It has been a very positive and eventful year for Genzyme.

In 2007, we delivered solid performance across every business in our diversified company, resulting in our fifth consecutive year of strong, profitable growth. We made significant progress in our R&D and business development efforts, strengthening our prospects both for the near and long term. Most important, during the year we reached more patients than ever worldwide with market-leading, standard-of-care treatments across a wide spectrum of medical need.

TAKING OUR SUCCESS FORWARD
Genzyme achieved strong results across every meaningful financial measure in 2007. Revenue for the year reached $3.8 billion, a 20 percent increase over the previous year's revenue of $3.2 billion. Non-GAAP earnings grew to $3.47 per share, a 25 percent year-over-year improvement. Our revenue growth and continued operating expense leverage drove net income gains over 2006.

Over the past 26 years, we have worked to build a company more capable every year of sustaining growth that benefits our patients and investors in equal measure. This gradual, sustainable approach has built value consistently.

Our confidence in that capability has grown with our business. In 2007, we made a commitment to our shareholders: We intend to grow non-GAAP earnings by a compound average rate of 20 percent from 2006 through 2011. By the end of that period, we expect to be achieving non-GAAP earnings per share of $7.00. Annual revenue is expected to reach almost $7 billion by 2012.

HOW WE WILL ACHIEVE OUR GOAL
The Genzyme business model comprises a highly diversified portfolio centered on novel, market-leading therapies with high efficacy and strong data, leveraged across a vertically integrated global infrastructure. The combination of growth from our businesses and leverage from our infrastructure is the principal engine for achieving our 20 percent growth rate commitment, and we are using this leverage to invest in the future.

Another powerful driver is Genzyme science. Each year we are proud to be recognized by some of the world's most prestigious organizations for scientific innovation. In 2007, Genzyme was awarded the U.S. National Medal of Technology, the James D. Watson Helix Award and, for the fifth consecutive year, was named a top employer of scientists by the journal Science and the American Association for the Advancement of Science.

To sustain our growth long term, Genzyme clinical researchers are involved currently in more than 25 phase 2 studies and several major pivotal trials. The strength of our scientific capability also is key in identifying and gaining maximum benefit from collaborations with other companies and acquisitions of late-stage programs or technology.

OUR UNIQUE APPROACH POSITIONS US WELL FOR THE FUTURE
It has been projected that 85 percent of pharmaceutical products in the United States could be generic by 2012. If this becomes a reality, it will mean that the remaining therapies developed will need to generate a sufficient margin to support research and development. From our industry's perspective, it will become even more critical for governments to find mechanisms to allow the economic incentives that encourage R&D investment-investment necessary to realize the enormous and growing potential of science.

To warrant the necessary margins, new therapies must demonstrate high value by solving important clinical problems with a high degree of predictability and effectiveness, which in turn will lead to the increasing importance of personalized medicine and diagnostics.

I believe Genzyme is uniquely well prepared as we move into this new era.

We have invested to develop a strong diagnostics capability that is increasingly relevant, both within our business and in the marketplace. We are committed to pursuing personalized medicine and believe strongly in our ability to link diagnostics with therapies.

On the therapeutic side, our diversified portfolio gives us a broader choice of areas in which to pursue development. We make strategic decisions based on whether a program has the potential to make an important clinical contribution, rather than whether it fits within our defined space.

A good example of this point is the strategic alliance we announced with Isis Pharmaceuticals at the beginning of 2008 to develop and commercialize mipomersen, a powerful cholesterol-lowering therapy. This therapy fits Genzyme's strategic profile perfectly.

AN EMPHASIS ON GLOBAL ACCESS
Another unique Genzyme attribute among biotechnology companies is our approach to expanding global patient access to our treatments. This priority drives ongoing development of our global manufacturing, sales and regulatory infrastructure, and it is reflected in transactions such as our 2007 acquisition of Bioenvision, Inc., which gave us worldwide rights to clofarabine.

What is unique to us is our emphasis on early investment in new geographies. For example, we first opened an office in Japan in 1987, the first biotechnology company to do so. Today, we have a strong, integrated presence there. We started with a local management team in Japan to be sure we became part of the community and understood patient needs; we are building our business in Latin America, Russia, China and India with a similar approach.

In 2007, we achieved outstanding commercial growth in Latin America and expanded our infrastructure in Russia. We increased our direct commercial presence in China with Thymoglobulin and Synvisc, and in India began building our Thymoglobulin sales force. We are also investing in clinical research and academic collaborations in Asia, with trials in India for sevelamer in a new indication and a renal trial planned in China. We are currently planning a research facility in China to support future programs and began our first collaboration there to develop, commercialize and manufacture an experimental gene therapy.

PATIENTS ARE AT THE CENTER OF OUR WORLD
Perhaps the most important distinguishing factor for Genzyme is our focus on patients. Because of our heritage in rare genetic disorders with small patient populations, we are accustomed to close relationships with patients. This creates a unique perspective.

Simply put, our view is this: We succeed by taking care of patients, not by marketing drugs. For instance, we support newborn screening for lysosomal storage disorders because we know that earlier diagnosis of serious genetic diseases saves lives. We facilitated development of international standards and sponsored large pilot studies to advance the technology; we are providing the newborn screening assays without charge to government authorities for distribution.

Our commitment to patients with few or no treatment options has guided us on our journey to become who we are today; it will drive the successful achievement of our goals going forward. I thank our employees for their continued dedication, and you, our shareholders, for your support.

Sincerely,

Henri A. Termeer
March 28, 2008