Roche recorded sales of 7.6 billion Swiss francs in the first quarter of 2004. Compared with the same period last year, this represents an increase of 15 per cent in local currencies (+14 per cent in CHF) for the Group's core businesses. The Pharmaceuticals Division continued to grow faster than the market, increasing its sales by 17 per cent in local currencies (+16 per cent in CHF). The Diagnostics Division gained additional market share on sales growth of 10 per cent in local currencies (+11 per cent in CHF).

Commenting on the first-quarter figures, Roche chairman and CEO Franz B. Humer said, 'Roche has started the new year very well. Our Pharmaceuticals and Diagnostics Divisions continue to grow significantly faster than the market. The launch of Avastin in the United States makes us the only healthcare company in the world to supply four medicines that can help extend the lives of people with cancer and underscores our leadership in oncology. Barring unforeseen events, our continuing progress on the operational side and the redemption of our LYONs IV convertible notes will result in a substantial improvement in our net income this year and will also strengthen our balance sheet further.'

The Pharmaceuticals Division increased its sales by 17 per cent in local currencies and 16 per cent in Swiss francs in the first quarter of 2004. Sales of prescription medicines were up 18 per cent in local currencies (+16 per cent in CHF), with Roche, Genentech and Chugai all contributing to this strong growth with solid double-digit gains. Consumer Health also grew well ahead of the market, increasing its sales by 5 per cent.

The division's oncology, virology and transplantation franchises continued to be the main drivers of growth in prescription drug sales. Sales of oncology products1 were up 27 per cent, with major contributions to growth coming from products such as MabThera (+33 per cent), Herceptin (+27 per cent) and Kytril (+28 per cent). Pegasys and Copegus captured additional market share both in the United States and internationally, as combined sales of the two products reached 391 million Swiss francs in the first quarter. In the transplantation segment, CellCept and Valcyte/Cymevene continued on a growth path, with sales rising by 23 per cent and 38 per cent, respectively. Sales of NeoRecormon and Epogin advanced 5 per cent in the face of intense price competition.