Integration of Genentech progressing rapidly; full-year outlook raised

Roche Group: strong sales and operating profit growth

• Group sales up 2 billion to 24 billion Swiss francs, an increase of 10% in local currencies (9% in Swiss francs); both divisions grow significantly faster than their respective markets.

• Genentech integration: Research and Early Development at Genentech continue seamlessly under the existing management team, reporting directly to the Group CEO. Consolidation of manufacturing and administration yields productivity gains; synergy target increased to 1 billion Swiss francs annually; total one-time integration costs of approximately 3 billion Swiss francs.

• Operating profit (before exceptional items) up 20% to 8 billion Swiss francs, growing faster than sales.

• Net income down 29% in Swiss francs to 4.1 billion Swiss francs due to exceptional items related to the Genentech transaction; excluding exceptional items, net income attributable to Roche shareholders up 11% in Swiss francs.

• Core Earnings per Share up 20% in local currencies and 10% in Swiss francs.