News Release

BAXTER COMPLETES ITS 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, November 1, 2001 - Baxter International Inc. (NYSE:BAX) announced today that it has completed its acquisition of ASTA Medica Onkologie GmbH & Co KG, a subsidiary of Düsseldorf-based Degussa, AG 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 U.S. $130 million in 2000. The company's leading products include cyclophosphamide (marketed as Endoxan), ifosfamide (marketed as Holoxan and as Ifex in the United States), and mesna (marketed as Uromitexan and as Mesnex in the United States).

"We believe our combined strengths will greatly expand and enhance our ability to serve our customers worldwide, and will provide the foundation for sustainable growth and success in the dynamic oncology market," said Cynthia Collins, general manager of Baxter Oncology. "ASTA Medica Oncology brings 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."

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. The company's current oncology portfolio includes several chemotherapeutics, as well as systems for the administration of pain management, nutritional products and chemotherapies. Baxter's sales of products for use in oncology are expected to be approximately $200 million in 2001, with 2002 sales increasing to approximately $400 million.

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.

"In alignment with Baxter's vision, which is to provide critical therapies for life-threatening conditions, we have determined that oncology represents the next logical evolution of our business that will continue to build upon our core competencies," Collins said.

"There is currently tremendous unmet need in the market for oncology therapeutics and related products. At the same time, tremendous innovation is occurring in the treatment and prevention of cancers. These advances, including increasing use of combinations of therapies, as well as enhancements in delivery systems and development of biopharmaceuticals and vaccines, play right to Baxter's core strengths," added Collins. "We believe we are uniquely positioned to capitalize on this growth."

In accordance with Generally Accepted Accounting Principles, Baxter will allocate a significant portion of the purchase price to in-process research and development, resulting in a one-time charge to fourth quarter 2001 earnings. Baxter expects the acquisition to be accretive to 2002 earnings.

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.

(Endoxan, Holoxan and Uromitexan are now trademarks of Baxter International Inc. and its affiliates.)

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.

Also see:

German translation

FOR ADDITIONAL INFORMATION:

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