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{\pard\sa900\fs50\f0\i Media Release\par}
{\pard\f0\li0\ri0\sa360\sl360\fs22 Basel, 30 January 2008\line \line {\b Annual 
Media Conference} \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 The Annual Media Conference will be 
held at Roche in Basel starting at 10:00 CET.\par}{\pard\f0\li440\ri0\sl360\fs22 - Media 
Release\par}{\pard\f0\li440\ri0\sl360\fs22 - Annual Report 2007\par}{\pard\f0\li440\ri0\sl360\fs22 - Audio 
Webcast of the conference\par}{\pard\f0\li440\ri0\sl360\fs22 - Pictures (http://www.roche.com/pages/downloads/photosel/080130/)\par}\line {\pard\f0\li0\ri0\sa360\sl360\fs22 \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 {\b Speeches 
English} \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 (The 
spoken German text is definitive)\par}{\pard\f0\li440\ri0\sl360\fs22 - Franz 
B. Humer\line Chairman of the Board of Directors and CEO \u160?\u160?Slides ( http://www.roche.com/bmk08hsle.pdf)\par}{\pard\f0\li440\ri0\sl360\fs22 - Severin 
Schwan\line CEO Roche Diagnostics \u160?\u160?Slides only ( http://www.roche.com/bmk08schsle.pdf)\par}{\pard\f0\li440\ri0\sl360\fs22 - William 
M. Burns \line CEO Roche Pharmaceuticals \u160?\u160?Slides 
only ( http://www.roche.com/bmk08bsle.pdf)\par}{\pard\f0\li440\ri0\sl360\fs22 - Erich Hunziker\line Chief 
Financial Officer \u160?\u160?Slides ( http://www.roche.com/bmk08ehsle.pdf)\par}\line {\pard\f0\li0\ri0\sa360\sl360\fs22 \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 {\b Franz 
B. Humer} \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 Good morning Ladies and Gentlemen. Welcome 
to Roche\u8217?s 2008 full-year results media conference. \line \line The Roche Group 
achieved outstanding results again in 2007, with sales and profitability reaching new record levels.\line \line {\b Industry-leading 
growth continued in 2007\line } For the seventh straight year, Group sales increased in 
double-digits, to a record 46 billion Swiss francs. The increase of more than 4 billion francs was entirely 
due to organic growth.\line \line Clearly, the Pharmaceuticals Division was the 
main growth driver. Its sales once again grew approximately twice as fast as the market. The Diagnostics 
Division maintained its position as the global in-vitro diagnostics market leader, with sales increasing 
slightly faster than the market average.\line \line While the first half of the 
year was extremely good for the Pharma division, the second half proved more challenging, as orders 
for pandemic stockpiling of Tamiflu declined significantly \u8212? as we expected and predicted. If we exclude 
pandemic sales of Tamiflu to governments and corporations, the underlying growth continued at double 
digit levels, with the fourth quarter the strongest quarter of the year for sales growth at Roche Pharmaceuticals.\line \line Most 
government and corporate stockpiling orders have now been filled, and we anticipate a further significant 
decrease in pandemic Tamiflu sales in 2008. Production levels have been tailored to current demand but 
can be increased rapidly should the need arise.\line \line {\b Net income 
up 25%, Core EPS growth twice sales growth} \line The combination of higher revenues and 
a variety of programmes to increase productivity had a very positive effect on profitability. Although 
R&D expenses rose faster than sales, by 16% in local currencies to 8.4 billion Swiss francs \u8212? due 
among other things to continued investment in our strong development pipeline \u8212? overall cost growth 
was below sales growth.\line \line The result, as you see here, was a 22% local-currency 
increase in operating profit to 14.5 billion francs and the Group\u8217?s highest-ever margin increase \u8212? 3.5 
percentage points to 31.4%. This very good operating performance \u8212? which compares very well with that 
of our competitors \u8212? combined with a lower effective tax rate, \u160?boosted net income by 25% to well 
over 11 billion francs. This record net income includes no exceptional items. \line \line The 
Group\u8217?s balance sheet was strengthened further. The equity ratio increased from 63% to 68%; over 80% 
of total assets are financed long term.\line \line Core EPS grew by 20% to 11.85 
Swiss francs per share and non-voting equity security \u8212? double the increase in Group sales. \u160?\line \line {\b Delivering 
on our commitments} \line The guidance we issued at the beginning of 2007 indicated continued 
above-market sales growth in Pharmaceuticals and Diagnostics, double-digit growth for Pharma and the 
Group and, as a target, core EPS growth above sales growth. As in previous years, we again delivered 
on all of these commitments. \line \line {\b Committed to continuously 
raising the payout ratio} \line In view of these excellent results, the Board of Directors 
will propose another substantial dividend increase of 35% \u8212? to 4.60 Swiss francs per share and non-voting 
equity security \u8212? at our Annual General Meeting on 4 March. If approved by our shareholders, this will 
result in a total dividend payout of approximately 4 billion Swiss francs, compared with 3 billion last 
year. We are thus continuing to progressively raise not only the dividend but also the payout ratio.\line \line {\b Board 
members\u8217? terms, executive compensation} \line Let me briefly mention some of the other 
items on the agenda of the forthcoming AGM, \line \line As previously, the annual 
report includes a separate but integrated Remuneration Report, which goes beyond the required disclosure 
and gives a detailed breakdown of the remuneration of the Board of Directors and Executive Committee. 
In accordance with the Swiss Code of Corporate Governance, the Board has decided to ask for shareholder 
approval of the Remuneration Report as an integral part of the Annual Report\line \line At 
the forthcoming AGM the Board will also propose that the term of office for board members be reduced 
from the current period of 4 years to 3.\line \line {\b Targeted strategic 
acquisitions} \line In 2007 we continued to invest heavily in external innovation. Over 
40 new licensing agreements across Pharma and Diagnostics enhance our portfolio and give us access to 
new products and technologies.\line \line Among the most significant of these were 
agreements with Alnylam, for access to their Nobel prize winning RNAi therapeutics technology; with 
Transgene to develop therapeutic vaccines for cervical cancer and other diseases caused by HPV; and 
with Toyama to jointly develop a novel rheumatoid arthritis drug\line \line We also 
stepped up our M&A activity: Therapeutic Human Polyclonals strengthens our therapeutic antibody 
research in Pharmaceuticals. And Bioveris, 454 Life Sciences and NimbleGen bring critical new technologies 
to our Diagnostics Division, including ultra-fast gene sequencing and microarrays, making us a leader 
in this exciting market segment.\line \line {\b Ventana \u8211? investing in 
our future} \line And, very importantly, a little over a week ago we signed the definitive 
merger agreement with Ventana Medical Systems. This acquisition will enable us to move into the fast-growing 
market for tissue-based diagnostics and strengthen our capabilities for developing companion diagnostic 
tests. Ventana is a significant milestone in our efforts to develop personalised healthcare solutions, 
including more cost-efficient, differentiated and targeted medicines. I am very pleased that our well-founded 
persistence has led to a friendly merger.\line \line These acquisitions and alliances 
open the way to developing better diagnostic tests and treatments for important unmet medical needs. 
They also complement ongoing in-house initiatives to further improve speed, productivity and quality 
in our pharmaceutical R&D. The most important of these is the new Roche Pharmaceuticals R&D 
management model we implemented during the course of 2007. It streamlines decision-making and links 
discovery, translational medicine, clinical development, diagnostic input and marketing in dedicated 
leadership teams for each of our five Disease Biology Areas.\line \line {\b Looking 
to the future from a position of strength} \line While the healthcare industry faces significant 
challenges in the years ahead, Roche is in a quite different position to its competitors. \par}{\pard\f0\li440\ri0\sl360\fs22 - We 
have a global network of alliances around the world and a unique relationship with Genentech and Chugai, 
of which we are the majority shareholder.\par}{\pard\f0\li440\ri0\sl360\fs22 - We have a portfolio 
of products on the market with significant additional growth potential through expansion into new indications 
and earlier use.\par}{\pard\f0\li440\ri0\sl360\fs22 - With the exception of CellCept, which will 
lose patent protection in the United States in 2009, we are not facing patent expiries on any of our 
major drugs within the next few years.\par}{\pard\f0\li440\ri0\sl360\fs22 - On the contrary \u8212? 
we are currently launching Mircera outside the US, expect approval for Actemra in rheumatoid arthritis 
towards the end of 2008 and will be entering new therapy areas such as diabetes and other metabolic 
disorders in the coming years.\par}{\pard\f0\li440\ri0\sl360\fs22 - We are uniquely positioned 
to lead the future of healthcare through our combination of Diagnostics and Pharma, as well as through 
our pioneering role in personalised healthcare.\par}\line {\pard\f0\li0\ri0\sa360\sl360\fs22 Our 
results 
over the past few years speak for themselves. We can tackle the future from a position of strength.\line \line {\b Our 
objectives for 2008} \line For 2008 we expect to achieve a high single-digit increase 
in Group 
sales in local currencies, with both Roche divisions continuing to outperform their respective markets. 
This excludes pandemic stockpiling sales of Tamiflu to governments and corporations. Most of these orders 
have been filled over the last several years. We therefore anticipate a decrease in pandemic Tamiflu 
sales in 2008 of around 1.7 billion Swiss francs.\line \line To realise the full 
potential of our strong development portfolio, we plan to significantly increase research and development 
spending again in 2008. The main focus will be on late-stage clinical testing of promising compounds 
such as pertuzumab (for breast cancer), ocrelizumab (for autoimmune disorders), the GLP-1 analogue (for 
type 2 diabetes) and the CETP inhibitor (in the cardiovascular area), along with programmes designed 
to expand the use of our leading anticancer medicines into additional indications.\line \line We 
anticipate continued strong growth in 2009 and 2010 for both divisions, driven by the launch of Actemra, 
MabThera/Rituxan for rheumatoid arthritis, Mircera, and additional new indications for Avastin and other 
cancer medicines. Moreover, we anticipate pivotal clinical trial data on the use of Avastin in early-stage 
cancer (adjuvant therapy) by the end of 2009. \line \line Despite the anticipated 
decrease in Tamiflu sales and significantly higher R&D spending, we are aiming for 2008 Core EPS 
\u8212? at constant exchange rates \u8212? to remain at least at the record level achieved in 2007. In addition, 
we expect that our high cash generation capacity will enable us to continue raising our dividend payout 
ratio over the next three years.\line \line In closing, I would like to thank you 
for the constructive dialogue we have had over the years, which I have always appreciated. I look forward 
to continuing this interaction with you in my role as active chairman.\par}{\pard\f0\li0\ri0\sa360\sl360\fs22 \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 {\b Erich 
Hunziker} \par}{\pard\f0\li0\ri0\sa360\sl360\fs22 Good morning Ladies and Gentlemen\line \line {\b 2007: 
Strong operating and financial performance} \line Building on our excellent operating 
performance, Roche Finance made important contributions to the further strengthening of the Group: in 
a rather challenging environment we kept the net financial income at an attractive level, we increased 
the net cash and we have strengthened the balance sheet. As a result the Roche Group has further increased 
its strategic flexibility.\line We also continued our proactive disclosure beyond financial 
reporting standards.\line \line {\b Group results 2007: Highest ever increase 
in operating margin directly translated into net income} \line Due to the excellent operating 
results of our core businesses and the decrease of the Group tax rate, net income increased by 2.3 billion 
Swiss francs or 25%. This is the highest net income Roche ever achieved.\line \line {\b Group 
operating performance 2007: Operating profit up 22% due to cost control measures} \line The 
clear strategic focus on our core businesses Pharma and Diagnostics is showing attractive results at 
operating level. While our innovative products have gained market share, we have kept our cost basis 
under control and consequently most operating expenses are increasing at a rate below sales growth. 
Due to continuous productivity improvements at our production sites we were able to keep the increase 
in cost of sales at an attractive level, despite higher royalty expenses for our successful Pharma products 
like Mabthera/Rituxan, Herceptin and Tarceva. The increase in R&D expenses underlines our strong 
commitment to innovation and our readiness to invest into our future. This behavior pattern differs 
quite significantly from most of our peers who are focusing on short-term cost cutting measures. The 
increase in R+D expenses was almost compensated by higher out-licensing income \u8211? which is a result of 
Roche\u8217?s innovation power in the past.\line The increase of General and Administration cost 
is significantly impacted by one-time items like higher restructuring and legal expenses.\line Overall 
the growth rate of the operating result is considerably stronger than sales growth.\line \line {\b Net 
Financial income 2007: Stable contribution at very low risk} \line In a challenging environment 
we were able to keep the level of the net financial income at an attractive level. With regard to the 
intensive public discussions it may be of interest that due to a very clear risk policy and an efficient 
risk management Roche was not affected by the sub-prime crisis in a material manner: on the background 
of managed assets above 20 billion Swiss francs the impairment of 68 million seem to be an acceptable 
result.\line The foreign exchange losses are based on the increased business success in Eastern 
European and Latin American countries: the excellent results are achieved in currencies which show big 
fluctuations and can only be hedged with high cost.\line \line {\b Group 
tax rate 2007} \line A downside of our unique hub and spoke concept lies in the fact that 
Genentech and Chugai have to pay quite high taxes in their respective environments. We were nevertheless 
able to significantly decrease the Roche Group tax rate. Although the current result is also driven 
by one-time effects such as the reduction of corporate tax rates in Germany or Italy, the Roche\u8217?s tax 
rate excluding Genentech and Chugai is expected to be lower in the future than it was in the past. This 
is also the result of a multi-year project to optimize our tax structure.\line \line {\b Core 
EPS continued to rise rapidly} \line This important yardstick shows the continuing improvement 
of the Roche performance.\line \line {\b Balance sheet 2007: Very solid 
with 68% equity ratio and 82% long-term financing} \line With this strengthened balance 
sheet Roche has significantly increased its strategic flexibility to strengthen the core businesses 
Pharma and Diagnostics.\line \line {\b Net cash 2007: Increase by CHF 
1.2 billion} \line Based mainly on the strong operating result, the net cash position 
of the Group was further strengthened.\line \line {\b Committed to continuously 
increase pay-out ratio over the next 3 years} \line In the last 21 years Roche has continuously 
increased its dividend. Based on the excellent result, the Board proposes to the Annual Shareholder 
Meeting of March 4, 2008 that we increase the dividend by 35% to 4.60 Swiss francs.\line \line {\b Our 
objectives for 2008} \line Let me close with our outlook for 2008. Barring unforeseen 
developments we expect: \par}{\pard\f0\li440\ri0\sl360\fs22 - High single digit local 
currency sales increase for the Group excluding government and corporate stockpiling orders of Tamiflu 
for pandemic use\par}{\pard\f0\li440\ri0\sl360\fs22 - Above-market sales growth in both divisions (Pharma 
excluding Tamiflu pandemic sales)\par}{\pard\f0\li440\ri0\sl360\fs22 - Core earnings per share at least 
at record 2007 level despite significant increase in R&D investment and considerably lower Tamiflu 
pandemic sales\par}{\pard\f0\li440\ri0\sl360\fs22 - Continuous increase in dividend pay-out over the 
next 3 years\par}\line 
{\pard \par}
{\pard\sb180\f1\fs22 {\b F. Hoffmann-La Roche Ltd}\line 4070 Basel\line Switzerland \par}
{\pard\sb180\f1\fs22 Corporate Communications\line Roche Group Media Relations \par}
{\pard\sb180\f1\fs22 Tel. +41 61 688 88 88\line Fax +41 61 688 27 75\line www.roche.com \par}
}