News Release

BAXTER HEALTHCARE CORPORATION AND GENETICS INSTITUTE, INC. ANNOUNCE SETTLEMENT

Deerfield, Ill. and Madison, NJ, April 17, 2001 - Baxter Healthcare Corporation, the principal United States operating subsidiary of Baxter International Inc. (NYSE:BAX), and Genetics Institute, Inc. ("GI"), a unit of American Home Products Corporation (NYSE:AHP) announced today that they have settled the action brought by Baxter against GI in Delaware Chancery Court. Under the terms of the settlement, GI agreed to sell to Baxter, and Baxter agreed to buy from GI, all of the bulk Recombinate manufactured by GI in certain designated production facilities. Recombinate is Baxter's widely-used treatment for hemophilia. Other terms of the settlement were not disclosed.

The companies are pleased to have resolved this dispute in a way that clarifies their relationship and assures the availability to Baxter of Recombinate manufactured by GI through 2007. The termination of this litigation is expected to result in the restoration of a more cooperative relationship between GI and Baxter.

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 transfusion therapies), medication delivery and renal therapy are used by health-care providers and their patients in more than 100 countries.

American Home Products Corporation is one of the world's largest research-based pharmaceutical and health-care products companies. It is a leader in the discovery, development, manufacturing and marketing of prescription drugs and over-the-counter medications. It also is a global leader in vaccines, biotechnology and animal health care.

Recombinate and Baxter are trademarks of Baxter International, Inc. and are registered in the U.S. Patent and Trademark Office.

FOR ADDITIONAL INFORMATION:

	Media Contacts: Deborah Spak, Baxter Healthcare Corporation, (847) 948-2349 George Rafeedie, Baxter Healthcare Corporation, (847) 948-3675 Lowell Weiner, American Home Products, (973) 660-5013   Investor Contacts: Neville Jeharajah, Baxter Healthcare Corporation, (847) 948-2875 Mary Kay Ladone, Baxter Healthcare Corporation, (847) 948-3371 Justin Victoria, American Home Products (973) 660-5340