Genzyme Reports Strong Second-Quar...(of our investment in the common stock of...)

Pharmaceuticals, Inc., offset in part by a pre-tax impairment charge

of $(1,289)K related to our investment in the common stock of GTC

Biotherapeutics, Inc.

(7) 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 June 30, 2008 and

2007, and $3.8 million, net of tax, for both the six months ended June

30, 2008 and 2007 have been added back to net income and 9,686K shares

have been added to diluted weighted average shares outstanding for

each of those periods for purposes of computing diluted earnings per

share.

GENZYME CORPORATION (GENZ)

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands)

June 30, December 31,

2008 2007

Cash and all marketable securities $1,254,494 $1,460,394

Other current assets 1,868,455 1,661,740

Property, plant and equipment, net 2,212,044 1,968,402

Intangibles, net (1) 3,394,232 2,959,480

Other noncurrent assets (2)
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