sale of fixed assets                  |                                                     |        |         |          |               |         |       |              |            |         |           |            |            |          | 5,742   |            |            |         |        |            |            |         | 5,742   |           
|                                                                                |                                                                                                                  |                                                                                      | Compensation expense related to stock options |                                                     |        | 16,610   |          |               |         |       |              |            |         |           |            |            |          |        |            |            |         |        |            |            |         | 16,610  |           
|                                                                                |                                                                                                                  |                                                                                      | Cash inflow from hedging                      |                                                     |        | 10,908   |          |               |         |       |              |            |         |           |            |            |          |        |            |            |         |        |            |            |         | 10,908  |           
|Changes in assets and liabilities, net of amounts from
    businesses acquired: |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |           
|                                                                                |                                                                                                                  | Trade accounts receivable, net                                                       |                                               |                                                     |       |          |          |               | (9,094  | )      |              |            |        |            |            |            | (22,182  | )       |            |            |        |         |            |            | (31,276 | )      
|                                                                                |                                                                                                                  | Inventories                                                                          |                                               |                                                     |       |          |          |               | (4,210  | )      |              |            |        |            |            |            | (44,067  | )       |            |            | 5,724   |         |            |            | (42,553 | )      
|                                                                                |                                                                                                                  | Prepaid expenses and other current and non-current assets                            |                                               |                                                     | 10,123 |          |          |               | (4,566  | )      |              |            | 28,936  |            |            |            | (15,204  | )       |            |            | (40,918 | )       |            |            | (21,629 | )      
|                                                                                |                                                                                                                  | Accounts receivable from / payable to related parties                                |                                               |                                                     | 3,993  |          |          |               | 106,552 |        |              |            | 40,739  |            |            |            | (192,257 | )       |            |            | 36,098  |         |            |            | (4,875  | )      
|                                                                                |                                                                                                                  | Accounts payable, accrued expenses and other current and
    non-current liabilities |                                               |                                                     | (8,113 | )        |          |               | 8,726   |        |              |            | 7,675   |            |            |            | 158,132  |         |            |            | 16,457  |         |            |            | 182,877 |        
|                                                                                |                                                                                                                  | Income tax payable                                                                   |                                               |                                                     | 22,585 |          |          |               |        |        |              |            | (81,527 | )          |            |            | 24,568   |         |            |            | 10,124  |         |            |            | (24,250 | )      
|                                                                                |                                                                                                                  | Tax payments related to divestitures and acquisitions                                |                                               |                                                     |       |          |          |               |        |        |              |            |        |            |            |            | (63,517  | )       |            |            |        |         |            |            | (63,517 | )      
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) operating activities |        |          | 152,580  |               |         |        | 124,812      |            |         |            | (126,467   | )          |          |         | 786,757    |            |         |         | (29,852    | )          |         |         | 907,830    |  
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Investing Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |           
|                                                                                | Purchases of property, plant and equipment                                                                       |                                                                                      |                                               | (137                                                | )      |          |          | (31,267       | )       |        |              |           |         |            |            | (454,524   | )        |         |            | 18,735     |         |         |            | (467,193   | )      
|                                                                                | Proceeds from sale of property, plant and equipment                                                              |                                                                                      |                                               | 846                                                 |        |          |          | 395           |         |        |              |           |         |            |            | 16,417     |          |         |            |           |         |         |            | 17,658     |        
|                                                                                | Disbursement of loans to related parties                                                                         |                                                                                      |                                               | (361,156                                            | )      |          |          | 134           |         |        |              | (2,879,204 | )       |            |            |           |          |         |            | 3,240,226  |         |         |            |           |        
|                                                                                | Acquisitions and investments, net of cash acquired                                                               |                                                                                      |                                               | (22,671                                             | )      |          |          | (793          | )       |        |              |           |         |            |            | (4,314,968 | )        |         |            | 31,150     |         |         |            | (4,307,282 | )      
|                                                                                | Proceeds from disposal of businesses                                                                             |                                                                                      |                                               |                                                    |        |          |          |              |         |        |              |           |         |            |            | 515,705    |          |         |            |           |         |         |            | 515,705    |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash (used in) provided by investing activities |        |          | (383,118 | )             |         |        | (31,531      | )          |         |            | (2,879,204 | )          |          |         | (4,237,370 | )          |         |         | 3,290,111  |            |         |         | (4,241,112 | )
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Financing activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |           
|                                                                                | Short-term borrowings, net                                                                                       |                                                                                      |                                               | (17,239                                             | )      |          |          | (92,397       | )       |        |              |           |         |            |            | 94,899     |          |         |            |           |         |         |            | (14,737    | )      
|                                                                                | Long-term debt and capital lease obligations, net                                                                |                                                                                      |                                               | 27,769                                              |        |          |          | (879          | )       |        |              | 1,756,191  |         |            |            | 4,490,710  |          |         |            | (3,240,226 | )       |         |            | 3,033,565  |        
|                                                                                | Increase of accounts receivable securitization program                                                           |                                                                                      |                                               |                                                    |        |          |          |              |         |        |              |           |         |            |            | 172,000    |          |         |            |           |         |         |            | 172,000    |        
|                                                                                | Proceeds from exercise of stock options                                                                          |                                                                                      |                                               | 46,528                                              |        |          |          |              |         |        |              |           |         |            |            | 7,424      |          |         |            |           |         |         |            | 53,952     |        
|                                                                                | Proceeds from conversion of preference shares into ordinary
    shares                                           |                                                                                      |                                               | 306,759                                             |        |          |          |              |         |        |              |           |         |            |            |           |          |         |            |           |         |         |            | 306,759    |        
|                                                                                | Dividends paid                                                                                                   |                                                                                      |                                               | (153,720                                            | )      |          |          |              |         |        |              |           |         |            |            | (4,184     | )        |         |            | 4,184      |         |         |            | (153,720   | )      
|                                                                                | Capital increase (decrease)                                                                                      |                                                                                      |                                               |                                                    |        |          |          |              |         |        |              | 1,250,000  |         |            |            | (1,226,202 | )        |         |            | (23,798    | )       |         |            |           |        
|                                                                                | Change in minority interest                                                                                      |                                                                                      |                                               |                                                    |        |          |          |              |         |        |              | (520       | )       |            |            | (14,610    | )        |         |            |           |         |         |            | (15,130    | )      
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) financing activities |        |          | 210,097  |               |         |        | (93,276      | )          |         |            | 3,005,671  |            |          |         | 3,520,037  |            |         |         | (3,259,840 | )          |         |         | 3,382,689  |  
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Effect of exchange rate changes on cash and cash equivalents                    |                                                                                                                  |                                                                                      | 20,459                                        |                                                     |        |          | 3        |               |         |        |             |            |         |            | 4,483      |            |          |         | (419       | )          |         |         | 24,526     |           
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Cash and Cash Equivalents:                                                      |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |         |            |            |         |         |            |           
|Net increase (decrease) in cash and cash equivalents                            |                                                                                                                  |                                                                                      | 18                                            |                                                     |        |          | 8        |               |         |        |             |            |         |            | 73,907     |            |          |         |           |            |         |         | 73,933     |           
|Cash and cash equivalents at beginning of period                                |                                                                                                                  |                                                                                      | 1                                             |                                                     |        |          | 26       |               |         |        |             |            |         |            | 85,050     |            |          |         |           |            |         |         | 85,077     |           
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        
|Cash and cash equivalents at end of period                                      |                                                                                                                  | $                                                                                    | 19                                            |                                                     |        | $        | 34       |               |         | $      |             |            |         | $          | 158,957    |            |          | $       |           |            |         | $       | 159,010    |           
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |         |        |              |            |         |            |            |            |          |        

F-58



---



##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |          |         |         |          |  
|------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | --------------------------------------------- | --------------------------------------------------- | -------- | -------- | -------- | ------------- | ------- | ------ | ------------ | ------- | ------- | ---------- | ------- | -------- | -------- | ------- | -------- | -------- | ------ | ------- | ------- | -------- | ------- | ------- | -------- | -
|                                                                                |                                                                                                                  | For the Year Ended December 31, 2005                                                 |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                               | Guarantor                                           |          |          |         
|                                                                                |                                                                                                                  |                                                                                      |                                               | Subsidiaries                                        |          |          |         
|                                                                                |                                                                                                                  | FMC-AG &                                                                             |                                               |                                                     |          |          |          | Non-Guarantor |         |        | Combining    |         |         | Combined   |        
|                                                                                |                                                                                                                  | Co. KGaA                                                                             |                                               |                                                     | D-GmbH   |          |          | FMCH          |         |        | Subsidiaries |         |         | Adjustment |         |          | Total    |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Operating Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |         
|                                                                                | Net income (loss)                                                                                                |                                                                                      | $                                             | 454,952                                             |          |          | $        | 3,181         |         |        | $            | 263,460 |         |            | $       | 462,599  |          |         | $        | (729,240 | )      |         | $       | 454,952  |        
|                                                                                | Adjustments to reconcile net income to cash and cash equivalents
    provided by (used in) operating activities: |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |          |        
|                                                                                |                                                                                                                  |                                                                                      | Equity affiliate income                       |                                                     |          | (228,488 | )        |               |         |       |              |         |         | (294,649   | )       |          |          |        |          |          |        | 523,137 |         |          |         |        |         
|                                                                                |                                                                                                                  |                                                                                      | Settlement of shareholder proceedings         |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        |          |          |        | 7,335   |         |          |         | 7,335   |         
|                                                                                |                                                                                                                  |                                                                                      | Depreciation and amortization                 |                                                     |          | 1,893    |          |               |         | 31,967 |              |         |         |           |         |          |          | 232,749 |          |          |        | (15,157 | )       |          |         | 251,452 |         
|                                                                                |                                                                                                                  |                                                                                      | Change in deferred taxes, net                 |                                                     |          | 7,836    |          |               |         | (528   | )            |         |         |           |         |          |          | (5,138  | )        |          |        | (5,845  | )       |          |         | (3,675  | )       
|                                                                                |                                                                                                                  |                                                                                      | (Gain) loss on investments                    |                                                     |          | (48,373  | )        |               |         |       |              |         |         |           |         |          |          |        |          |          |        | 48,373  |         |          |         |        |         
|                                                                                |                                                                                                                  |                                                                                      | Write-up of loans from related parties        |                                                     |          | (17,276  | )        |               |         |       |              |         |         |           |         |          |          |        |          |          |        | 17,276  |         |          |         |        |         
|                                                                                |                                                                                                                  |                                                                                      | Loss on sale of fixed assets                  |                                                     |          |         |          |               |         | 284    |              |         |         |           |         |          |          | 3,681   |          |          |        |        |         |          |         | 3,965   |         
|                                                                                |                                                                                                                  |                                                                                      | Compensation expense related to stock options |                                                     |          | 1,363    |          |               |         |       |              |         |         |           |         |          |          |        |          |          |        |        |         |          |         | 1,363   |         
|                                                                                |                                                                                                                  |                                                                                      | Cash inflow from hedging                      |                                                     |          |         |          |               |         | (1,339 | )            |         |         |           |         |          |          | 1,339   |          |          |        |        |         |          |         |        |         
|Changes in assets and liabilities, net of amounts from
    businesses acquired: |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |         
|                                                                                |                                                                                                                  | Trade accounts receivable, net                                                       |                                               |                                                     |         |          |          |               | (14,645 | )      |              |         |        |            |         |          | (48,929  | )       |          |          |        |         |         |          | (63,574 | )      
|                                                                                |                                                                                                                  | Inventories                                                                          |                                               |                                                     |         |          |          |               | (4,507  | )      |              |         |        |            |         |          | (7,069   | )       |          |          | 1,765  |         |         |          | (9,811  | )      
|                                                                                |                                                                                                                  | Prepaid expenses and other current and non-current assets                            |                                               |                                                     | 4,738    |          |          |               | 4,490   |        |              |         | 3,320   |            |         |          | (119,397 | )       |          |          | 65,813 |         |         |          | (41,036 | )      
|                                                                                |                                                                                                                  | Accounts receivable from / payable to related parties                                |                                               |                                                     | (72,755  | )        |          |               | (26,544 | )      |              |         | 37,235  |            |         |          | 16,225   |         |          |          | 55,435 |         |         |          | 9,596   |        
|                                                                                |                                                                                                                  | Accounts payable, accrued expenses and other current and
    non-current liabilities |                                               |                                                     | 8,749    |          |          |               | 33,639  |        |              |         | 234     |            |         |          | 104,596  |         |          |          | 1,517  |         |         |          | 148,735 |        
|                                                                                |                                                                                                                  | Income tax payable                                                                   |                                               |                                                     | (100,380 | )        |          |               |        |        |              |         | (20,792 | )          |         |          | 31,883   |         |          |          | 291    |         |         |          | (88,998 | )      
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) operating activities |          |          | 12,259   |               |         |        | 25,998       |         |         |            | (11,192 | )        |          |         | 672,539  |          |        |         | (29,300 | )        |         |         | 670,304  |  
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Investing Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |         
|                                                                                | Purchases of property, plant and equipment                                                                       |                                                                                      |                                               | (90                                                 | )        |          |          | (27,649       | )       |        |              |        |         |            |         | (311,157 | )        |         |          | 24,127   |        |         |         | (314,769 | )      
|                                                                                | Proceeds from sale of property, plant and equipment                                                              |                                                                                      |                                               |                                                    |          |          |          | 1,417         |         |        |              |        |         |            |         | 16,010   |          |         |          |         |        |         |         | 17,427   |        
|                                                                                | Disbursement of loans to related parties                                                                         |                                                                                      |                                               | (64,349                                             | )        |          |          | 125           |         |        |              | 25,512  |         |            |         |         |          |         |          | 38,712   |        |         |         |         |        
|                                                                                | Acquisitions and investments, net of cash acquired                                                               |                                                                                      |                                               | (49,087                                             | )        |          |          |              |         |        |              |        |         |            |         | (99,938  | )        |         |          | 23,872   |        |         |         | (125,153 | )      
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash (used in) provided by investing activities |          |          | (113,526 | )             |         |        | (26,107      | )       |         |            | 25,512  |          |          |         | (395,085 | )        |        |         | 86,711  |          |         |         | (422,495 | )
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Financing Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |         
|                                                                                | Short-term borrowings, net                                                                                       |                                                                                      |                                               | 17,298                                              |          |          |          | 1,151         |         |        |              |        |         |            |         | (35,538  | )        |         |          |         |        |         |         | (17,089  | )      
|                                                                                | Long-term debt and capital lease obligations, net                                                                |                                                                                      |                                               | 137,766                                             |          |          |          |              |         |        |              | (13,800 | )       |            |         | 9,870    |          |         |          | (38,712  | )      |         |         | 95,124   |        
|                                                                                | Increase of accounts receivable securitization program                                                           |                                                                                      |                                               |                                                    |          |          |          | (1,045        | )       |        |              |        |         |            |         | (240,720 | )        |         |          |         |        |         |         | (241,765 | )      
|                                                                                | Proceeds from exercise of stock options                                                                          |                                                                                      |                                               | 80,366                                              |          |          |          |              |         |        |              |        |         |            |         | (422     | )        |         |          |         |        |         |         | 79,944   |        
|                                                                                | Dividends paid                                                                                                   |                                                                                      |                                               | (137,487                                            | )        |          |          |              |         |        |              |        |         |            |         | (5,320   | )        |         |          | 5,320    |        |         |         | (137,487 | )      
|                                                                                | Capital increase (decrease) of Non-Guarantor-Subsidiaries                                                        |                                                                                      |                                               |                                                    |          |          |          |              |         |        |              |        |         |            |         | 23,872   |          |         |          | (23,872  | )      |         |         |         |        
|                                                                                | Change in minority interest                                                                                      |                                                                                      |                                               |                                                    |          |          |          |              |         |        |              | (520    | )       |            |         |         |          |         |          | 2,026    |        |         |         | 1,506    |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) financing activities |          |          | 97,943   |               |         |        | 106          |         |         |            | (14,320 | )        |          |         | (248,258 | )        |        |         | (55,238 | )        |         |         | (219,767 | )
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Effect of exchange rate changes on cash and cash equivalents                    |                                                                                                                  |                                                                                      | 1,173                                         |                                                     |          |          | (3       | )             |         |        |             |         |         |            | (3,420  | )        |          |         | 319      |          |        |         | (1,931  | )       
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Cash and Cash Equivalents:                                                      |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |         |          |          |        |         |         |         
|Net (decrease) increase in cash and cash equivalents                            |                                                                                                                  |                                                                                      | (2,151                                        | )                                                   |          |          | (6       | )             |         |        |             |         |         |            | 25,776  |          |          |         | 2,492    |          |        |         | 26,111  |         
|Cash and cash equivalents at beginning of period                                |                                                                                                                  |                                                                                      | 2,152                                         |                                                     |          |          | 32       |               |         |        |             |         |         |            | 56,782  |          |          |         |         |          |        |         | 58,966  |         
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        
|Cash and cash equivalents at end of period                                      |                                                                                                                  | $                                                                                    | 1                                             |                                                     |          | $        | 26       |               |         | $      |             |         |         | $          | 82,558  |          |          | $       | 2,492    |          |        | $       | 85,077  |         
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |          |          |          |               |         |        |              |         |         |            |         |          |          |        

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##### Table of Contents



FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


(in thousands, except share data)


|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |          |         |         |          |  
|------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ | --------------------------------------------- | --------------------------------------------------- | ------ | -------- | -------- | ------------- | ------ | ------ | ------------ | -------- | ------- | ---------- | -------- | -------- | ------- | ------- | -------- | -------- | ------- | ------- | -------- | -------- | ------- | ------- | -------- | -
|                                                                                |                                                                                                                  | For the Year Ended December 31, 2004                                                 |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                              
|                                                                                |                                                                                                                  |                                                                                      |                                               | Guarantor                                           |        |          |         
|                                                                                |                                                                                                                  |                                                                                      |                                               | Subsidiaries                                        |        |          |         
|                                                                                |                                                                                                                  | FMC-AG &                                                                             |                                               |                                                     |        |          |          | Non-Guarantor |        |        | Combining    |          |         | Combined   |         
|                                                                                |                                                                                                                  | Co. KGaA                                                                             |                                               |                                                     | D-GmbH |          |          | FMCH          |        |        | Subsidiaries |          |         | Adjustment |          |          | Total   |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Operating Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |         
|                                                                                | Net income (loss)                                                                                                |                                                                                      | $                                             | 401,998                                             |        |          | $        | (2,340        | )      |        | $            | 249,254  |         |            | $        | 315,583  |         |         | $        | (562,497 | )       |         | $        | 401,998  |        
|                                                                                | Adjustments to reconcile net income to cash and cash equivalents
    provided by (used in) operating activities: |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |          |        
|                                                                                |                                                                                                                  |                                                                                      | Equity affiliate income                       |                                                     |        | (400,655 | )        |               |        |       |              |          |         | (286,567   | )        |          |         |        |          |          |         | 687,222 |          |          |         |        |         
|                                                                                |                                                                                                                  |                                                                                      | Depreciation and amortization                 |                                                     |        | 1,917    |          |               |        | 28,034 |              |          |         |           |          |          |         | 214,661 |          |          |         | (12,027 | )        |          |         | 232,585 |         
|                                                                                |                                                                                                                  |                                                                                      | Change in deferred taxes, net                 |                                                     |        | 636      |          |               |        | (4,241 | )            |          |         |           |          |          |         | 34,379  |          |          |         | 3,507   |          |          |         | 34,281  |         
|                                                                                |                                                                                                                  |                                                                                      | Loss (gain) on investments                    |                                                     |        | 72,100   |          |               |        |       |              |          |         |           |          |          |         | 9,287   |          |          |         | (81,387 | )        |          |         |        |         
|                                                                                |                                                                                                                  |                                                                                      | (Gain) loss on sale of fixed assets           |                                                     |        |         |          |               |        | (301   | )            |          |         |           |          |          |         | 1,036   |          |          |         |        |          |          |         | 735     |         
|                                                                                |                                                                                                                  |                                                                                      | Compensation expense related to stock options |                                                     |        | 1,751    |          |               |        |       |              |          |         |           |          |          |         |        |          |          |         |        |          |          |         | 1,751   |         
|                                                                                |                                                                                                                  |                                                                                      | Cash inflow from hedging                      |                                                     |        | 2,928    |          |               |        | 116    |              |          |         |           |          |          |         | 11,470  |          |          |         |        |          |          |         | 14,514  |         
|Changes in assets and liabilities, net of amounts from
    businesses acquired: |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |         
|                                                                                |                                                                                                                  | Trade accounts receivable, net                                                       |                                               |                                                     |       |          |          |               | (2,142 | )      |              |          |        |            |          |          | (5,744  | )       |          |          |        |         |          |          | (7,886  | )      
|                                                                                |                                                                                                                  | Inventories                                                                          |                                               |                                                     |       |          |          |               | 9,870  |        |              |          |        |            |          |          | 16,214  |         |          |          | 1,161   |         |          |          | 27,245  |        
|                                                                                |                                                                                                                  | Prepaid expenses and other current and non-current assets                            |                                               |                                                     | (3,039 | )        |          |               | 5,870  |        |              |          | 658     |            |          |          | 119,533 |         |          |          | (52,989 | )       |          |          | 70,033  |        
|                                                                                |                                                                                                                  | Accounts receivable from / payable to related parties                                |                                               |                                                     | (4,471 | )        |          |               | 4,882  |        |              |          | 37,235  |            |          |          | (39,766 | )       |          |          | (20,566 | )       |          |          | (22,686 | )      
|                                                                                |                                                                                                                  | Accounts payable, accrued expenses and other current and
    non-current liabilities |                                               |                                                     | 1,680  |          |          |               | (3,935 | )      |              |          | (1,788  | )          |          |          | 38,838  |         |          |          | 1,362   |         |          |          | 36,157  |        
|                                                                                |                                                                                                                  | Income tax payable                                                                   |                                               |                                                     | 24,353 |          |          |               |       |        |              |          | (24,876 | )          |          |          | 39,639  |         |          |          |        |         |          |          | 39,116  |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) operating activities |        |          | 99,198   |               |        |        | 35,813       |          |         |            | (26,084  | )        |         |         | 755,130  |          |         |         | (36,214  | )        |         |         | 827,843  |  
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Investing Activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |         
|                                                                                | Purchases of property, plant and equipment                                                                       |                                                                                      |                                               | (251                                                | )      |          |          | (36,332       | )      |        |              |         |         |            |          | (259,097 | )       |         |          | 16,948   |         |         |          | (278,732 | )      
|                                                                                | Proceeds from sale of property, plant and equipment                                                              |                                                                                      |                                               |                                                    |        |          |          | 1,617         |        |        |              |         |         |            |          | 16,741   |         |         |          |         |         |         |          | 18,358   |        
|                                                                                | Disbursement of loans to related parties                                                                         |                                                                                      |                                               | 29,666                                              |        |          |          | 108           |        |        |              | 454,404  |         |            |          |         |         |         |          | (484,178 | )       |         |          |         |        
|                                                                                | Acquisitions and investments, net of cash acquired                                                               |                                                                                      |                                               | (4,146                                              | )      |          |          |              |        |        |              |         |         |            |          | (103,863 | )       |         |          | 3,516    |         |         |          | (104,493 | )      
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash provided by (used in) investing activities |        |          | 25,269   |               |        |        | (34,607      | )        |         |            | 454,404  |          |         |         | (346,219 | )        |         |         | (463,714 | )        |         |         | (364,867 | )
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Financing activities:                                                           |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |         
|                                                                                | Short-term borrowings, net                                                                                       |                                                                                      |                                               | (25                                                 | )      |          |          |              |        |        |              |         |         |            |          | (40,802  | )       |         |          |         |         |         |          | (40,827  | )      
|                                                                                | Long-term debt and capital lease obligations, net                                                                |                                                                                      |                                               | (2,073                                              | )      |          |          | (1,471        | )      |        |              | (427,800 | )       |            |          | (523,596 | )       |         |          | 484,178  |         |         |          | (470,762 | )      
|                                                                                | Increase of accounts receivable securitization program                                                           |                                                                                      |                                               |                                                    |        |          |          |              |        |        |              |         |         |            |          | 177,767  |         |         |          |         |         |         |          | 177,767  |        
|                                                                                | Proceeds from exercise of stock options                                                                          |                                                                                      |                                               | 3,622                                               |        |          |          |              |        |        |              |         |         |            |          |         |         |         |          |         |         |         |          | 3,622    |        
|                                                                                | Dividends paid                                                                                                   |                                                                                      |                                               | (122,106                                            | )      |          |          |              |        |        |              |         |         |            |          | (16,870  | )       |         |          | 16,870   |         |         |          | (122,106 | )      
|                                                                                | Capital Increase (decrease) of Non-Guarantor-Subsidiaries                                                        |                                                                                      |                                               |                                                    |        |          |          |              |        |        |              |         |         |            |          | 3,480    |         |         |          | (3,480   | )       |         |          |         |        
|                                                                                | Change in minority interest                                                                                      |                                                                                      |                                               |                                                    |        |          |          |              |        |        |              | (520     | )       |            |          | (276     | )       |         |          | 1,185    |         |         |          | 389      |        
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|                                                                                |                                                                                                                  |                                                                                      |                                               | Net cash (used in) provided by financing activities |        |          | (120,582 | )             |        |        | (1,471       | )        |         |            | (428,320 | )        |         |         | (400,297 | )        |         |         | 498,753  |          |         |         | (451,917 | )
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Effect of exchange rate changes on cash and cash equivalents                    |                                                                                                                  |                                                                                      | (1,736                                        | )                                                   |        |          |         |               |        |        |             |          |         |            | 41       |          |         |         | 1,175    |          |         |         | (520     | )       
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Cash and Cash Equivalents:                                                      |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |         |          |          |         |         |          |         
|Net increase (decrease) in cash and cash equivalents                            |                                                                                                                  |                                                                                      | 2,149                                         |                                                     |        |          | (265     | )             |        |        |             |          |         |            | 8,655    |          |         |         |         |          |         |         | 10,539   |         
|Cash and cash equivalents at beginning of period                                |                                                                                                                  |                                                                                      | 3                                             |                                                     |        |          | 300      |               |        |        |             |          |         |            | 48,124   |          |         |         |         |          |         |         | 48,427   |         
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        
|Cash and cash equivalents at end of period                                      |                                                                                                                  | $                                                                                    | 2,152                                         |                                                     |        | $        | 35       |               |        | $      |             |          |         | $          | 56,779   |          |         | $       |         |          |         | $       | 58,966   |         
|                                                                                |                                                                                                                  |                                                                                      |                                               |                                                     |        |          |          |               |        |        |              |          |         |            |          |          |         |        

F-60



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##### Table of Contents






FRESENIUS MEDICAL CARE AG & CO. KGaA


(Formerly Fresenius Medical Care AG)


Financial Statement Schedule


(in thousands, except share data)


|                                 |                              |            |   |            |           |  |             |             |  |  |            |         |  |  |   |         | 
|-------------------------------- | ---------------------------- | ---------- | - | ---------- | --------- |  | ----------- | ----------- |  |  | ---------- | ------- |  |  | - | ------- | 
|                                 |                              |            |   | (Addition) |           |  | (Reduction) |             |  | 
|                                 |                              | Balance at |   |            | Charge to |  |             | Deductions/ |  |  | Balance at |        
|                                 |                              | Beginning  |   |            | Costs and |  |             | Write-offs/ |  |  | End of     |        
|                                 |                              | of Period  |   |            | Expenses  |  |             | Recoveries  |  |  | Period     |        
|                                 |                              |            |   |            |           |  |             |             |  |  |            |        
|Allowance for doubtful accounts: |                              |            |   |            |           |  |             |             |  |  |            |         |  |  |   |        
|                                 | Year ended December 31, 2006 |            | $ | 176,568    |           |  | $           | 177,285     |  |  | $          | 146,560 |  |  | $ | 207,293 | 
|                                 | Year ended December 31, 2005 |            | $ | 179,917    |           |  | $           | 140,799     |  |  | $          | 144,148 |  |  | $ | 176,568 | 
|                                 | Year ended December 31, 2004 |            | $ | 166,385    |           |  | $           | 131,257     |  |  | $          | 117,725 |  |  | $ | 179,917 | 

S-1