Genzyme Reports Strong First-Quar...( expense ...)

expense (22,889) (22,499)

Research and development expense (12,585) (12,312)

Total pre-tax charges for stock-

based compensation expense (41,988) (40,707)

Tax benefit 12,537 12,432

Stock-based compensation expense,

net of tax $(29,451) $(28,275)

Diluted earnings per share and diluted weighted average shares outstanding

for the three months ended March 31, 2008 and 2007 were computed according

to the provisions of FAS 123R.

(2) Includes a charge of $(69,900)K recorded in February 2008 representing

the premium paid to purchase five million shares of Isis

Pharmaceuticals, Inc. common stock.

(3) For the three months ended March 31, 2007, includes a pre-tax gain of

$10,848K related to the sale of our entire investment in the common

stock of Therapeutic Human Polyclonals, Inc. in March 2007, which had

a zero cost basis.

(4) All periods reflect the adoption of Emerging Issues Task Force Issue

No. 04-8, "The Effect of Contingently Convertible Debt on Diluted

Earnings Per Share," or EITF 04-8. As a result of the adoption of EITF

04-8, the 9,686K shares issuable upon conversion of our $690.0 million

in principal of 1.25% convertible senior notes, which were issued in

December 2003, are now included in diluted weighted average shares

outstanding for purposes of computing diluted earnings per share,

unless the effect would be anti-dilutive. In accordance with EITF 04-

8, interest and debt fees related to these notes of $1.9 million, net

of tax, for both the three months ended March 31, 2008 and 2007, have

been added back to net income and 9,686K shares have
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