News Release

BAXTER TO FURTHER INCREASE MANUFACTURING CAPACITY FOR THERAPEUTIC PROTEINS

DEERFIELD, Ill., July 12, 2001 - Baxter International Inc. (NYSE:BAX) announced today that it will invest an additional $70 million to further expand and upgrade its BioScience facilities in California, Michigan, Italy, Belgium and Austria. The expansions will provide greater flexibility in manufacturing and will increase production capacity for the company's plasma-derived therapeutic proteins.

"We will be able to better leverage our manufacturing capabilities, and continue to deliver innovative products to patients around the world, particularly those therapies which are in short supply," said Thomas Glanzmann, senior vice president and president of Baxter's BioScience business.

This investment is the latest in a series Baxter has made over the last several years to expand production capacity. Since 1995, Baxter has invested significantly more than $500 million in the expansion and upgrading of its BioScience facilities, and plans to spend an additional $500 million over the next several years. In February of this year, a Baxter subsidiary acquired Sera-Tec Biologicals L.P., which owns and operates 80 plasma collection centers. This increased the total number of plasma collection centers owned by Baxter or its subsidiaries to 111 worldwide and provides Baxter with a consistent, stable supply of source plasma for processing into life-saving plasma-based therapies.

"This additional investment positions us to maximize our technology platforms, and is a clear commitment to manufacturing excellence and continued regulatory compliance," Glanzmann said.

Baxter produces therapeutic proteins from plasma to treat hemophilia, immune deficiencies and other blood-related disorders. These include coagulation factors, immune globulins, albumin and wound-management therapies.

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.

This news release contains forward-looking statements that involve risks and uncertainties, including those related to timing or results of pending or future clinical trials, actions by regulatory and governmental bodies, technological advances in the medical field, product demand and market acceptance, the effect of economic conditions and other risks detailed in the companies' filings with the Securities and Exchange Commission. These forward-looking statements are based on estimates and assumptions made by management of the companies 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.


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