APP Pharmaceuticals Invests $38 Million to Expand Its Grand Island, New York Manufacturing Facility

SCHAUMBURG, Ill.—June 15, 2011— APP Pharmaceuticals, Inc., a wholly owned subsidiary of Fresenius Kabi Pharmaceuticals Holding, Inc., announced today a $38 million expansion of its Grand Island, New York manufacturing facility.

APP’s investment includes enlarging the manufacturing site by 13,000 square feet and adding an additional six production lines for injectable products. Expansion measures are anticipated to last two years, with work on the site beginning in June 2011. Currently, 580 people work at the Grand Island site and APP plans to hire an additional 90 employees within the scope of the site expansion.

As a leading supplier of injectable pharmaceutical products in North America, APP offers one of the most comprehensive product portfolios used in hospitals, long-term care facilities, alternate care sites and clinics. At its Grand Island facility, the company manufactures a variety of injectable pharmaceutical products for the North America market that encompasses four therapeutic areas: anti-infectives, critical care, analgesia/anesthesia and oncology. The expansion will increase APP’s manufacturing capabilities of injectable generics, enabling the company to make a significant contribution to meeting the steadily growing market demand for these products in the future.

“The Grand Island facility has a longstanding expertise in the production of injectable generics,” said Frank Harmon, Executive Vice President and Chief Operating Officer at APP Pharmaceuticals. “The expansion of Grand Island demonstrates our commitment to Erie County and the State of New York to remain an active employer in the region.”

In addition, the company announced that Empire State Development will provide $1,187,763 in Excelsior Jobs Program tax credits over a five year period, while the New York Power Authority will assist with an allocation of 2,000 kW to bring the company’s power costs in line with other out-of-state locations. Erie County Economic Development Corporation will provide property tax, sales tax and mortgage tax abatements.

“APP Pharmaceuticals will create good, quality jobs that will help expand the important life sciences sector of our economy and help Western New York continue its revitalization,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “We’re pleased that Empire State Development could be a part of APP’s decision to remain in Grand Island.”

Dr. Michael Schönhofen, President, Science, Production & Technology, Fresenius Kabi added, “The Grand Island facility forms part of a global supply chain network that provides pharmaceutical products to the U.S. and Canada. The investment in this facility is an important step within our production strategy. Through the expansion, the site will significantly contribute to the continuous local supply of high quality injectable generics for the U.S. and Canada.”

Built in 1970, APP’s Grand Island plant obtained FDA certification that same year. The facility has been expanded a number of times, most recently in 2005 when the company enhanced the site’s manufacturing capability for aseptic filling and packaging, as well as for the production of oncology drugs.

About APP Pharmaceuticals, Inc.
APP Pharmaceuticals, Inc. is a fully-integrated pharmaceutical company that develops, manufactures and markets injectable pharmaceutical products with a primary focus on the oncology, anti-infective, anesthetic/analgesic and critical care markets. The company offers one of the most comprehensive product portfolios used in hospitals, long-term care facilities, alternate care sites and clinics within North America and manufactures a comprehensive range of dosage formulations. Fresenius Kabi Pharmaceuticals Holding, Inc., a wholly owned subsidiary of Fresenius Kabi AG, acquired APP Pharmaceuticals, Inc. on September 10, 2008. For more information about APP Pharmaceuticals, Inc., please visit the company’s Web site at www.APPpharma.com.

About Fresenius Kabi AG
Fresenius Kabi AG is the leader in infusion therapy and clinical nutrition in Europe and in its most important countries of Latin America and Asia Pacific. Fresenius Kabi’s core product range includes infusion solutions, blood volume substitutes, I.V. drugs and parenteral nutrition, as well as products for enteral nutrition. Furthermore, the company provides concepts for ambulatory health care and is focused on managing and providing home therapies. With the philosophy “caring for life” and a comprehensive product portfolio, the company aims at improving the quality of life of critically and chronically ill patients all over the world. In 2010, Fresenius Kabi achieved sales of EUR 3,672 million and an operating profit of EUR 737 million. For more information visit the company’s Web site at www.fresenius-kabi.com. Fresenius Kabi AG is a 100% subsidiary of Fresenius SE & Co. KGaA.

Forward-Looking Statement
The statements contained in this news release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this news release include statements regarding our expectations, beliefs, hopes, goals, intentions, initiatives or strategies, including statements regarding the demand, supply and distribution of our products. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to, the availability and pricing of ingredients used in the manufacture of pharmaceutical products and the ability to successfully manufacture products in a time-sensitive and cost effective manner. Additional relevant information concerning risks can be found in the Fresenius Kabi Pharmaceuticals Holding, Inc. 10-K for the fiscal year ending December 31, 2010 and other documents the company has filed with the Securities and Exchange Commission.

The information contained in this news release is as of the date of this release. Fresenius Kabi Pharmaceuticals Holding, Inc. does not assume any obligation to update or revise these forward-looking statements to conform the statement to actual results, new information, developments or changes in the Company’s expectations.
 

APP Contact
Debra Lynn Ross, ABC
Director, Corporate Communications
APP Pharmaceuticals, Inc.
(847) 969-8026
dross@apppharma.com