Capital spending on property, plant and equipment totaled €283 million in 2007. This is nearly €30 million or 12% more than in 2006.

Discontinued operations accounted for €20 million of total capital spending. Adjusted for the disposal of the Generics business, capital spending amounted to €263 million. The ratio of capital spending to total revenues was 3.7% in 2007. Around €58 million or 22% of total capital spending by continuing operations was attributable to the companies of the former Serono Group in 2007.

Individual investment projects with a value of more than €0.5 million accounted for more than one-half of capital spending. In regional terms, Europe accounted for around 80% of capital spending adjusted for discontinued operations, with a focus on Germany. At its two largest production sites, namely Darmstadt and Gernsheim, Merck invested €123 million to establish new and expand existing production capacities and research and development facilities, among other things. Capital spending totaled €13 million in North America and €10 million in Latin America. Companies in Asia accounted for a total capital spending volume of €26 million. Spending focused mainly on liquid crystal production in Japan and Korea.

Adjusted for Generics, capital spending by the Pharmaceuticals business sector totaled €154 million, with the Merck Serono division accounting for the vast majority of this amount. Around 30% thereof related to headquarters in Darmstadt, Germany. Another area of focus is the expansion of biotechnological production capacities in Vevey, Switzerland.

Capital spending on property, plant and equipment amounted to €106 million in the Chemicals business sector, with the Liquid Crystals division accounting for €49 million and the Performance & Life Science Chemicals division for €58 million of this total. Both divisions invested primarily at the Darmstadt and Gernsheim sites to expand and modernize production facilities as well as to improve the infrastructure.

Merck plans to significantly increase capital spending in 2008. The largest individual project will be the expansion of biotechnological production capacities in Vevey, Switzerland.