Merck KGaA to Explore Divestiture of Its Generics Business Darmstadt, Germany, January 5, 2007 â€“ Merck KGaA confirmed, that it is evaluating the divestiture of its Generics division (Merck Generics) as one strategic option. Merck is not engaged in initial discussions with any potential buyers. Irrespective of this strategic evaluation Merck still plans to make a capital increase of EUR 2 billion to EUR 2.5 billion within the first quarter of 2007. Merck Generics has sales in more than 90 countries and is the number 3 ranked generics business in the world. In 2005 Merck Generics reported sales of EUR 1.8 billion and an operating result of EUR 238 million. The division employs approximately 5,000 people worldwide. â€œMerck Generics has a strong business with excellent leadership and good growth prospects for the future. However it will need continued investment to fully realize its potential and strengthen its market presence,â€ said Dr. Michael Roemer, Chairman of the Executive Board of Merck KGaA. â€œIn light of the far-reaching changes occurring in the market we are considering as an option the divestiture of Merck Generics to a qualified buyer.â€ Important Information This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States. The shares referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the â€œSecurities Actâ€), and may not be offered or sold in the United States absent registration under the Securities Act or an available exemption from such registration. The issuer of the shares does not intend to register any portion of the offering in the United States or to conduct any public offering of the shares in the United States. All Merck Press Releases are distributed by e-mail at the same time they become available on the Merck Website. Please go to http://www.subscribe.merck.de to register online, change your selection or discontinue this service. Merck is a global pharmaceutical and chemical enterprise with sales of â‚¬ 5.9 billion in 2005, a history that began in 1668, and a future shaped by 30,158 employees in 56 countries. Its success is characterized by innovations from entrepreneurial employees. Merck's operating activities come under the umbrella of Merck KGaA, in which the Merck family holds a 73 % interest and free shareholders own the remaining 27 %. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been an independent company ever since.