Third quarter 2009: Order intake and net sales increase

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* H1N1 virus boosts positive development
* Earnings in third quarter increase year-on-year
* Currency effects impact full year earnings
* Operating cash flow significantly up on prior year figure
* Turnaround program records its first successes

Lübeck - Drägerwerk AG & Co. KGaA was able to once again increase its
order intake in the third quarter of 2009. The company exceeded the
prior-year figure by 9.5 percent (net of currency effects), posting
order intake of EUR 481.7 million. "The markedly positive development
of order intake in the third quarter of 2009 gives us great
momentum," comments Stefan Dräger, Chairman of the Executive Board of
Drägerwerk Verwaltungs AG. This development was supported by
increased order intake volumes in connection with the H1N1 virus.
Net sales for Dräger Group were at EUR 454.4 million in the third
quarter (up 3.3 percent net of currency effects) and totaled EUR
1,348.3 million for the first nine months of 2009 (up 3.1 percent net
of currency effects).

Third quarter earnings up on prior year
In the third quarter of 2009, savings from the turnaround program
offset earnings impacts from exchange rates, deep diving projects,
shifts in the product mix and implementation costs. After taking
2008's non-recurring expenses of EUR 9.6 million into account, EBIT
was up EUR 2.3 million year-on-year.
However, the earnings improvements cannot yet balance out the
earnings decline from the first half of the year.

Net cash improves
In the third quarter 2009, operating cash flow recorded very positive
development compared to the prior year with net cash increasing by
almost EUR 50 million. Intensive working capital management was a
major driver behind this improvement: During the reporting period,
Dräger built up less inventories and was once again able to reduce
the level of receivables.

Turnaround program records its first results
The measures introduced up to now through the turnaround program took
pressure off earnings in the third quarter of 2009. Up to the end of
September, the company achieved savings of EUR 32.3 million, EUR 18.2
million of which came in the third quarter. This offset
implementation expenses of EUR 18.3 million, EUR 14.2 million of
which were recorded in the third quarter. Up to this point,
turnaround has focused on procurement, travel and telecommunications
costs, marketing and sales costs as well as logistics. Production is
also continuing its program PRIME (Production Improvement for
Excellence). This program allows employees to use their knowledge and
experience to enhance efficiency, cut costs, reduce through-put times
and space requirements as well as improve quality. At the same time,
Dräger is currently conducting a global review of its production
sites for efficiency and competitiveness.
The significantly improved order situation and net cash provided by
operating activities has allowed the company to reverse its plans to
cancel Christmas and holiday pay for 2009. Instead, Dräger is going
to use the period until the end of the year to talk to employee
representatives. The company is looking to agree on obligatory
measures aimed at cutting costs and making business more flexible in
an effort to improve earnings.

Outlook
The effects of the worldwide financial and economic crisis continue
to negatively impact business. For 2009, the Executive Board
anticipates that net sales will be slightly down and consolidated
EBIT considerably lower than in the prior year. Despite the lower
consolidated EBIT, the Executive Board is expecting net profit in the
black.

Key figures for the first nine months of 2009 (in EUR millions)

+---------------------------------------------------------------------+
| |Q3 2009|Q3 2008| Change| Q1-Q3| Q1-Q3| Change|
| | | | | 2009| 2008| |
|-------------------+-------+-------+--------+-------+-------+--------|
|Order intake | 481.7| 443.8| + 8.5 %|1,414.5|1,398.3| + 1.2 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Medical division | 323.0| 284.8|+ 13.4 %| 928.4| 907.8| + 2.3 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Safety division | 166.1| 166.0| + 0.1 %| 506.0| 509.2| - 0.6 %|
|-------------------+-------+-------+--------+-------+-------+--------|
| | | | | | | |
|-------------------+-------+-------+--------+-------+-------+--------|
|Net sales | 454.4| 443.9| + 2.4 %|1,348.3|1,307.4| + 3.1 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Medical division | 293.6| 284.5| + 3.2 %| 871.7| 835.7| + 4.3 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Safety division | 167.7| 166.1| + 1.0 %| 496.4| 490.5| + 1.2 %|
|-------------------+-------+-------+--------+-------+-------+--------|
| | | | | | | |
|-------------------+-------+-------+--------+-------+-------+--------|
|EBIT[1] before | | | | | | |
|non-recurring | | | | | | |
|expenses | 13.3| 20.6|- 35.4 %| 28.4| 79.5|- 64.3 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Medical division | 9.0| 12.4|- 27.4 %| 20.1| 48.4|- 58.5 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Safety division | 10.1| 14.3|- 29.4 %| 28.1| 43.8|- 35.8 %|
|-------------------+-------+-------+--------+-------+-------+--------|
| | | | | | | |
|-------------------+-------+-------+--------+-------+-------+--------|
|EBIT[1] | 13.3| 11.0|+ 20.9 %| 28.4| 58.6|- 51.5 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Medical division | 9.0| 5.7|+ 57.9 %| 20.1| 39.1|- 48.6 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|Safety division | 10.1| 13.4|- 24.6 %| 28.1| 37.3|- 24.7 %|
|-------------------+-------+-------+--------+-------+-------+--------|
| | | | | | | |
|-------------------+-------+-------+--------+-------+-------+--------|
|EBIT margin | 2.9 %| 4.6 %| | 2.1 %| 6.1 %| |
|-------------------+-------+-------+--------+-------+-------+--------|
| | | | + 105.6| | | |
|Net profit | 3.7| 1.8| %| 5.3| 22.5|- 76.4 %|
|-------------------+-------+-------+--------+-------+-------+--------|
|EPS[2] | 0.20| 0.05| | 0.21| 1.26| |
+---------------------------------------------------------------------+

[1] EBIT = Earnings before net interest result and income taxes
[2] EPS = Earnings per preferred share in euros

Disclaimer
This press release contains forward-looking statements regarding the
future development of the Dräger Group. These forward-looking
statements are based on the current expectations, presumptions, and
forecasts of the Executive Board as well as the information available
to it to date and have been prepared to the best of its knowledge and
belief. No guarantee or liability for the occurrence of the future
developments and results specified can be assumed in respect of such
forward-looking statements. Rather, the future developments and
results are dependent on a number of factors. They entail risks and
uncertainties beyond our control and are based on assumptions which
could prove to be incorrect. Notwithstanding any legal requirements
to adjust forecasts, we assume no obligation to update the
forward-looking statements contained in this report. You will find
all key financial dates on our website at www.draeger.com under
Investor Relations/Financial Calendar.

Contact

Corporate Communications:
Burkard Dillig
Tel. +49 451 882-2185
burkard.dillig@draeger.com

Investor Relations:
Vanina Herbst
Tel. +49 451 882-2685
vanina.herbst@draeger.com

Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55
23542 Lübeck, Deutschland
www.draeger.com

The press release can be downloaded from the following link:

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Drägerwerk AG & Co. KGaA
Moislinger Allee 53-55 Lübeck Germany

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