Report on expected developments 

The total revenues and operating result of the Merck Group continued to develop well in the first quarter of 2011. As it is now apparent that sales of Cladribine Tablets will be minimal this year, full-year total revenues for the Merck Serono division are expected to increase by 1% to 6%, the lower range stated on February 21. The guidance given for the three other divisions remains as previously stated. As a result, the Executive Board now believes that full-year total revenues for the Group will increase by 10% to 15%, three percentage points lower than previously stated.

As demonstrated in the first quarter, the net financial debt of the Merck Group resulting from the Millipore acquisition will steadily decrease over the next several years, also as a result of a high free cash flow.

The Executive Board also expects the 2011 operating result for the Group will remain as stated on February 21 and should not be materially affected by the natural disaster and its consequences in Japan.