Schering AG Raises Outlook After Strong First Half Year

BERLIN, Germany, July 25 /PRNewswire/ -- The Schering AG Group (FSE: SCH, NYSE: SHR), Germany, expanded its business in the first six months of 2006 significantly and continued to increase its profitability. Net sales increased by 11% to EUR 2,824 million.

Schering AG's top-selling products, Betaferon and Yasmin, exhibited high dynamic growth. Net sales of the multiple sclerosis drug, Betaferon, increased in the double-digit range by 17% and, in total, amounted to EUR 481 million in the first half year of 2006. The oral contraceptive, Yasmin, significantly contributed to the overall strong growth of Schering AG's largest business area, Gynecology&Andrology, with an increase of 33% to EUR 351 million*. In this business area alone, net sales increased by 17%. Yasmin is the most successful oral contraceptive worldwide. Net sales of the intrauterine delivery system, Mirena(R), developed above-average with a rise of 26%.

Net sales of the oncology business area also increased in the double-digit range by 14% in the first six months of 2006. Net sales of Fludara(R) and Campath(R) developed very positively with respective increases of above 20%. Net sales of Bonefos(R) also increased in the double-digit range with a rise of 20%.

Schering AG clearly increased net sales in its major regional markets. In Europe, net sales increased by 9%. Net sales in the United States Region (+14%), Latin America/Canada Region (+24%) and Asia/Pacific Region (+20%) increased in the double-digit range, respectively.

"We are pleased with the positive development of our business in the first six months of 2006. The good results prove the market success of our products as well as the extraordinary commitment of our employees," said Dr. Hubertus Erlen, Chairman of the Executive Board of Schering AG. "Our competitive strength in specialized markets represents a solid foundation for the future success of Bayer Schering Pharma."

Adjusted for one-time effects relating to company divestitures and take-over related expenses, the operating profit increased by 20% to EUR 559 million. This corresponds to an operating margin of approximately 20%. Including these one-time effects, the operating profit decreased to EUR 410 million, 12% below the previous year's figure. Net profit declined by 6% to EUR 301 million. Earnings per share also decreased by 6% to EUR 1.58.

Outlook raised

For the fiscal year 2006, Schering AG Group expects an organic net sales growth in the high single-digit range. The Group expects that the top-selling product, Betaferon(R), will grow in the double-digit range currency adjusted. For Yasmin(R), the Schering AG Group expects a continued, strong double-digit net sales growth.

Based on a continued positive business development and positive effects resulting from the ongoing program to increase efficiency (FOCUS), Schering AG expects that the operating margin for 2006 will be in the range of 18.5 to 19 percent (excluding effects from acquisitions or divestitures of business activities as well as takeover-related expenses).

* includes all net sales of the drospirenone product family (Yasmin, YAZ(R), Yasminelle(R))

Unless otherwise indicated, all narrative refers to currency adjusted sales growth rates.

Schering AG is a research-based pharmaceutical company. Its activities are focused on four business areas: Gynecology&Andrology, Oncology, Diagnostic Imaging as well as Specialized Therapeutics for disabling diseases. As a global player with innovative products Schering AG aims for leading positions in specialized markets worldwide. With in-house R&D and supported by an excellent global network of external partners, Schering AG is securing a promising product pipeline. Using new ideas, Schering AG aims to make a recognized contribution to medical progress and strives to improve the quality of life: making medicine work

This press release has been published by Corporate Communication of Schering AG, Berlin, Germany.

Your contacts at Corporate Communication:

Media Relations: Oliver Renner , T: +49-30-468-124-31, oliver.renner@schering.de

Media Relations: Verena von Bassewitz, T: +49-30-468-19-22-06, verena.vonbassewitz@schering.de

Investor Relations: Peter Vogt, T: +49-30-468-128-38, peter.vogt@schering.de

Investor Relations: Dr. Jost Reinhard, T: +49-30-468-150-62, jost.reinhard@schering.de

Find additional information at: www.schering.de/eng

Certain statements in this press release that are neither reported financial results nor other historical information are forward-looking statements, including but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and Schering AG's plans and objectives to differ materially from those expressed or implied in the forward-looking statements. Certain factors that may cause such differences are discussed in our Form 20-F and Form 6-K reports filed with the U.S. Securities and Exchange Commission. Schering AG undertakes no obligation to update publicly or revise any of these forward-looking statements, whether to reflect new information or future events or circumstances or otherwise.