13. INVENTORIES

As of December 31, inventories consisted of the following:

in million €	2007	2006
Raw materials and purchased components	209	191
Work in process	129	103
Finished goods	579	512
less reserves	42	45
Inventories, net	875	761

The companies of the Fresenius Group are obliged to purchase approximately € 288 million of raw materials and purchased components under fixed terms, of which € 192 million was committed at December 31, 2007 for 2008. The terms of these agreements run one to seven years. Advance payments from customers of € 6 million have been offset against inventories.

Inventories as of December 31, 2007 and December 31, 2006 included approximately € 21 million and approximately € 35 million, respectively, of the product Erythropoietin (EPO), which is supplied by a single source supplier in the United States. Delays, stoppages, or interruptions in the supply of EPO could adversely affect the operating results of Fresenius Medical Care. In October 2006, Fresenius Medical Care entered into a five-year exclusive sourcing and supply agreement with its EPO supplier. Revenues from EPO accounted for approximately 8% and 9% of total sales of the Fresenius Group in 2007 and 2006, respectively.