EXHIBIT 99.1
[GRAPHIC OMITTED]
Fresenius Medical Care
P R E S S R E L E A S E
Fresenius Medical Care AG
Investor Relations
Else-Kroner-Str. 1
D-61352 Bad Homburg
Contact:
Oliver Maier
Phone: + 49 6172 609 2601
Fax: + 49 6172 609 2301
E-mail: ir-fms@fmc-ag.com
North America:
Heinz Schmidt
Phone: + 1 781 402 9000
Ext.: 4518
Fax: + 1 781 402 9741
E-mail: ir-fmcna@fmc-ag.com
Internet: http://www.fmc-ag.com
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February 12, 2003
Fresenius Medical Care announces definitive agreement to settle
fraudulent conveyance and all other W.R. Grace bankruptcy related
issues;
The Company confirms adequacy of accrued reserve
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Bad Homburg, Germany - February 12, 2003 -- Fresenius Medical Care AG ("the
Company") (Frankfurt Stock Exchange: FME, FME3) (NYSE: FMS, FMS_p), the world's
largest provider of dialysis products and services, today announced that it has
signed a definitive agreement with the official committees of asbestos creditors
for the settlement of all fraudulent conveyance and other claims related to the
bankruptcy of W.R. Grace & Co.
Under the terms of the definitive agreement, fraudulent conveyance and other
claims raised by the asbestos committees on behalf of the Grace bankruptcy
estates will be dismissed with prejudice upon confirmation of the W.R. Grace &
Co. bankruptcy reorganization plan. In addition, the Company will also receive
protection against all current and future W.R. Grace-related claims including
fraudulent conveyance, asbestos and income tax claims relating to the non-NMC
members of the W.R. Grace & Co. consolidated tax group.
This definitive agreement supersedes the terms of the earlier agreement in
principle announced on November 29, 2002, under which the Company would have
paid $ 15 million to the W.R. Grace bankruptcy estate upon plan confirmation and
also retained responsibility to resolve the outstanding pre-merger income taxes
of the W.R. Grace & Co. consolidated group. Payments and expenses under those
previous terms were expected to remain within the amount reserved by the Company
in the fourth quarter 2001.
In the definitive agreement announced today the Company has agreed to pay in
total $ 115 million to the W.R. Grace bankruptcy estate or as otherwise directed
by the court upon plan confirmation. Consequently, the Company is relieved of
the burden of resolving W.R. Grace's tax obligations and can confirm the
adequacy of it's accrued reserve. No admission of liability has been or will be
made. As part of the W.R. Grace Chapter 11 proceeding, the definitive agreement
will be submitted to the court for approval.
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Ben Lipps, Chief Executive Officer of Fresenius Medical Care, commented: "The
terms of this definitive agreement provide certainty and finality for Fresenius
Medical Care upon plan confirmation. This settlement not only avoids the costs
of expensive and distracting fraudulent conveyance litigation, but also relieves
Fresenius Medical Care of the burden of resolving the tax liabilities of the
W.R. Grace consolidated group. We are indeed pleased to have this behind us and
we now look forward to focusing all of our energies on bringing innovative
therapies to the treatment of kidney disease."
Fresenius Medical Care AG is the world's largest, integrated provider of
products and services for individuals undergoing dialysis because of chronic
kidney failure, a condition that affects more than 1,100,000 individuals
worldwide. Through its network of approximately 1,450 dialysis clinics in North
America, Europe, Latin America and Asia-Pacific, Fresenius Medical Care provides
Dialysis Treatment to approximately 110,100 patients around the globe. Fresenius
Medical Care is also the world's leading provider of Dialysis Products such as
hemodialysis machines, dialyzers and related disposable products. For more
information about Fresenius Medical Care, visit the Company's website at
http://www.fmc-ag.com.
This release contains forward-looking statements that are subject to various
risks and uncertainties. Actual results could differ materially from those
described in these forward-looking statements due to certain factors, including
changes in business, economic and competitive conditions, regulatory reforms,
foreign exchange rate fluctuations, uncertainties in litigation or investigative
proceedings, and the availability of financing. These and other risks and
uncertainties are detailed in Fresenius Medical Care AG's reports filed with the
U.S. Securities and Exchange Commission. Fresenius Medical Care AG does not
undertake any responsibility to update the forward-looking statements in this
release.
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