Schering AG Interim Report: First Quarter 2001; The First Quarter 2001 at a Glance

* Sales up 11%

* Net income up 19%

* Successful start for Yasmin(R)

* Approval for Climara(R) 25, Fludara(R) Oral and Resovist(R)



Apr 25, 2001, 01:00 ET from Schering Group

    BERLIN, April 25 /PRNewswire/ -- This Interim Report for the
 Schering Group (NYSE:   SHR; FSE: SCH) comprises the Consolidated Income
 Statements as well as condensed versions of the Consolidated Balance Sheets
 and Consolidated Cash Flow Statements. It also provides a regional breakdown
 of sales and results.
     Major earnings indicators are presented on a quarterly basis.  In the
 preparation of Interim Reports, we apply the same valuation and accounting
 policies as in the preparation of our Annual Financial Statements. Translation
 of the figures from companies outside the European Monetary Union is performed
 in accordance with the concept of functional currency.  The closing rate
 method is used for all such companies.
     Since January 1, 2001, we have applied the International Accounting
 Standard IAS 39. This standard requires securities to be valued at market
 value.  The adoption of this standard had no impact on net income as
 unrealized gains and losses are excluded from earnings and reported as a
 separate component of equity.  The adoption of the International Accounting
 Standard IAS 40 since January 1, 2001, did not change our previous valuation
 and accounting policies as we opted for the cost model; i.e., we continue to
 carry investment property at its cost less any accumulated depreciation and
 any accumulated impairment losses.
     This Interim Report complies with International Accounting Standard IAS
 34. The Report has not been audited.
 
     Good Start to 2001
     In the first quarter 2001, net sales of the Schering Group rose 11%
 compared to last year's period to EUR1,157m. The companies acquired in 2000,
 which are now completely integrated into the Schering Group, contributed
 EUR60m to sales growth.
     This growth, adjusted for acquisitions, was based almost entirely on
 increased volumes; currency and price effects had no significant influence.
     The Regions Europe, Japan, and Latin America/Canada showed a positive
 increase in sales by 14% each. The slight drop in sales in Germany of 1% was
 more than offset by significant increases in net sales in other European
 countries. In many countries in Central and Eastern Europe, we achieved a
 sales growth of over 50%.
     In our United States Region, the decline in sales of Betapace(R) by 68% to
 EUR17m, caused by the loss of market exclusivity last year, was
 counterbalanced by increased sales of Climara(R), Fludara(R), and
 Betaferon(R).
     Betaferon(R), our treatment for different forms of multiple sclerosis, was
 once again the best-selling product. Compared to the first quarter of last
 year, sales of Betaferon(R) increased by 14%.
     Our modern contraceptive Yasmin(R), recently launched in Germany and other
 European markets, has shown an extremely positive increase in volume sales.
 
 
     Top-selling Products in the First Quarter 2001
 
                              Jan. - March     Change from 1-3/2000
                                  2001               currency
                               (in EURm)         total    adjusted
 
      1. Betaferon(R)*            160           + 14%       + 14%
      2. Iopamiron(R)              76           -  7%          0%
      3. Magnevist(R)              71           +  1%       +  1%
      4. Ultravist(R)              63              0%       +  2%
      5. Diane(R)                  55           + 14%       + 16%
      6. Fludara(R)                40           + 62%       + 57%
      7. Microgynon(R)             33           + 10%       + 15%
      8. Climara(R)                33           + 66%       + 60%
      9. Meliane(R)                30           + 29%       + 29%
     10. Femovan(R)                28           -  1%       +  2%
     11. Triquilar(R)              26           +  8%       + 10%
     12. Androcur(R)               25           +  1%       +  4%
     13. Mirena(R)                 22           + 29%       + 30%
     14. Betapace(R)               17           - 68%       - 70%
     15. Miranova(R)               12           + 72%       + 68%
 
     * Trade name in the USA and Canada: Betaseron(R)
 
 
     Fertility Control and Hormone Therapy: Outstanding Start for Yasmin(R)
     With an increase of 16% compared to last year's period, net sales in the
 Fertility Control and Hormone Therapy business area rose to EUR370m.
     Our modern contraceptive Yasmin(R), launched in Germany in November 2000,
 has already taken a market share of over 6%. In addition to providing reliable
 contraception, Yasmin(R) offers a greater sense of well-being thanks to its
 additional benefits: stable body weight, relief of complaints before and
 during menstruation, and positive effects on the skin.
     With the development of Drospirenon, the new active substance in
 Yasmin(R), Schering has set a milestone in the history of hormone research. In
 March 2001, Yasmin(R) was also launched in Scandinavia and Belgium.
     An above-average sales increase of 29% was achieved with both our low-dose
 oral contraceptive Meliane(R) as well as with Mirena(R). Mirena(R), our unique
 intrauterine hormone-delivery system, was launched in the United States at the
 beginning of 2001.
     Of our treatments for climacteric complaints, the hormone patch Climara(R)
 achieved an increase in sales of 66%; this growth is primarily due to an
 increase in sales in the United States. At the beginning of April, the
 American Food and Drug Administration (FDA), approved a new, expanded
 indication for Climara(R) 25, an extremely low-dose estrogen patch. With this
 approval, Climara(R) 25 is now also indicated for the treatment of vasomotor
 symptoms like hot flushes and night sweats. Previously, it was only approved
 for the long-term prevention of osteoporosis. As a result, Climara(R) 25 is
 now the only estradiol transdermal patch on the United States market to
 provide the lowest effective dosage of estrogen proven to treat menopausal
 symptoms and prevent osteoporosis. Climara(R) 25 was submitted for
 registration in Europe in March 2001.
 
     Net Sales by Region*                                  Schering AG Group
 
                               %of net sales           (in EURm)
                           1-3/2001   1-3/2000    1-3/2001  1-3/2000
 
     Europe*                  48%        47%         557       490
     United States            21%        22%         241       231
     Japan                    12%        12%         140       123
     Latin America/
      Canada                  10%        10%         120       105
     Asia                      5%         5%          51        49
     Other
      activities               4%         4%          48        46
 
     Total                   100%      100%        1,157     1,044
 
 
                                          Change from 1-3/2000
 
                              Total     Volume/Price  Currency   Acquisitions
 
     Europe*                  + 14%        + 10%       -  2%        +  6%
     United States            +  4%        -  4%       +  6%        +  2%
     Japan                    + 14%        -  3%       -  6%        + 23%
     Latin America/
      Canada                  + 14%        + 15%       -  1%          --
     Asia                     +  3%        +  9%       -  6%          --
     Other
      activities             +  4%         +  4%         --           --
 
     Total                   + 11%         +  6%        - 1%        +  6%
 
     * incl. Africa, Australia and New Zealand
 
 
     Therapeutics: Further Growth with Betaferon(R)
     Therapeutics recorded an increase in sales of 7% compared to the first
 quarter of last year. Betaferon(R), a biotech-based interferon for the
 treatment of multiple sclerosis, was the major contributor (+14%) to this
 growth. Betaferon(R) is still the only product which is approved for the
 treatment of both the relapsing remitting form as well as the secondary
 progressive form (SPMS) of multiple sclerosis.
     We are exceptionally pleased with the 62% increase in sales of Fludara(R).
 Fludara(R) has successfully become the standard for the second-line therapy of
 chronic lymphocytic leukemia, a malignant cancer of the lymphatic system. The
 new application form Fludara(R) Oral opens up additional treatment
 possibilities. It was approved in Great Britain in January 2001 and is
 currently going through the process of Mutual Recognition Approval in the
 remaining European countries.
 
     Diagnostics and Radiopharmaceuticals: World Market Leader in In-vivo
      Diagnostics
     Sales in Diagnostics and Radiopharmaceuticals rose 12% to EUR332m. Of
 this, EUR170m was from X-ray contrast media, EUR73m from products for magnetic
 resonance imaging (MRI), and EUR48m from contrast medium application
 technologies.  Radiopharmaceuticals achieved net sales of EUR39m. This is due
 largely to the acquisition of the French company CIS bio international in
 April 2000.
     In the fiercely-contested market of in-vivo diagnostics, we are still the
 world market leader. We have once again increased volume sales of both our
 non-ionic contrast medium Ultravist(R) and our MRI contrast agent Magnevist(R)
 despite price and currency effects.
     An additional reinforcement of our position in the diagnostics market is
 expected with Resovist(R), an effective, next-generation MRI contrast medium
 for the improved imaging and detection of liver tumors. In March, Resovist(R)
 received market approval in Sweden, the European Reference Member State for
 the Mutual Recognition Procedure. Based on this approval, marketing
 authorization for Resovist(R) is expected in all other EU countries by
 mid-2001.  In Switzerland, Resovist(R) received approval in March 2001.
 
     Dermatology: High Acceptance of Advantan(R)
     Sales in the Dermatology business area rose 3% to EUR54m. This increase is
 due primarily to our products for the treatment of eczema, Advantan(R) and
 Nerisona(R). In particular, the volume sales of Advantan(R) rose extremely
 well.
 
     Net Sales by Business Area                              Schering AG Group
                                  %of net sales          (in EURm)
                              1-3/2001    1-3/2000  1-3/2001   1-3/2000
 
     Fertility Control and
      Hormone Therapy            32%        30%        370       318
     Therapeutics                30%        32%        352       329
     Diagnostics and
      Radiopharmaceuticals       29%        28%        332       295
     Dermatology                  5%         5%         54        53
     Other sources                4%         5%         49        49
     Total                      100%       100%      1,157     1,044
 
 
                                             Change from 1-3/2000
 
                               Total    Volume/Price   Currency    Acquisitions
 
     Fertility Control and
      Hormone Therapy          + 16%        + 17%       -  1%            0%
     Therapeutics              +  7%           0%          0%         +  7%
     Diagnostics and
      Radiopharmaceuticals     + 12%        +  1%       -  1%         + 12%
     Dermatology               +  3%        +  7%       -  4%           --
     Other sources                0%           0%          0%           --
     Total                     + 11%        +  6%        - 1%         +  6%
 
 
     Aventis CropScience S.A.
     Despite a market that continues to be challenging, Aventis CropScience
 S.A. increased sales by 9% compared to the first quarter of 2000.  Sales
 reached EUR1,170m with significant growth achieved in the following markets:
 Brazil, the United States, Canada, Japan, and France. The herbicides
 Balance(R), Puma(R), Basta(R), and Liberty(R) led the growth in sales; the
 insecticide Regent(R) and the fungicide Aliette(R) also performed well.  A new
 fungicide, Fenomen(R), was launched in France, while a new insecticide,
 Profil(R), was introduced in Greece during the first quarter.
 
     Personnel
     The average number of employees of the Schering Group rose 9% to 24,594
 (excluding acquisitions, 3% to 23,297). At the same time, personnel costs rose
 19% to EUR367m (excluding acquisitions, 10% to EUR341m). Exchange-rate effects
 had no significant impact.
 
 
     Personnel
                                                                       Year
     January - March                  2001       2000      Change      2000
 
     Employees*                     24,594     22,591      +  9%     23,720
     Personnel costs in EURm**         367        309      + 19%      1,422
 
     *    Average
     **   Wages and salaries, social contributions, pensions
 
 
     Capital Expenditure
     We are planning to invest approximately EUR229m in the year 2001. Capital
 expenditure will thereby be 24% higher than last year. Although we are
 expecting expenditures on the level of the previous year for our subsidiaries,
 the volume of investments of Schering AG will increase significantly due in
 part to large-scale projects for expanding our microbiological production
 capacity at our Bergkamen site.
 
     metaGen: Successful Spin-off
     In March 2001, Schering announced the spin-off of metaGen Gesellschaft
 fuer Genomforschung mbH (Corporation for Gene Research).  Apax Partners Funds,
 advised by the internationally-active venture capital company Apax Partners,
 contributed EUR42m to the future metaGen Pharmaceuticals.  Apax will own 50%
 of the shares, and 43.5% of the shares will remain in the ownership of
 Schering AG. metaGen's management will hold 6.5% of the shares.  The spin-off
 constitutes the largest of its kind from a German pharmaceutical company to
 date.
     metaGen was founded by Schering AG in 1996 and works in the area of
 functional genome analysis.  For the benefit of patients, it exploits the full
 potential of the human genome project in order to develop new agents and
 strategies for cancer therapy and diagnosis.  The spin-off should allow the
 company to realize its full potential. We will continue to cooperate on
 certain metaGen research projects which are also of interest to Schering.
 
     Cash Flow Statement
     In comparing the greater increase of cash flow to the growth of net
 income, it needs to be taken into consideration that EUR17m of profit from
 sales of equity investments was disclosed under "Cash flows from/used in
 investing activities" in the previous year.
 
     Net Income up 19%
     Despite pre-marketing expenses in the sales division, especially for the
 introduction of products in the United States, operating profit was slightly
 above the previous year's period.  It is important to consider that corporate
 acquisitions in the previous year, which account for 5% of net sales, have not
 yet made a significant contribution to profit performance.
     With an outstanding sales increase of 9% and no further restructuring
 costs, Aventis CropScience showed an excellent first quarter profit
 performance.  Schering's share of the net income amounted to EUR28m versus
 EUR16m in the first quarter of 2000.
     The tax reform in Germany, which caused one-off tax expenses in the
 previous year, has led to a reduction of tax expenses.
     Net income increased 19% to EUR126m.
 
 
     Cash flow statements                                 Schering AG Group
 
                                         Jan.-March  Jan.-March   Full year
     (values expressed in EURm)                2001        2000        2000
 
     Cash flows before working capital changes  182         145         645
     Changes in working capital                - 23          52        -180
     Cash flows from operating activities       159         197         465
     Cash flows from/used
      in investing activities                  -107          63        -119
     Cash flows used in financing activities   - 76        - 39        -172
     Net change in cash and cash equivalents   - 24         221         174
     Effect of exchange-rate movements
       on cash and cash equivalents            -  1           3        -  2
     Cash and cash equivalents at January, 1    274         102         102
     Cash and cash equivalents
      at March 31/December 31                   249         326         274
 
 
     Outlook
     The effect on growth resulting from acquisitions will decline in the
 course of the year.  For the entirety of 2001, we expect a tight double-digit
 sales increase; this increase, however, due to forthcoming product launches in
 the course of the year will only take effect during the fourth quarter. Due to
 expenses from product launches, the new products will not contribute
 significantly to profit performance.  For these reasons, we expect only a
 slight increase in the operating profit for 2001 compared to the previous
 year.
     The lack of one-off profit from the sale of equity investments in the
 previous year will be more than balanced out by the better profit performance
 of Aventis CropScience.  We expect net income to rise significantly by 15 to
 20%.
 
     Schering Aktiengesellschaft
     The Executive Board
     Berlin, April 2001
 
     Disclaimer
     Certain statements in this press release that are neither reported
 financial results nor other historical information are forward-looking
 statements, including but not limited to, statements that are predictions of
 or indicate future events, trends, plans or objectives.  Undue reliance should
 not be placed on such statements because, by their nature, they are subject to
 known and unknown risks and uncertainties and can be affected by other factors
 that could cause actual results and Schering AG's plans and objectives to
 differ materially from those expressed or implied in the forward-looking
 statements. Certain factors that may cause such differences are discussed in
 our Form 20-F and Form 6-K reports filed with the U.S. Securities and Exchange
 Commission.  Schering AG undertakes no obligation to update publicly or revise
 any of these forward-looking statements, whether to reflect new information or
 future events or circumstances or otherwise.
 
 
     Earnings Indicators by Quarter                          Schering AG Group
     (values expressed in EURm)
 
                               1st       2nd      3rd        4th
                             quarter   quarter  quarter    quarter  Full year
 
     Net sales       2001     1,157
                     2000     1,044     1,173     1,132      1,144      4,493
 
     Gross profit    2001       876
                     2000       806       876       849        873      3,404
 
     Operating
      profit         2001       192
                     2000       188       173       113        166        640
 
     Profit on
      ordinary
      activities     2001       208
                     2000       207       183       105        140        635
 
     Income before
      minority
      interest       2001       128
                     2000       109       103        65         68        345
 
     Net income      2001       126
                     2000       106       103        61         66        336
 
     Basic earnings
      per share*
      (in EUR)       2001      0.64
                     2000      0.54      0.51      0.31       0.34       1.70
 
     * Figures for the 1st quarter 2000 have been adjusted
       due to a 1:3 share split
 
 
     Segment Reporting                                      Schering AG Group
     (values expressed in EURm)
                                                                    Change
                                  Segment    Internal   External      year-
                                net sales   net sales  net sales    on-year
 
     January-March 2001
 
     Europe region**                755         198        557       + 14%
     Unites States region           243           2        241       +  4%
     Japan region                   140          --        140       + 14%
     Latin America/Canada region    120          10        120       + 14%
     Asia region                     52           1         51       +  3%
     Other activities                67          19         48       +  4%
     Segment total                1,387         230      1,157       + 11%
 
     Research and development
      costs                          --          --         --         --
     Central production overheads
      and production variances       --          --         --         --
     Other                           --          --         --         --
     Schering Group               1,387         230      1,157       + 11
 
     January-March 2000
     Europe region**                664         174        490       + 12%
     Unites States region           232           1        231       + 49%
     Japan region                   123          --        123       + 32%
     Latin America/Canada region    110           5        105       + 27%
     Asia region                     50           1         49       + 36%
     Other activities                61          15         46       + 35%
     Segment total                1,240         196      1,044       + 25%
     Research and development
      costs                          --          --         --         --
     Central production overheads
      and production variances       --          --         --         --
     Other                           --          --         --         --
     Schering Group               1,240         196      1,044       + 25%
 
 
                                 Segment     Change                    Change
                                  perfor-      year-      Segment        year-
                                   mance*    on-year       result      on-year
 
     January-March 2001
 
     Europe region**                249        + 11%        142        + 11%
     Unites States region            67        - 17%         10        - 58%
     Japan region                    41        - 16%         12        - 50%
     Latin America/Canada region     42        + 17%         26        + 18%
     Asia region                     18        +  6%         10           0%
     Other activities                24        + 14%         13        +  8%
     Segment total                  441        +  3%        213        -  3%
     Research and development
      costs                       - 204        + 10%         --          --
     Central production overheads
      and production variances    -  24        +  9%         --          --
     Other                        -  21        - 34%       - 21        - 34%
     Schering Group                 192        +  2%        192        +  2%
 
 
     January-March 2000
     Europe region**                224        + 10%        128        + 19%
     Unites States region            81        + 62%         24        +500%
     Japan region                    49        + 26%         24        + 26%
     Latin America/Canada region     36        + 13%         22           0%
     Asia region                     17        + 42%         10        + 67%
     Other activities                21        + 17%         12        + 33%
     Segment total                  428        + 21%        220        + 31%
     Research and development
      costs                       - 186        + 16%         --          --
     Central production overheads
      and production variances    -  22        - 12%         --          --
     Other                        -  32        - 47%       - 32        - 47%
     Schering Group                 188        + 31%        188        + 31%
 
     *   Measure of performance used internally in the Schering Group
         (before allocation of research and development costs and
         central production overheads and production variances)
 
     **  incl. Africa, Australia and New Zealand
 
 
     Consolidated Income Statements                         Schering AG Group
     (values expressed in EURm)
 
     January-March         2001        2000         Change     Full year 2000
 
     Net sales            1,157       1,044         + 11%          4,493
     Cost of sales       -  281      -  238         + 18%        - 1,089
 
     Gross profit           876         806         +  9%          3,404
     Costs of
       marketing
        and selling      -  362      -  314         + 15%         -1,498
       engineering and
        administration   -  120      -  100        + 20%          -  456
       research and
        development      -  204      -  186         + 10%         -  811
     Other operating
      expenses/income         2      -   18                            1
     Operating profit       192         188         +  2%            640
     Result from
      Aventis CropScience    28          16         + 75%          -  59
     Other financial
      result             -   12           3                           54
 
     Profit on ordinary
      activities            208         207            0%            635
     Taxes on profit     -   80       -  98         - 18%         -  290
 
     Income before
      minority interests    128         109         + 17%            345
     Minority interests
      in profits/losses  -    2       -   3                       -    9
 
     Net income             126         106         + 19%            336
 
     Basic earnings per
      share* (in EUR)      0.64        0.54         +19 %           1.70
     Diluted earnings per
      share* (in EUR)**    0.64        0.54         +19 %           1.68
 
     *  Figures for last year adjusted due to a 1:3 share split
 
     ** Diluted by stock options issued as part of long-term incentive plans
     for employees
 
 
     Consolidated Balance Sheets                             Schering AG Group
     (values expressed in EURm)
 
     Assets                             March 31, 2001     December 31,2000
 
     Goodwill                                 355                359
     Other intangible assets                  166                142
     Property, plant, and equipment         1,210              1,201
     Financial assets                         594                543
 
     Fixed assets                           2,325              2,245
 
     Inventories                              838                779
     Receivables and other assets           1,527              1,530
     Marketable securities                    440                378
     Cash and cash equivalents                249                274
 
     Other non-current and current assets   3,054              2,961
                                            5,379              5,206
 
 
 
     Equity and liabilities                                 Schering AG Group
 
                                        March 31, 2001   December 31, 2000
 
     Paid-up capital                          528                528
     Retained earnings at January 1         1,769              1,570
     Dividend payments                          0             -  165
     Net income                               126                336
     Unrealized gains and losses on
       marketable securities                   67                  0
     Translation adjustments                   24                 28
 
     Retained earnings at
      March 31 / December 31                1,986              1,769
 
     Shareholders' equity                   2,514              2,297
     Minority interests                        91                 92
     Non-current provisions
      and liabilities                       1,582              1,570
     Current provisions
      and liabilities                       1,192              1,247
 
     Provisions and liabilities             2,774              2,817
                                            5,379              5,206
 
 
     The Interim Report has not been audited.
 
 

SOURCE Schering Group
    BERLIN, April 25 /PRNewswire/ -- This Interim Report for the
 Schering Group (NYSE:   SHR; FSE: SCH) comprises the Consolidated Income
 Statements as well as condensed versions of the Consolidated Balance Sheets
 and Consolidated Cash Flow Statements. It also provides a regional breakdown
 of sales and results.
     Major earnings indicators are presented on a quarterly basis.  In the
 preparation of Interim Reports, we apply the same valuation and accounting
 policies as in the preparation of our Annual Financial Statements. Translation
 of the figures from companies outside the European Monetary Union is performed
 in accordance with the concept of functional currency.  The closing rate
 method is used for all such companies.
     Since January 1, 2001, we have applied the International Accounting
 Standard IAS 39. This standard requires securities to be valued at market
 value.  The adoption of this standard had no impact on net income as
 unrealized gains and losses are excluded from earnings and reported as a
 separate component of equity.  The adoption of the International Accounting
 Standard IAS 40 since January 1, 2001, did not change our previous valuation
 and accounting policies as we opted for the cost model; i.e., we continue to
 carry investment property at its cost less any accumulated depreciation and
 any accumulated impairment losses.
     This Interim Report complies with International Accounting Standard IAS
 34. The Report has not been audited.
 
     Good Start to 2001
     In the first quarter 2001, net sales of the Schering Group rose 11%
 compared to last year's period to EUR1,157m. The companies acquired in 2000,
 which are now completely integrated into the Schering Group, contributed
 EUR60m to sales growth.
     This growth, adjusted for acquisitions, was based almost entirely on
 increased volumes; currency and price effects had no significant influence.
     The Regions Europe, Japan, and Latin America/Canada showed a positive
 increase in sales by 14% each. The slight drop in sales in Germany of 1% was
 more than offset by significant increases in net sales in other European
 countries. In many countries in Central and Eastern Europe, we achieved a
 sales growth of over 50%.
     In our United States Region, the decline in sales of Betapace(R) by 68% to
 EUR17m, caused by the loss of market exclusivity last year, was
 counterbalanced by increased sales of Climara(R), Fludara(R), and
 Betaferon(R).
     Betaferon(R), our treatment for different forms of multiple sclerosis, was
 once again the best-selling product. Compared to the first quarter of last
 year, sales of Betaferon(R) increased by 14%.
     Our modern contraceptive Yasmin(R), recently launched in Germany and other
 European markets, has shown an extremely positive increase in volume sales.
 
 
     Top-selling Products in the First Quarter 2001
 
                              Jan. - March     Change from 1-3/2000
                                  2001               currency
                               (in EURm)         total    adjusted
 
      1. Betaferon(R)*            160           + 14%       + 14%
      2. Iopamiron(R)              76           -  7%          0%
      3. Magnevist(R)              71           +  1%       +  1%
      4. Ultravist(R)              63              0%       +  2%
      5. Diane(R)                  55           + 14%       + 16%
      6. Fludara(R)                40           + 62%       + 57%
      7. Microgynon(R)             33           + 10%       + 15%
      8. Climara(R)                33           + 66%       + 60%
      9. Meliane(R)                30           + 29%       + 29%
     10. Femovan(R)                28           -  1%       +  2%
     11. Triquilar(R)              26           +  8%       + 10%
     12. Androcur(R)               25           +  1%       +  4%
     13. Mirena(R)                 22           + 29%       + 30%
     14. Betapace(R)               17           - 68%       - 70%
     15. Miranova(R)               12           + 72%       + 68%
 
     * Trade name in the USA and Canada: Betaseron(R)
 
 
     Fertility Control and Hormone Therapy: Outstanding Start for Yasmin(R)
     With an increase of 16% compared to last year's period, net sales in the
 Fertility Control and Hormone Therapy business area rose to EUR370m.
     Our modern contraceptive Yasmin(R), launched in Germany in November 2000,
 has already taken a market share of over 6%. In addition to providing reliable
 contraception, Yasmin(R) offers a greater sense of well-being thanks to its
 additional benefits: stable body weight, relief of complaints before and
 during menstruation, and positive effects on the skin.
     With the development of Drospirenon, the new active substance in
 Yasmin(R), Schering has set a milestone in the history of hormone research. In
 March 2001, Yasmin(R) was also launched in Scandinavia and Belgium.
     An above-average sales increase of 29% was achieved with both our low-dose
 oral contraceptive Meliane(R) as well as with Mirena(R). Mirena(R), our unique
 intrauterine hormone-delivery system, was launched in the United States at the
 beginning of 2001.
     Of our treatments for climacteric complaints, the hormone patch Climara(R)
 achieved an increase in sales of 66%; this growth is primarily due to an
 increase in sales in the United States. At the beginning of April, the
 American Food and Drug Administration (FDA), approved a new, expanded
 indication for Climara(R) 25, an extremely low-dose estrogen patch. With this
 approval, Climara(R) 25 is now also indicated for the treatment of vasomotor
 symptoms like hot flushes and night sweats. Previously, it was only approved
 for the long-term prevention of osteoporosis. As a result, Climara(R) 25 is
 now the only estradiol transdermal patch on the United States market to
 provide the lowest effective dosage of estrogen proven to treat menopausal
 symptoms and prevent osteoporosis. Climara(R) 25 was submitted for
 registration in Europe in March 2001.
 
     Net Sales by Region*                                  Schering AG Group
 
                               %of net sales           (in EURm)
                           1-3/2001   1-3/2000    1-3/2001  1-3/2000
 
     Europe*                  48%        47%         557       490
     United States            21%        22%         241       231
     Japan                    12%        12%         140       123
     Latin America/
      Canada                  10%        10%         120       105
     Asia                      5%         5%          51        49
     Other
      activities               4%         4%          48        46
 
     Total                   100%      100%        1,157     1,044
 
 
                                          Change from 1-3/2000
 
                              Total     Volume/Price  Currency   Acquisitions
 
     Europe*                  + 14%        + 10%       -  2%        +  6%
     United States            +  4%        -  4%       +  6%        +  2%
     Japan                    + 14%        -  3%       -  6%        + 23%
     Latin America/
      Canada                  + 14%        + 15%       -  1%          --
     Asia                     +  3%        +  9%       -  6%          --
     Other
      activities             +  4%         +  4%         --           --
 
     Total                   + 11%         +  6%        - 1%        +  6%
 
     * incl. Africa, Australia and New Zealand
 
 
     Therapeutics: Further Growth with Betaferon(R)
     Therapeutics recorded an increase in sales of 7% compared to the first
 quarter of last year. Betaferon(R), a biotech-based interferon for the
 treatment of multiple sclerosis, was the major contributor (+14%) to this
 growth. Betaferon(R) is still the only product which is approved for the
 treatment of both the relapsing remitting form as well as the secondary
 progressive form (SPMS) of multiple sclerosis.
     We are exceptionally pleased with the 62% increase in sales of Fludara(R).
 Fludara(R) has successfully become the standard for the second-line therapy of
 chronic lymphocytic leukemia, a malignant cancer of the lymphatic system. The
 new application form Fludara(R) Oral opens up additional treatment
 possibilities. It was approved in Great Britain in January 2001 and is
 currently going through the process of Mutual Recognition Approval in the
 remaining European countries.
 
     Diagnostics and Radiopharmaceuticals: World Market Leader in In-vivo
      Diagnostics
     Sales in Diagnostics and Radiopharmaceuticals rose 12% to EUR332m. Of
 this, EUR170m was from X-ray contrast media, EUR73m from products for magnetic
 resonance imaging (MRI), and EUR48m from contrast medium application
 technologies.  Radiopharmaceuticals achieved net sales of EUR39m. This is due
 largely to the acquisition of the French company CIS bio international in
 April 2000.
     In the fiercely-contested market of in-vivo diagnostics, we are still the
 world market leader. We have once again increased volume sales of both our
 non-ionic contrast medium Ultravist(R) and our MRI contrast agent Magnevist(R)
 despite price and currency effects.
     An additional reinforcement of our position in the diagnostics market is
 expected with Resovist(R), an effective, next-generation MRI contrast medium
 for the improved imaging and detection of liver tumors. In March, Resovist(R)
 received market approval in Sweden, the European Reference Member State for
 the Mutual Recognition Procedure. Based on this approval, marketing
 authorization for Resovist(R) is expected in all other EU countries by
 mid-2001.  In Switzerland, Resovist(R) received approval in March 2001.
 
     Dermatology: High Acceptance of Advantan(R)
     Sales in the Dermatology business area rose 3% to EUR54m. This increase is
 due primarily to our products for the treatment of eczema, Advantan(R) and
 Nerisona(R). In particular, the volume sales of Advantan(R) rose extremely
 well.
 
     Net Sales by Business Area                              Schering AG Group
                                  %of net sales          (in EURm)
                              1-3/2001    1-3/2000  1-3/2001   1-3/2000
 
     Fertility Control and
      Hormone Therapy            32%        30%        370       318
     Therapeutics                30%        32%        352       329
     Diagnostics and
      Radiopharmaceuticals       29%        28%        332       295
     Dermatology                  5%         5%         54        53
     Other sources                4%         5%         49        49
     Total                      100%       100%      1,157     1,044
 
 
                                             Change from 1-3/2000
 
                               Total    Volume/Price   Currency    Acquisitions
 
     Fertility Control and
      Hormone Therapy          + 16%        + 17%       -  1%            0%
     Therapeutics              +  7%           0%          0%         +  7%
     Diagnostics and
      Radiopharmaceuticals     + 12%        +  1%       -  1%         + 12%
     Dermatology               +  3%        +  7%       -  4%           --
     Other sources                0%           0%          0%           --
     Total                     + 11%        +  6%        - 1%         +  6%
 
 
     Aventis CropScience S.A.
     Despite a market that continues to be challenging, Aventis CropScience
 S.A. increased sales by 9% compared to the first quarter of 2000.  Sales
 reached EUR1,170m with significant growth achieved in the following markets:
 Brazil, the United States, Canada, Japan, and France. The herbicides
 Balance(R), Puma(R), Basta(R), and Liberty(R) led the growth in sales; the
 insecticide Regent(R) and the fungicide Aliette(R) also performed well.  A new
 fungicide, Fenomen(R), was launched in France, while a new insecticide,
 Profil(R), was introduced in Greece during the first quarter.
 
     Personnel
     The average number of employees of the Schering Group rose 9% to 24,594
 (excluding acquisitions, 3% to 23,297). At the same time, personnel costs rose
 19% to EUR367m (excluding acquisitions, 10% to EUR341m). Exchange-rate effects
 had no significant impact.
 
 
     Personnel
                                                                       Year
     January - March                  2001       2000      Change      2000
 
     Employees*                     24,594     22,591      +  9%     23,720
     Personnel costs in EURm**         367        309      + 19%      1,422
 
     *    Average
     **   Wages and salaries, social contributions, pensions
 
 
     Capital Expenditure
     We are planning to invest approximately EUR229m in the year 2001. Capital
 expenditure will thereby be 24% higher than last year. Although we are
 expecting expenditures on the level of the previous year for our subsidiaries,
 the volume of investments of Schering AG will increase significantly due in
 part to large-scale projects for expanding our microbiological production
 capacity at our Bergkamen site.
 
     metaGen: Successful Spin-off
     In March 2001, Schering announced the spin-off of metaGen Gesellschaft
 fuer Genomforschung mbH (Corporation for Gene Research).  Apax Partners Funds,
 advised by the internationally-active venture capital company Apax Partners,
 contributed EUR42m to the future metaGen Pharmaceuticals.  Apax will own 50%
 of the shares, and 43.5% of the shares will remain in the ownership of
 Schering AG. metaGen's management will hold 6.5% of the shares.  The spin-off
 constitutes the largest of its kind from a German pharmaceutical company to
 date.
     metaGen was founded by Schering AG in 1996 and works in the area of
 functional genome analysis.  For the benefit of patients, it exploits the full
 potential of the human genome project in order to develop new agents and
 strategies for cancer therapy and diagnosis.  The spin-off should allow the
 company to realize its full potential. We will continue to cooperate on
 certain metaGen research projects which are also of interest to Schering.
 
     Cash Flow Statement
     In comparing the greater increase of cash flow to the growth of net
 income, it needs to be taken into consideration that EUR17m of profit from
 sales of equity investments was disclosed under "Cash flows from/used in
 investing activities" in the previous year.
 
     Net Income up 19%
     Despite pre-marketing expenses in the sales division, especially for the
 introduction of products in the United States, operating profit was slightly
 above the previous year's period.  It is important to consider that corporate
 acquisitions in the previous year, which account for 5% of net sales, have not
 yet made a significant contribution to profit performance.
     With an outstanding sales increase of 9% and no further restructuring
 costs, Aventis CropScience showed an excellent first quarter profit
 performance.  Schering's share of the net income amounted to EUR28m versus
 EUR16m in the first quarter of 2000.
     The tax reform in Germany, which caused one-off tax expenses in the
 previous year, has led to a reduction of tax expenses.
     Net income increased 19% to EUR126m.
 
 
     Cash flow statements                                 Schering AG Group
 
                                         Jan.-March  Jan.-March   Full year
     (values expressed in EURm)                2001        2000        2000
 
     Cash flows before working capital changes  182         145         645
     Changes in working capital                - 23          52        -180
     Cash flows from operating activities       159         197         465
     Cash flows from/used
      in investing activities                  -107          63        -119
     Cash flows used in financing activities   - 76        - 39        -172
     Net change in cash and cash equivalents   - 24         221         174
     Effect of exchange-rate movements
       on cash and cash equivalents            -  1           3        -  2
     Cash and cash equivalents at January, 1    274         102         102
     Cash and cash equivalents
      at March 31/December 31                   249         326         274
 
 
     Outlook
     The effect on growth resulting from acquisitions will decline in the
 course of the year.  For the entirety of 2001, we expect a tight double-digit
 sales increase; this increase, however, due to forthcoming product launches in
 the course of the year will only take effect during the fourth quarter. Due to
 expenses from product launches, the new products will not contribute
 significantly to profit performance.  For these reasons, we expect only a
 slight increase in the operating profit for 2001 compared to the previous
 year.
     The lack of one-off profit from the sale of equity investments in the
 previous year will be more than balanced out by the better profit performance
 of Aventis CropScience.  We expect net income to rise significantly by 15 to
 20%.
 
     Schering Aktiengesellschaft
     The Executive Board
     Berlin, April 2001
 
     Disclaimer
     Certain statements in this press release that are neither reported
 financial results nor other historical information are forward-looking
 statements, including but not limited to, statements that are predictions of
 or indicate future events, trends, plans or objectives.  Undue reliance should
 not be placed on such statements because, by their nature, they are subject to
 known and unknown risks and uncertainties and can be affected by other factors
 that could cause actual results and Schering AG's plans and objectives to
 differ materially from those expressed or implied in the forward-looking
 statements. Certain factors that may cause such differences are discussed in
 our Form 20-F and Form 6-K reports filed with the U.S. Securities and Exchange
 Commission.  Schering AG undertakes no obligation to update publicly or revise
 any of these forward-looking statements, whether to reflect new information or
 future events or circumstances or otherwise.
 
 
     Earnings Indicators by Quarter                          Schering AG Group
     (values expressed in EURm)
 
                               1st       2nd      3rd        4th
                             quarter   quarter  quarter    quarter  Full year
 
     Net sales       2001     1,157
                     2000     1,044     1,173     1,132      1,144      4,493
 
     Gross profit    2001       876
                     2000       806       876       849        873      3,404
 
     Operating
      profit         2001       192
                     2000       188       173       113        166        640
 
     Profit on
      ordinary
      activities     2001       208
                     2000       207       183       105        140        635
 
     Income before
      minority
      interest       2001       128
                     2000       109       103        65         68        345
 
     Net income      2001       126
                     2000       106       103        61         66        336
 
     Basic earnings
      per share*
      (in EUR)       2001      0.64
                     2000      0.54      0.51      0.31       0.34       1.70
 
     * Figures for the 1st quarter 2000 have been adjusted
       due to a 1:3 share split
 
 
     Segment Reporting                                      Schering AG Group
     (values expressed in EURm)
                                                                    Change
                                  Segment    Internal   External      year-
                                net sales   net sales  net sales    on-year
 
     January-March 2001
 
     Europe region**                755         198        557       + 14%
     Unites States region           243           2        241       +  4%
     Japan region                   140          --        140       + 14%
     Latin America/Canada region    120          10        120       + 14%
     Asia region                     52           1         51       +  3%
     Other activities                67          19         48       +  4%
     Segment total                1,387         230      1,157       + 11%
 
     Research and development
      costs                          --          --         --         --
     Central production overheads
      and production variances       --          --         --         --
     Other                           --          --         --         --
     Schering Group               1,387         230      1,157       + 11
 
     January-March 2000
     Europe region**                664         174        490       + 12%
     Unites States region           232           1        231       + 49%
     Japan region                   123          --        123       + 32%
     Latin America/Canada region    110           5        105       + 27%
     Asia region                     50           1         49       + 36%
     Other activities                61          15         46       + 35%
     Segment total                1,240         196      1,044       + 25%
     Research and development
      costs                          --          --         --         --
     Central production overheads
      and production variances       --          --         --         --
     Other                           --          --         --         --
     Schering Group               1,240         196      1,044       + 25%
 
 
                                 Segment     Change                    Change
                                  perfor-      year-      Segment        year-
                                   mance*    on-year       result      on-year
 
     January-March 2001
 
     Europe region**                249        + 11%        142        + 11%
     Unites States region            67        - 17%         10        - 58%
     Japan region                    41        - 16%         12        - 50%
     Latin America/Canada region     42        + 17%         26        + 18%
     Asia region                     18        +  6%         10           0%
     Other activities                24        + 14%         13        +  8%
     Segment total                  441        +  3%        213        -  3%
     Research and development
      costs                       - 204        + 10%         --          --
     Central production overheads
      and production variances    -  24        +  9%         --          --
     Other                        -  21        - 34%       - 21        - 34%
     Schering Group                 192        +  2%        192        +  2%
 
 
     January-March 2000
     Europe region**                224        + 10%        128        + 19%
     Unites States region            81        + 62%         24        +500%
     Japan region                    49        + 26%         24        + 26%
     Latin America/Canada region     36        + 13%         22           0%
     Asia region                     17        + 42%         10        + 67%
     Other activities                21        + 17%         12        + 33%
     Segment total                  428        + 21%        220        + 31%
     Research and development
      costs                       - 186        + 16%         --          --
     Central production overheads
      and production variances    -  22        - 12%         --          --
     Other                        -  32        - 47%       - 32        - 47%
     Schering Group                 188        + 31%        188        + 31%
 
     *   Measure of performance used internally in the Schering Group
         (before allocation of research and development costs and
         central production overheads and production variances)
 
     **  incl. Africa, Australia and New Zealand
 
 
     Consolidated Income Statements                         Schering AG Group
     (values expressed in EURm)
 
     January-March         2001        2000         Change     Full year 2000
 
     Net sales            1,157       1,044         + 11%          4,493
     Cost of sales       -  281      -  238         + 18%        - 1,089
 
     Gross profit           876         806         +  9%          3,404
     Costs of
       marketing
        and selling      -  362      -  314         + 15%         -1,498
       engineering and
        administration   -  120      -  100        + 20%          -  456
       research and
        development      -  204      -  186         + 10%         -  811
     Other operating
      expenses/income         2      -   18                            1
     Operating profit       192         188         +  2%            640
     Result from
      Aventis CropScience    28          16         + 75%          -  59
     Other financial
      result             -   12           3                           54
 
     Profit on ordinary
      activities            208         207            0%            635
     Taxes on profit     -   80       -  98         - 18%         -  290
 
     Income before
      minority interests    128         109         + 17%            345
     Minority interests
      in profits/losses  -    2       -   3                       -    9
 
     Net income             126         106         + 19%            336
 
     Basic earnings per
      share* (in EUR)      0.64        0.54         +19 %           1.70
     Diluted earnings per
      share* (in EUR)**    0.64        0.54         +19 %           1.68
 
     *  Figures for last year adjusted due to a 1:3 share split
 
     ** Diluted by stock options issued as part of long-term incentive plans
     for employees
 
 
     Consolidated Balance Sheets                             Schering AG Group
     (values expressed in EURm)
 
     Assets                             March 31, 2001     December 31,2000
 
     Goodwill                                 355                359
     Other intangible assets                  166                142
     Property, plant, and equipment         1,210              1,201
     Financial assets                         594                543
 
     Fixed assets                           2,325              2,245
 
     Inventories                              838                779
     Receivables and other assets           1,527              1,530
     Marketable securities                    440                378
     Cash and cash equivalents                249                274
 
     Other non-current and current assets   3,054              2,961
                                            5,379              5,206
 
 
 
     Equity and liabilities                                 Schering AG Group
 
                                        March 31, 2001   December 31, 2000
 
     Paid-up capital                          528                528
     Retained earnings at January 1         1,769              1,570
     Dividend payments                          0             -  165
     Net income                               126                336
     Unrealized gains and losses on
       marketable securities                   67                  0
     Translation adjustments                   24                 28
 
     Retained earnings at
      March 31 / December 31                1,986              1,769
 
     Shareholders' equity                   2,514              2,297
     Minority interests                        91                 92
     Non-current provisions
      and liabilities                       1,582              1,570
     Current provisions
      and liabilities                       1,192              1,247
 
     Provisions and liabilities             2,774              2,817
                                            5,379              5,206
 
 
     The Interim Report has not been audited.
 
 SOURCE  Schering Group