Disociaci´ on t´ ermica e isomerizaci´ on

Pleasing development of earnings despite high one-time special effects

Overall, the earnings situation developed once again positively in fiscal year 2007.

Net incomerose clearly by 14% to € 105.1 million in 2007 (previous year: € 91.8 million).

Earnings per share1)_{thus amounted to € 1.80 in fiscal year 2007 (previous year: € 1.70). Here, it must be taken}

into consideration that the average number of STADA shares increased by approx. 8% in the reporting year as com- pared to the previous year due to the exercise of options since that time.Diluted earnings per share2)_{, which are} also influenced by the share price, among other factors, amounted to € 1.74 in 2007 (previous year: € 1.62). The other key earnings figures also partially showed a very clear plus in fiscal year 2007. In detail the following items grew in the reporting year as compared to the previous year:operating profitby 19% to € 215.5 million (previous year: € 180.5 million),earnings before taxes(EBT) by 4% to € 150.7 million (previous year: € 145.2 mil- lion),earnings before interest and taxes(EBIT) by 11% to € 187.8 million (previous year: € 168.7 million),

earnings before interest, taxes, depreciation and amortization(EBITDA) by 24% to € 289.5 million (previous

year: € 232.6 million).

The respective sales-related profit margins thus were as follows:operating profit margin13.7% (previous year: 14.5%),EBITDA margin18.4% (previous year: 18.7%),EBIT margin12.0% (previous year: 13.5%),EBT margin

9.6% (previous year: 11.7%) and net profit margin6.7% (previous year: 7.4%). 180.5 215.5 2006 2007 Operating profit in € million 232.6 289.5 2006 2007 EBITDA in € million 168.7 187.8 2006 2007 EBIT in € million 145.2 150.7 2006 2007 EBT in € million 91,8 105.1 2006 2007 Net income in € million

1) One-time special effects in the year 2006 were: a) burdens in the amount of € 12.0 million before taxes or € 6.3 mil- lion after taxes for the closing of US activities, reported below operating profit as a separate line in the income statement, b) unscheduled depreciation in the amount of € 13.8 million before taxes or € 9.9 million after taxes, c) compensation payments to an initial supplier in the amount of € 1.9 million before taxes or € 1.1 million after taxes, d) book profit from disposals in the amount of € 9.7 million before taxes or € 7.1 million after taxes.

2) Early entry: early product launch of a first generic with approval of the initial supplier before expiration of the relevant commercial property right.

The decline of most sales-related profit margins is mainly based on a, in balance, clearly higher burden due to one- time special effects as compared with the previous year. This net burden amounted to a total of € 61.5 million before taxes or € 41.6 million after taxes in fiscal year 2007; the one-time special effects in fiscal year 2006 had resulted at the time in a net burden in the total amount of € 18.0 million before taxes or € 10.3 million after taxes.1)

One-time special effectssignificantly affecting earnings in fiscal year 2007 comprised in detail:

• Restructuring measures of the German generics sales:

a burden in the total amount of € 28.1 million before taxes or approx. € 17.9 million after taxes resulted from the restructuring measures of the German STADA generics sales (see “Development of Segments – Regional Devel- opment – Germany”). The final burden was thereby slightly below expectations at the beginning of the restructuring measures (see the company’s ad hoc release of September 28, 2007 and interim report for the first nine months of 2007). This one-time restructuring expense was, in accordance with IAS 19, classified as an expense in the scope of personnel measures and was presented in accordance with IAS 1 (framework) as a separate line below operating profit. Thus, operating profit was not affected by this.

• Unscheduled depreciation on intangible assets and financial assets:

a burden in the amount of approx. € 35.3 million before taxes or approx. € 26.1 million after taxes resulted from unscheduled depreciation on intangible assets and financial assets. Thereof € 10.7 million before and € 6.4 mil- lion after taxes are associated with earlier so-called “early entry” launches2)_{. In the past, STADA made significant} payments to initial suppliers to acquire the approvals for such “early entry” launches each time, thus respectively creating intangible assets. Since, under the changed German market conditions (see ”Development of Segments – Regional Development – Germany”), the originally expected market success, which was also the basis for the amount paid to the initial supplier at the time, will no longer, with reasonable assurance, be sustainable in the future, the associated intangible assets had to be adapted in the scope of impairment tests.

• One-time costs of acquisitions planned or made:

in fiscal year 2007 a burden in the amount of € 6.2 million before taxes or € 3.9 million after taxes was based on one-time costs of acquisitions planned or made. Thereof, € 3.3 million before taxes or € 2.2 million after taxes incurred in the context of the acquisition of the Forum Bioscience group, from the separation of the two divisions Britannia and Forum Products as well as the subsequent integration of Britannia into the STADA Group (see “Business and General Conditions – Acquisitions and Disposals“ and ”Development of Segments – Regional Development – United Kingdom”); a burden in the amount of € 2.9 million before taxes or € 1.7 million after taxes resulted from costs in connection with planned, but not realized acquisition projects.

1) In addition, sales-related royalty payments were agreed upon until patent expiration. 2) Related to Group sales.

3) In accordance with IAS 33.10, treasury shares held are not considered in the earnings per share (EPS) calculation. Calculation of earnings per share is thereby based on an average of 58,315,643 outstanding shares as of December 31, 2007 (corresponding number of outstanding shares as of December 31, 2006: 53,983,327).

4) In accordance with IAS 33.31. • Book profits from disposals:

a relief in the total amount of approx. € 5.8 million before taxes or approx. € 5.0 million after taxes resulted from book profits from disposals at the Serbian subsidiary Hemofarm, from the sale of the companies Multivita d.o.o. and Symbiofarm d.o.o. as well as at the Italian subsidiary Crinos, from the sale of the two branded products Megestil®_{und Cordiax}®_{(see ”Business and General Conditions – Acquisitions and Disposals”).}

• Additional earnings and costs with one-time character or related to other accounting periods:

a relief in the net amount of € 2.3 million before taxes or approx. € 1.3 million after taxes resulted from additional earnings and costs with one-time character or related to other accounting periods. Due to a compensation pay- ment for violating a patent for a specific dosage form held by STADA one-time earnings in the amount of € 9.0 million before taxes or € 5.4 million after taxes were incurred in fiscal year 2007.1)_{In addition, a relief outside of} the accounting period in the amount of € 0.2 million before or € 0.1 million after taxes resulted from a change relating to the fiscal years 2005 and 2006, in the value added tax treatment of discounts granted in favor of health insurance organizations in the scope of contractual agreements. This relief is offset by one-time costs in the amount of € 3.9 million before or approx. € 2.4 million after taxes due to a provision for a packaging error of a branded product caused by a pre-supplier. The costs that have been incurred so far due to this and are still expected for the future probably cannot be paid by the pre-supplier in the amount of the current provision. In addition, one-time costs in the amount of € 3.0 million before taxes or € 1.8 million after taxes were incurred in fiscal year 2007 for projects for the optimization of Group logistics, particularly also in connection with the intro- duction of SAP software for central Group structures, which was introduced on July 1, 2007.

In the table “Development of the STADA Group’s key earnings figures”, the key earnings figures and margins of fiscal year 2007 as well as those of the previous year are presented both unadjusted and adjusted for one-time special effects. Also in the adjusted form, all key earnings figures and margins clearly show a positive trend. Development of the STADA Group’s key earnings figures

Adjusted for one-time special effects

in € million 2007 2006 ± % 2007 2006 ± % Margin2)_{2007 Margin}2)₂₀₀₆

Operating profit 215.5 180.5 +19% 248.8 186.4 +33% 15.8% 15.0%

EBITDA 289.5 232.6 +24% 315.7 233.0 +35% 20.1% 18.7%

EBIT 187.8 168.7 +11% 249.2 186.7 +34% 15.9% 15.0%

EBT 150.7 145.2 +4% 212.1 163.2 +30% 13.5% 13.1%

Net income 105.1 91.8 +14% 146.8 102.1 +44% 9.3% 8.2%

Earnings per share in €3) _{1.80 1.70 +6% 2.52 1.89 +33%}

Diluted earnings per share in €4) _{1.74 1.62 +7% 2.42 1.81 +34%}