News Release

Baxter Healthcare Corporation to Receive Prestigious Shingo Prize for Excellence in Manufacturing


Mountain Home, Ark., June 7, 2001 - Baxter Healthcare Corporation's Mountain Home, Arkansas, facility will be awarded the 2001 Shingo Prize for Excellence in Manufacturing tonight at the annual Shingo Prize conference in Dearborn, Michigan. The prize, administered by Utah State University, recognizes manufacturers in the United States, Canada and Mexico that demonstrate excellence in manufacturing leading to superior customer satisfaction and business performance.

The Baxter Mountain Home plant has been recognized for its expertise in lean manufacturing, or reduction of waste in manufacturing. This facility specializes in the manufacture of medical devices such as human blood/plasma separation components, kidney dialysis products and intravenous products used in the administration of medicine and nutrition. The use of lean production has reduced lead-time by 84 percent and improved on-time delivery to more than 99 percent.

The Shingo Prize, established in 1988, is named in honor of the late Toyota Motor Company "engineering genius" Dr. Shigeo Shingo. Dr. Shingo helped create, train and write about many aspects of the renowned Toyota Production System and related production systems.

"Operational excellence in manufacturing is one of our highest priorities for Baxter around the world," said Mike Gatling, Baxter corporate vice president, global manufacturing operations. "We are proud of our Mountain Home facility for achieving such a high honor. Both Mountain Home and our North Cove, North Carolina, plant, a 2000 Shingo Prize recipient, have set the bar for our manufacturing operations worldwide by producing life-saving medical products at the highest quality with minimal waste."

Vick Crawley, Mountain Home plant manager, said, "This is a great honor for our team. They are all dedicated to providing the best quality product for our customers and patients in need. We are proud of this distinction and look forward to improving on our quality and manufacturing excellence."

Applicants of the Shingo Prize are evaluated on manufacturing quality, productivity and process improvement through a comprehensive award submission, and if selected as a finalist, an on-site evaluation. In addition to Baxter, other 2001 Shingo Prize recipients include Benteler Automotive, Ford Motor Co., Freudenberg-NOK and Johnson Controls, Inc. All recipients will be recognized tonight at the Shingo Prize conference. For more information, visit www.shingoprize.org.

Baxter Healthcare Corporation is the principal U.S. operating subsidiary of Baxter International Inc. (NYSE:BAX). Baxter 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 and transfusion therapies), medication delivery and renal therapy are used by health-care providers and their patients in more than 100 countries.

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	Media Contacts: George Rafeedie (847) 948-3675 Deborah Spak, (847) 948-2349