May 23, 2003 - Some excerpts from Dr. Ben Lipps's presentation (pdf format) at the Fresenius Medical Care AG (FMC) Annual Meeting.

Accomplished in 2002:

"In North American, (FMC) strengthened (its) leadership position with unique dialysis therapy advantages. Until now in North America, dialyzers were generally cleaned and reused several times.

• However, with the introduction of the innovative treatment concept "UltraCare" in (FMC) dialysis clinics, which includes Fresenius polysulfone high-flux single-use dialyzers, (FMC) is pursuing a strategy of long-term growth in North American patient care business.
  
  
  
• (FMC's) biggest financial challenge of 2002 was to manage the financial costs during the introduction of single-use dialyzers in (FMC) clinics. Savings realized came from reaching economies of scale in terms of dialyzer manufacturing capacity and efficiency gains in medical supply costs and clinic operations.
  
  
  
• Now (FMC) has been able to make the UltraCare therapy cost neutral. This is a major accomplishment. In addition, (FMC) expects to achieve better medical outcomes for (its) patients."

Financial results and market shares:

Dialysis care and products are now a $30 billion market. Market shares are:

1. Fresenius Medical Care - 25 percent
   
   
2. Baxter International - 23 percent
   
   
3. Gambro - 16 percent
   
   
4. Other - 36 percent
   

There are approximately 1.2 million end-stage renal disease (ESRD) patients in key global markets:

• North America - 26 percent
  
  
• Europe - 31 percent
  
  
• Asia Pacific - 32 percent
  
  
• Latin America - 11 percent

This market is expected to grow 6 percent per annum resulting in an expected patient population of 1.6 million by the year 2006.

Patient treatment data:

• Globally, in 2002, FMC performed 16.4 million dialysis treatments for more than 112,000 patients in 1480 clinics.
  
  
  
• In North America, FMC performed 11.6 million treatments for 79,600 patients in 1080 clinics.
  
  
  
• In the international regions, FMC performed 4.8 million treatment for 32,600 patients in 400 clinics

Market shares:

• Dialyzers - 41 percent
  
  
• Machines - 48 percent
  
  
• Peritoneal dialysis - 17 percent
  
  
• Bloodlines and concentrate - 27 percent

[This message has been edited by Gary Peterson (edited 05-23-2003).]