News Release

BAXTER ANNOUNCES AGREEMENTS TO EXPAND RENAL PRODUCT PORTFOLIO

Licensing Agreement with PrisMedical for Sterile Water Technology has Potential to Enhance Convenience and Viability of Home-Based Renal Therapy

Company Announces Co-Promotion Agreement with Watson Pharmaceuticals for Intravenous Iron Product Used in Treatment of Complications Associated with Kidney Disease

DEERFIELD, Ill., March 14, 2002 -- Baxter Healthcare Corporation announced today two agreements that will expand its renal product portfolio.

First, the company has entered into a licensing agreement with privately-held PrisMedical Corporation for exclusive, worldwide rights to that company's sterile fluid technology for all renal applications. Baxter and PrisMedical will co-develop products based on PrisMedical's technology platform for producing sterile, dialysis-quality water at home or point-of-use, using existing potable water sources.

"Home dialysis requires a high volume of sterile fluids. PrisMedical's technology holds tremendous promise for renal patients worldwide because of its potential to enhance the feasibility and convenience of dialysis at home and in other settings in markets that do not otherwise have sufficient infrastructure to support this therapy," said Al Heller, president of Baxter's Renal business.

Baxter also announced today that it has reached an agreement in principle with Watson Pharmaceuticals, Inc. for the co-promotion of Ferrlecit® in the United States. Ferrlecit (sodium ferric gluconate complex in sucrose injection) is a prescription IV iron product used for the treatment of iron deficiency anemia in chronic hemodialysis patients receiving supplemental epoetin therapy.

Baxter is a leading provider of renal products and services worldwide. In 1956, the company introduced the first disposable coil dialyzer, a development that greatly enhanced the use and application of hemodialysis. Nearly 20 years later, Baxter was one of the first companies to introduce peritoneal dialysis.

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

FOR ADDITIONAL INFORMATION:

	Media Contacts: Lisa Scheff, 847-948-4107 Deborah Spak, 847-948-2349 Investor contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371