Fresenius Kabi Pharmaceuticals Holding, Inc. Releases Third Quarter Results

SCHAUMBURG, Ill.--(BUSINESS WIRE)--Nov. 3, 2008--Fresenius Kabi Pharmaceuticals Holding, Inc. (NASDAQ:APCVZ) ("FKP Holdings") the newly formed holding company that acquired APP Pharmaceuticals, Inc. ("APP") on September 10, 2008, today released financial results for the third quarter and for the nine months ended September 30, 2008. These results include APP's results for the portion of the third quarter and the nine-month period prior to the closing of the acquisition and FKP Holdings' results from July 2, 2008, through September 30, 2008, which also includes the results of operations of APP post acquisition.

Third quarter revenues were $198 million, a 29 percent increase over APP's revenue of $153 million for the same period in 2007. Revenues for the nine-month period ended September 30, 2008 were $544 million, a 20 percent increase over APP's revenue of $453 million for the same period in 2007.

For the third quarter, net loss was $242 million, as compared to a net loss of $8 million for APP in the third quarter of 2007, after inclusion of a net loss from discontinued operations of $22 million in 2007. Net loss for the nine-month period ended September 30, 2008 was $209 million compared to APP's net income of $26 million for the same period in 2007, after inclusion of a net loss from discontinued operations of $25 million during 2007. Excluding acquisition and separation-related charges net income for the quarter was $21 million and $56 million for the nine-month period ended September 30, 2008.

For the third quarter and for the nine months ending September 30, 2008, Adjusted EBITDA, as defined in the indenture governing the Contingent Value Rights (CVRs) of FKP Holdings, was $87 million and $217 million, respectively.

Revenue guidance for 2008 has been modified to be between $765 million and $785 million and Adjusted EBITDA guidance for 2008 has been modified to be between $315 million and $325 million. Guidance previously provided by APP was revenue between $800 million and $820 million and Adjusted EBITDA between $325 million and $350 million. The components of Adjusted EBITDA are reflected in APP's second quarter earnings release filed on July 31, 2008 and changes in guidance primarily related to Adjusted EBITDA result from changes in the revenue guidance noted above.

On a going forward basis, the financial results for FKP Holdings will not be reported in an earnings release and will be reported in FKP Holdings' filings with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures
Amounts reported on a combined basis (i.e., including both the successor and predecessor periods) above and in the accompanying tables are non-GAAP measures and should not be considered in isolation of, or as a substitute for, the discrete information prepared and presented for the predecessor and successor periods in accordance with GAAP. Similarly, Adjusted EBITDA is a defined term in the indenture governing the Contingent Value Rights (CVRs), however it is not a recognized term under GAAP and should not be considered in isolation of, or as a substitute for, the information prepared and presented in accordance with GAAP. Because not all companies calculate Adjusted EBITDA identically, FKP Holdings' definition of adjusted EBITDA may not be comparable to similarly titled measures of other companies. The attached financial pages provide a reconciliation of net income to Adjusted EBITDA.

About Fresenius SE
Fresenius SE is a health care group with international operations, providing products and services for dialysis, hospital and outpatient medical care. In 2007, group sales were approximately EUR 11.4 billion. On June 30, 2008 the Fresenius Group had 117,453 employees worldwide. For more information visit the company's website at www.fresenius.com.

About Fresenius Kabi Pharmaceuticals Holding, Inc.
Fresenius Kabi Pharmaceuticals Holdings, a wholly owned subsidiary of Fresenius SE, acquired the Schaumburg, Illinois-based APP Pharmaceuticals on September 10, 2008. Under the terms of the agreement, Fresenius acquired the outstanding common stock of APP for $23.00 in cash per share plus a Contingent Value Right that could deliver up to an additional $6.00 per CVR in cash, pending achievement of certain financial targets (payable in Q2 2011).

About APP Pharmaceuticals
APP 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.

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 financial guidance for 2008. 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 continued market acceptance and demand of new and existing products; the difficulties or delays in developing, testing, obtaining regulatory approval of, and producing and marketing of the company's products; the impact of competitive products and pricing; 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 Fresenius Kabi Pharmaceuticals Holding's prospectus dated August 20, 2008, and other documents it 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 assumes no obligations to update any forward-looking statements contained in this news release as the result of new information or future events or developments.

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On September 10, 2008, APP Pharmaceuticals, Inc. ("APP") closed an Agreement and Plan of Merger entered into on July 6, 2008, with Fresenius SE and certain of its direct and indirect subsidiaries pursuant to which APP became a wholly-owned operating subsidiary of Fresenius Kabi Pharmaceuticals Holding, Inc. ("FKP Holdings or the Company"), which is a wholly owned subsidiary of Fresenius SE. For accounting purposes the Company has separated its historical financial results for the Predecessor Company (APP) for all periods prior to September 10, 2008, the effective date of the merger, and the Successor Company (FKP Holdings) for all periods after July 2, 2008, which include the results of APP from September 10, 2008. The separate presentation is required as there was a change in accounting basis, which occurred when purchase accounting was applied to the acquisition of the Predecessor. Purchase accounting requires that the historical carrying value of assets acquired and liabilities assumed be adjusted to fair value, which may yield results that are not comparable on a period-to-period basis due to the different, and sometimes higher, cost basis associated with the allocation of the purchase price.

On September 10, 2008, APP Pharmaceuticals, Inc. ("APP") closed an Agreement and Plan of Merger entered into on July 6, 2008, with Fresenius SE and certain of its direct and indirect subsidiaries pursuant to which APP became a wholly-owned operating subsidiary of Fresenius Kabi Pharmaceuticals Holding, Inc. ("FKP Holdings or the Company"), which is a wholly owned subsidiary of Fresenius SE. For accounting purposes the Company has separated its historical financial results for the Predecessor Company (APP) for all periods prior to September 10, 2008, the effective date of the merger, and the Successor Company (FKP Holdings) for all periods after July 2, 2008, which include the results of APP from September 10, 2008. The separate presentation is required as there was a change in accounting basis, which occurred when purchase accounting was applied to the acquisition of the Predecessor. Purchase accounting requires that the historical carrying value of assets acquired and liabilities assumed be adjusted to fair value, which may yield results that are not comparable on a period-to-period basis due to the different, and sometimes higher, cost basis associated with the allocation of the purchase price.

CONTACT:

Investor and Media Inquiries:
Hill & Knowlton
Christine Cassiano, 310-633-9495
or Investor Inquiries:
Fresenius SE
Birgit Grund, Senior Vice President, +49-6172-608-2485

SOURCE: Fresenius Kabi Pharmaceuticals Holding, Inc.