SRT Sartorius AG

The Sartorius Group continued its successful development in the first half of 2007. Even without including initially consolidated French-based Stedim S.A., the Sartorius Group again increased its order intake, sales revenue and earnings. Both divisions and all business regions of the Group contributed to the positive results. In particular, business with disposable products for biotechnological applications as well as with industrial weighing equipment was especially encouraging, generating double-digit growth rates. On a pro forma(1) basis, i.e., by mathematically including Stedim, first-half order intake of the Group climbed 8.6% to 331.6 million euros (1st half 2006: without Stedim 261.3 million euros; pro forma 305.4 million euros). This corresponds to a currency-adjusted gain of pro forma 11.4%. First-half sales revenue for the Group in 2007 was pro forma 312.2 million euros (1st half 2006: without Stedim 257.1 million euros; pro forma 302.9 million euros). This corresponds to an increase of pro forma 3.1% or a currency-adjusted gain of 5.5%. Sartorius posted strong increases in North America and Asia Pacific. In Europe, moderate growth was achieved. Excluding Stedim, the Group achieved growth in constant currencies of 12.4% in order intake and 5.6% in sales revenue. EBITA of the Group rose to 24.4 million euros from 22.0 million euros reported for the previous year. On a pro forma basis, earnings are at a substantially higher level. Adjusted for extraordinary expenses, earnings were 29.9 million euros, up from 29.5 million euros a year ago. Thus, the pro forma operating EBITA margin was 9.6% (1st half 2006: 9.7%). �By combining our Biotechnology Division with Stedim, we are boosting the Group to new levels in sales revenue and earnings,� commented Dr.�Joachim Kreuzburg, Executive Board Chairman and CEO of Sartorius AG, concerning the first interim report following the closing of the Stedim transaction. �For 2007, we expect to generate pro forma sales revenue of more than 25 percent above the actual 2006 sales revenue figure as well as pro forma operating earnings of more than 50 percent above actual 2006 earnings.� Overall, 2007 for Sartorius has been shaped by the guiding policy of acceleration. In addition to key strategic steps, such as the combination of the Biotechnology Division with publicly listed Stedim and the acquisition of the plastic-processing manufacturer toha-plast, expansion of laboratory capacity in Goettingen, Germany, and extension of the Group facilities in Beijing, China, were completed in the first half. This is also reflected in the total of capital expenditures: during the first months of fiscal 2007, the Group invested 18.4 million euros (without Stedim), considerably more than in the previous year (11.2 million euros). Also, as of the first half, the number of employees increased significantly to a total of 4,505 (December 31, 2006: 3,749). Above all, this can be attributed to the incorporation of some 500 Stedim employees and about 80 staff members of Sartorius toha-plast into the Group workforce. R&D costs were 20.6 million euros (without Stedim), thus 7.7% of sales revenue, and were essentially due to the additional employment of specialized personnel and the expansion of our research and development facilities. Relative to December 31, 2006, the balance sheet total of the Sartorius Group approximately doubled to 765.3 million euros, primarily on account of the Stedim transaction. After completion of the Stedim transaction, the equity ratio was at 42.2% (December 31, 2006: 44.8%) and thus has continued to remain at a very comfortable level. Business Development of the Divisions Since its combination on June 29, 2007, with Stedim, the Biotechnology Division, which is now renamed Sartorius Stedim Biotech, reported a substantial first-half 2007 gain of pro forma 10.1% in order intake (currency-adjusted: 13.1%) to 198.3 million euros (1st half 2006: pro forma 180.1 million euros; without Stedim 136.1 million euros). Pro forma sales revenue rose 2.7% (currency-adjusted: 5.3%) to 186.6 million euros (1st half 2006: pro forma 181.7 million euros; without Stedim 135.9 million euros). Here, growth was fueled in particular by considerable double-digit growth rates generated by single-use products. Pro forma operating EBITA for the Biotechnology Division was 21.3 million euros. This corresponds to an EBITA margin of 11.4%. In the reporting period, the Biotechnology Division incurred pro forma extraordinary expenses totaling 3.2 million euros, which essentially consisted of extraordinary expenses at Stedim as well as transaction and integration expenses. The Mechatronics Division substantially increased its first-half order intake by 6.4% (currency-adjusted: 8.9%) to 133.3 million euros from 125.3 million euros a year ago. Its sales revenue grew 3.7% (currency-adjusted: 5.9%) to 125.6 million euros from 121.2 million euros a year earlier. In particular, business with industrial weighing equipment showed highly positive development, generating double-digit growth rates. EBITA for the Mechatronics Division rose from 7.2 million euros to 8.6 million euros. Accordingly, its EBITA margin climbed from 5.9% to 6.9%. Assessment and Outlook Group chief executive Dr. Kreuzburg was satisfied with the progress of the first half and with that of the integration of the two acquisitions: �In the first half, we really moved forward and accomplished quite a lot through our acquisitions and investments as well as implementation of the new group structure, laying the groundwork for accelerated growth in sales revenue and earnings. Considerable progress has already been made with the integration of Stedim, and that involving toha-plast has already been completed.� Dr.�Kreuzburg assessed the future prospects of the Group as positive as well: �In both divisions, we see ourselves on track for achieving our ambitious mid-range financial targets.� Based on the strong order intake trend in the first half of 2007 and the further business expectations, the Group confirms its pro forma operating sales forecast to date. However, due to the unfavorable development of the exchange rates during the past months, it has adjusted its pro forma sales forecast in the reporting currency to 650 to 670 million euros (previous forecast 660 to 680 million euros; year-earlier period: without Stedim 521.1 million euros). For the Biotechnology Division, the Group anticipates that it will generate pro forma sales revenue of 390 to 410 million euros (year-earlier period: without Stedim 271.0 million euros). For the Mechatronics Division, the Group expects to earn sales revenue of about 260 million euros (year-earlier period: 250.0 million euros). On the basis of these sales revenue expectations, Sartorius (FWB:SRT) is continuing to pursue its target for fiscal 2007 of increasing the pro forma underlying EBITA margin to approximately 12% (year-earlier period: without Stedim 10.0%). For the Biotechnology Division, the full-year pro forma underlying EBITA margin is expected to reach about 14%; for the Mechatronics Division, roughly 9%. For fiscal 2007, the Group estimates that the sum of extraordinary expenses resulting from the Stedim transaction and integration within the Biotechnology Division will be about 10 million euros. (1)For the Biotechnology Division and thus for the Sartorius Group as well, so-called pro forma disclosures are made that mathematically include Stedim and that are for the purpose of ensuring better comparability of the figures under the technical assumption that Stedim was already consolidated for the first time as of January 1, 2006. For the Mechatronics Division, it is not necessary to provide pro forma numbers for the key figures. You will find an in-depth first-half report along with detailed pro forma and actual figures at www.sartorius.com. Current image files: Joachim Kreuzburg, Executive Board Chairman and CEO of Sartorius AG: www.sartorius-stedim.com/media/content/press/support/ Dr_Kreuzburg.jpg (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Working in the laboratory with equipment from Sartorius: http://www.sartorius.com/fileadmin/presse/Sartorius.jpg Biopharmaceutical filtration process using Sartorius disposable products: http://www.sartorius.com/media/content/press/support/Sartorius.jpg Upcoming financial dates: October 31, 2007(a) Nine-month report 2007 March 13, 2008(a) Annual press conference in Goettingen, Germany April 23, 2008(a) Annual Shareholders' Meeting in Goettingen, Germany (a) tentative date This press release contains statements about the future development of the Sartorius Group. We cannot guarantee that the content of these statements will actually apply because these statements are based upon assumptions and estimates that harbor certain risks and uncertainties. A profile of Sartorius The Sartorius Group is an internationally leading laboratory and process technology provider covering the segments of biotechnology and mechatronics. In 2006, the technology group earned sales revenue of 521.1 million euros. The Goettingen-based company founded in 1870 currently employs approximately 4,500 persons. Its biotechnology segment covers major areas of focus on fermentation, filtration, purification, fluid management and laboratory applications. For the mechatronics segment in particular, the company manufactures equipment and systems featuring weighing, measurement and automation technology for laboratory and industrial applications, as well as hydrodynamic bearings. Key Sartorius customers are from the pharmaceutical, chemical and food and beverage industries and from numerous research and educational institutes of the public sector. Sartorius has its own production facilities in Europe, Asia and America as well as sales subsidiaries and local commercial agencies in more than 110 countries. This is a translation of the original German-language press release. Sartorius shall not assume any liability for the correctness of this translation. The original German press release is the legally binding version. Furthermore, Sartorius reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.