News Release

BAXTER EXECUTIVES HIGHLIGHT GROWTH INITIATIVES AT
INVESTOR CONFERENCE

Company Announces Plans to Expand BioScience Production Facilities

NEW YORK, NY, March 15, 2001 - At a conference held today for investors and security analysts, Baxter International Inc. (NYSE:BAX) highlighted several initiatives that are expected to accelerate the company's sales and earnings growth in the future. The company also announced plans to further expand its production capacity for recombinant products, with two additional manufacturing suites at its Neuchatel, Switzerland facility.

Baxter's senior executives highlighted initiatives across the company's major business areas to increase the growth rate over the next several years. Baxter expects continued investments in recombinant and vaccine manufacturing capacity, and an enhanced pipeline of biopharmaceutical, biosurgical, vaccine and transfusion therapy products will increase the annual long-term growth rate of its BioScience business to more than 20 percent. Specifically, Baxter highlighted its plans to grow its vaccines business from sales of approximately $110 million in 2000 to $1 billion by 2010. In Renal Therapy, Baxter showcased its approach for integrating care of patients with chronic renal insufficiency and end-stage renal disease, which includes all elements of treatment, from patient education, to all forms of dialysis and related pharmaceuticals and services. Through such initiatives, over time Baxter expects to increase the annual growth rate of this business to more than 15 percent. And in its Medication Delivery business, Baxter executives presented plans to expand its long-term sales growth to more than 10 percent, through development of new drug delivery platforms, expansion of product portfolios particularly in the areas of anesthesia, pain management, oncology and the perioperative market.

"These initiatives hold great promise for patients and clinicians throughout the world," said Harry M. Jansen Kraemer, Jr., chairman and chief executive officer. "Additionally, through our efforts to innovate new medical therapies and improve access to and efficient delivery of these vital products, we expect to accelerate our overall sales growth to the 15 percent range in the years ahead."

In order to meet the growing demand for Baxter's recombinant Factor VIII therapy, which is produced by recombinant DNA technology for people with hemophilia, and to provide manufacturing capacity for other recombinant proteins in its development pipeline, Baxter plans to aggressively expand production capacity. Factor VIII, or antihemophilic factor, is the protein in human blood that is critical for proper blood coagulation and is deficient in people with hemophilia A. Baxter began construction of its 110,000-square-foot, multi-purpose facility in Neuchatel, Switzerland in 1998. The Neuchatel facility features two state-of-the art production suites, and currently manufactures product used in the continuing clinical trials of Baxter's next-generation recombinant Factor VIII product. This next-generation recombinant Factor VIII excludes any added proteins or raw materials derived from human or animal sources in the manufacture, purification and formulation of the final product. With today's announcement of plans to build two additional production suites, the company is targeting an annual capacity in excess of one billion units of Factor VIII from the Neuchatel facility. Baxter also is considering expansion of its Thousand Oaks, Calif. BioScience facility, and may pursue the addition of a fourth manufacturing suite at that facility for production of Recombinate AHF.

A Webcast of today's conference is accessible from a link on Baxter's Web site at www.baxter.com. Please refer to Baxter's Web site for additional information.

Baxter International Inc.is a global medical products and services company that, through its subsidiaries, provides critical therapies for people with life-threatening conditions. Baxter's products and services in bioscience (biopharmaceuticals, vaccines, biosurgery products and blood therapies), medication delivery and renal therapy are used by health-care providers and their patients in more than 100 countries.

This news release contains forward-looking statements that involve risks and uncertainties, including technological advances in the medical field, product demand and market acceptance, the effect of economic conditions, actions of regulatory bodies, the impact of competitive products and pricing and other risks detailed in the company's filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions made by management of the company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements.

Baxter and Recombinate are trademarks of Baxter International Inc.

FOR ADDITIONAL INFORMATION:

	Media Contacts: Deborah Spak, (847) 948-2349   Investor Contacts: Neville Jeharajah, (847) 948-2875 Mary Kay Ladone, (847) 948-3371