The following forecasts take into account the company’s assessment of opportunities and risks pursuant to the operational planning and the medium-term outlook of Merck. Merck does not forecast exchange rates for the stated planning calculations. Despite recent turbulent developments, the planning assumes a moderate development of energy and raw material prices as well as rising personnel costs.

Merck expects that in 2008, the increase in total revenues will range between 5% and 9%. The company expects double-digit growth in the operating result. Merck expects further increases in total revenues and the operating result in 2009 as well. Profit after tax from continuing operations, irrespective of potential exceptional items, will likewise improve during this period – also as a result of the revaluation of Serono’s inventories within the scope of the purchase price allocation.

Following the divestment of the Generics division in 2007 and the repayment of loans, Merck expects debt to remain low and, consequently, a better financial result. Gearing is likely to remain at a low level. Free cash flow, adjusted for acquisitions and disposals, is expected to remain at a high level. Merck intends to further increase its investments in property, plant and equipment as well as research and development spending in 2008 and 2009.

Dividend development

Changes to the long-term dividend policy are not planned. Based on the company’s earnings expectations, the family of owners and Merck shareholders can again expect to receive an earnings-oriented dividend.