Fresenius Medical Care AG, the world’s largest provider of Dialysis Products and Services, has entered into a definitive agreement to acquire Renal Care Group, Inc, Nashville, Tennessee, for a price of $48.00 per share in cash.

The total net consideration for the acquisition of all outstanding shares of Renal Care Group, Inc., is $3.5 billion (on a fully diluted basis), which will be all-debt financed. The acquisition is anticipated to be neutral to slightly accretive to earnings in 2006 and clearly accretive to earnings in 2007 and thereafter.

Renal Care Group, Inc. is a fast-growing, highly profitable dialysis service provider that will be an attractive complement to Fresenius Medical Care’s US business. In 2004, Renal Care Group’s revenue was approx. $1.35 billion with an EBIT of $254 million and a net income of $122 million. As of March 31, 2005, Renal Care Group owned more than 425 dialysis clinics and served over 30,400 patients. Renal Care Group generates an industry-leading share of 43% of its revenue from private payers.

Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: “This acquisition solidifies Fresenius Medical Care’s position as the leader in dialysis services in the U.S. With its service network, Renal Care Group provides an excellent strategic and geographic fit to Fresenius Medical Care’s operations in the world’s largest dialysis market.”