Sales development by business sector Audited by KPMG

Total revenues of the Pharmaceuticals business sector more than doubled in 2007 to €4,877 million, particularly owing to the Serono acquisition. This business sector now accounts for around 70% of total Merck revenues. The Merck Serono division generated total revenues of €4,458 million. A pro forma comparison of total revenues including Serono in 2006 results in an increase of 7.4% for 2007 (for details on the pro forma comparison, see the Merck Serono section of the management report). Special mention should be made here of the good development of Erbitux®, Rebif® as well as the products of the Concor® and Glucophage® families. The Consumer Health Care division generated total revenues of €420 million, which was 5.0% more than in 2006. In particular, the strategic brands developed favorably once again.

The Chemicals business sector increased total revenues by 1.8% to €2,150 million in 2007, accounting for around 30% of total Merck revenues. The Liquid Crystals division generated sales of €916 million, corresponding to an increase of 2.3%. On the one hand, currency effects had a negative impact. On the other hand, the previous year still included the sales of the ITO (indium tin oxide) glass business, which has meanwhile been sold. Adjusted for these effects, organic growth of the division amounted to 14%. Total revenues of the Performance & Life Science Chemicals division of €1,235 million were 1.5% above the previous year, as the business suffered from currency effects in the United States and Asia. Organic growth amounted to 4.7%.