News Release

BAXTER TO ADVANCE ITS POSITION IN ONCOLOGY WITH ACQUISITION OF ASTA MEDICA ONCOLOGY

Acquisition of ASTA Medica Oncology Complements Baxter's Current
$200 Million Oncology Portfolio, Provides Significant Opportunities for Growth

DEERFIELD, ILLINOIS and ZURICH, SWITZERLAND, August 7, 2001 - Baxter International Inc. (NYSE:BAX) announced today that it has signed an agreement with Dusseldorf-based Degussa AG to acquire the company's ASTA Medica Oncology subsidiary, Asta Medica Onkologie GmbH & CoKG, for approximately 525 million Euros (U.S. $470 million).

ASTA Medica Oncology develops, produces and markets oncology products worldwide. The company's products are marketed in more than 100 countries, and have a significant market presence in Europe, North America and Latin America. ASTA Medica Oncology's pro forma sales, primarily of chemotherapy agents, totaled approximately US$130 million in 2000. The company's leading products include Endoxan (cyclophosphamide), Holoxan and Ifex (ifosfamide), and Uromitexan and Mesnex (mesna).

"This acquisition is an excellent fit, both strategically and economically," said Harry M. Jansen Kraemer, Jr., Baxter's chairman and chief executive officer. "ASTA Medica Oncology is the perfect complement to our existing oncology portfolio. They bring not only solid relationships with medical oncologists throughout the world and great market presence, but also exciting near- and long-term drug development opportunities and world-class production facilities."

Pending approval by relevant authorities, the companies are targeting a transaction closing before the end of 2001. In accordance with Generally Accepted Accounting Principles, Baxter will allocate a significant portion of the purchase price to in-process research and development when the acquisition is closed, resulting in a one-time charge to 2001 earnings. Baxter expects the acquisition to be accretive to 2002 earnings.

Baxter's Oncology Portfolio
Baxter's products already play an important role in the treatment and medical support of patients with cancer through its biopharmaceutical, transfusion therapy, drug delivery, anesthesia/critical care, nutrition and pharmacy compounding businesses. Baxter's sales of products for use in oncology are expected to be approximately $200 million in 2001, and following completion of this acquisition Baxter expects its sales to the oncology market to be approximately $400 million in 2002.

Baxter's current oncology portfolio includes several chemotherapeutics, as well as pain management and nutritional products and systems for administering those therapies. Baxter's Gammagard S/D Immune Globulin Intravenous (Human) Solvent Detergent Treated is used to provide immune system support for patients with B-cell Chronic Lymphocytic Leukemia.

Advances in Oncology Play to Baxter's Strengths
Oncology represents one of the fastest growing segments in health care, particularly as the world's population ages and life expectancies increase. Cancer is the second largest cause of death in the world, with more than four million cases diagnosed annually.

"We believe that the oncology market presents significant opportunities for growth, and Baxter is extremely well positioned to capitalize on these, " Kraemer continued. "There is tremendous unmet need and the market for oncology therapeutics and related products is growing at 15 percent annually. At the same time, much innovation is occurring in the treatment and prevention of cancers, including increasing use of combination and cellular therapies which require complex delivery systems and development of vaccines. These advances play right to Baxter's core strengths, and we are uniquely positioned to capitalize on this growth."

About ASTA Medica Oncology
Asta Medica Onkologie GmbH & CoKG is a Frankfurt, Germany-based wholly-owned subsidiary of Degussa AG. It is one of four pharmaceutical businesses created by the restructuring of Degussa's pharmaceutical subsidiary, ASTA Medica AG. The oncology unit employs approximately 900 people worldwide, with the majority of those individuals located in Frankfurt and Halle/Westphalia, Germany.

About Baxter International Inc.
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 the areas of bioscience (including 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.

Baxter executives will be conducting a conference call for investors at 8:00 a.m. CDT today. The conference call can be accessed live from a link on Baxter's web site at www.baxter.com beginning at 8:00 a.m. CDT on August 7, 2001, and will be available for replay following the call. Please visit Baxter's Web site for additional information regarding this Webcast.

(Baxter and Gammagard are trademarks of Baxter International Inc. and its affiliates. Endoxan, Holoxan, Uromitexan, Mesnex and Ifex are trademarks of ASTA Medica.)

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, foreign currency exchange rates 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.

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	Media Contacts: Deborah Spak, (847) 948-2349 Patricia O'Hayer, 011-322-650-1924 Investor contacts: Neville Jeharajah, (847) 948-2875 Mary Kay Ladone, (847) 948-3371 Degussa AG Home Page