Ingelheim/Germany, 27 March 2007 - Boehringer Ingelheim maintained its successful course once again in 2006, growing faster than the pharmaceutical market for the seventh successive year. As the company reported at its Annual Press Conference in Ingelheim, net sales grew by 11% to 10.6 billion euros (2005: 9.5 billion euros). Excluding currency effects, growth amounted to about 12%. Operating income, comparable to EBIT, also improved by 11% to more than 2.1 billion euros (2005: 1.9 billion euros). The number of employees worldwide rose by some 1,000 to more than 38,400 (+ 3%). For 2007, Boehringer Ingelheim expects high single-figure growth of net sales slightly above the market.

Dr Alessandro Banchi, Chairman of the Board of Managing Directors of Boehringer Ingelheim and responsible for the Corporate Board Division Pharma Marketing and Sales, said that 2006 was "again an excellent year" for the company. In spite of generic competition for Mobic ^®, Boehringer Ingelheim’s high turnover anti-rheumatic, in the USA and for Mobic ^® and Alna ^®/Pradif ^® in Europe, the company grew faster than the market average, which, according to analyses by the healthcare information provider IMS, increased by 6%.

With a market share of almost 2%, Boehringer Ingelheim ranks 15th among the international pharmaceutical companies.

The positive sales development was also reflected in the company`s results. Operating margin (operating income as a percentage of sales) matched the excellent year-ago figure of 20.2%.

Income after tax was a good 1.7 billion euros, corresponding to anincrease of 14% over the previous year. As Professor Marbod Muff, responsible for the Corporate Board Divisions Finance and Human Resources, explained, the result only shows part of the overall taxburden, as the taxes do not include the shareholders` income taxfalling due in Germany that, in accordance with accounting regulations, has to be shown as "capital withdrawn".

"Proud that our drugs help patients"
The growth drivers in 2006 were again the company`s branded prescription medicines. In addition to the top product Spiriva <sup>®</sup> (tiotropium bromide), the worldwide leading medication for the treatment of chronic obstructive pulmonary disease (COPD), sales of which rose by 45% in 2006 to almost 1.4 billion euros, both Micardis <sup>®</sup>(telmisartan), an angiotensin-II-receptor blocker for the treatment of essential hypertension, which grew 34% to 967 million euros, and Alna <sup>®</sup>/Flomax <sup>®</sup>/Pradif <sup>®</sup> (tamsulosin), for the treatment of benign prostatic hyperplasia, up 28% at 922 million euros, also showed healthy development. All three products are so-called blockbusters, that is drugs whose annual sale stop one billion US dollars. Boehringer Ingelheim sees the healthy development of its products as confirmation of the company`s objective of making innovative drugs available for patients.

"We are very proud that our medications are accepted by patients and help them to treat their illnesses effectively and to lead a better life," commented Dr Banchi. The acceptance of Boehringer Ingelheim products by both physicians and patients is the basis of the company`s success.

"In a good position"
Boehringer Ingelheim is a research-driven pharmaceutical company that focuses on Prescription Medicines which account for almost 80% of net sales. Here, net sales rose by almost 15% (currency adjusted by almost 16%) to 8.3 billion euros in 2006. The Consumer Health Care (CHC) business improved by 1% to almost 1.1 billion euros, an increase of almost 3% excluding currency effects. Animal Health business grew by around 4% to 374 million euros. Here business acquisitions and divestments played a role be sides currency effects. Discounting all these extraordinary effects, the Animal Health business rose by 8%.

The Industrial Customer business (Biopharmaceuticals, Pharmaceuticals Production and Pharma Chemicals) declined by almost 5% to 809 million euros (currency adjusted -4%), mainly due to extraordinary effects in the Biopharmaceuticals segment, which, having posted exceptional growth in 2005, fell back in 2006 despite an excellent order book.

Once again last year, the Americas was the company’s region with the highest sales. It generated net sales totalling 5.4 billion euros

(2005: 4.6 billion euros), equivalent to over 50% of global sales. The USA alone contributed 4.5 billion euros, with strong growth of almost 20%. With 3.3 billion euros, Europe achieved almost 6% growth.

Business in Germany stagnated at about 820 million euros, due to generic competition for Alna ^® and pharma-political impacts, while business in Asia, Australasia, Africa (AAA) remained essentially on the year-ago level, primarily due to currency effects. However, in constant currency terms, Japan, the country posting the highest sales in the AAA region, grew by 15% in the Prescription Medicines segment. In 2006, for the second year running, Boehringer Ingelheim Japan was the international company with the highest growth rate in this segment.

Prof. Muff painted a very positive picture of Boehringer Ingelheim`s situation. "We consider ourselves to be in a very good position, both in terms of being able to secure our independence and being able to finance products from other companies to add to our product pipeline and to complement our own development," remarked Prof. Muff. Here ferred to the sound liquidity of almost 4 billion euros and cash flow that was 12% higher than 2005 at 2.3 billion euros. Investments infixed assets total led almost 600 million euros, also 12% up on the previous year.

The employees – the most important prerequisite for future success
Dr Banchi and Prof. Muff both emphasized on how highly the company values its employees. Not only are they the source of success, but also the most important requirement for the future development of the company. Boehringer Ingelheim is delighted about the leading positions it enjoys in terms of employee satisfaction, according to independent surveys in many countries. Over the last 10 years, the company has taken on an average of 5% new employees per year. Since 2002 alone, more than 6,600 new employees (+21%) have joined the company worldwide.

Dr Banchi drew up a positive picture for the future. The product pipeline has improved further and includes a number of candidates with prospects of success in all therapeutic areas from the company’s own research, including oncology. Efforts are also being made to conclude promising co-operations or license agreements.

In 2006, almost 1.6 billion euros were invested in Research, Development and Medicine, 16% more than in the previous year. Research expenditure in Prescription Medicines accounted for about 18% of sales in this business area.

New product launches and approvals are pending. In 2007, the Respimat ^®Soft Mist™ Inhaler, a propellant-free metered dose inhaler that generates a fine mist, is expected to be launched with the top productSpiriva ^® in the first markets. Registration has been filed in Europe for dabigatran, for the prevention of thromboembolic events. Four important, large-scale clinical studies on dabigatran, Spiriva ^®, Micardis ^® and Aggrenox ^®, including about 90.000 patients, are nearing completion, with the first results expected in 2008. Dr Banchi: "We are very optimistic, as theprospects remain encouraging.