Genzyme Reports Strong Second-Quar...(453627 251725 Total assets ...)

Total assets $9,182,852 $8,301,741

Current liabilities $1,492,143 $1,502,406

Noncurrent liabilities (1) 649,305 186,398

Stockholders' equity 7,041,404 6,612,937

Total liabilities and stockholders' equity $9,182,852 $8,301,741

(1) Effective January 1, 2008, in connection with the restructuring of

BioMarin/Genzyme LLC, our joint venture with BioMarin Pharmaceutical

Inc., we licensed certain rights to commercialize Aldurazyme from the

joint venture and, in accordance with the provisions of FASB

Interpretation No. 46R, "Consolidation of Variable Interest Entities,"

began consolidating the results of the joint venture at fair value.

As of June 30, 2008, intangibles, net, includes $480,500K for the fair

value of the joint venture's manufacturing and commercialization

rights to Aldurazyme, offset by $(12,012)K of related accumulated

amortization. Our noncurrent liabilities includes $468,488K of

additional net liabilities related to the fair value of these rights.

Excluding these rights, the fair values of the assets and liabilities

of the joint venture as of June 30, 2008 were not significant.

(2) As of June 30, 2008, other noncurrent assets includes $80,100K for the

fair value of the five million shares of Isis common stock that we

purchased in February 2008.

GENZYME CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP EARNINGS

For the Three Months Ended June 30, 2008

(Amounts in thousands, except per share data)

Dilution Gain on

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