News Release

BAXTER ANNOUNCES THE LOCATIONS OF TWO NEW,
STATE-OF-THE-ART VACCINE PRODUCTION FACILITIES IN
AUSTRIA AND CZECH REPUBLIC

Company Receives Regulatory Approval in the Netherlands
for InfluJect Influenza Vaccine

DEERFIELD, Ill., March 11, 2002 -- Baxter International Inc. (NYSE:BAX) announced today the locations of two new state-of-the-art facilities for the production of cell-culture derived and recombinant vaccines. Additionally, Baxter announced it has received regulatory approval in the Netherlands for InfluJect, the company's novel new influenza vaccine. The two facilities, located near Vienna, Austria, and Prague, Czech Republic, will allow the company to significantly expand its vaccine production capacity and provide for the larger-scale commercial launch of InfluJect in Europe beginning in 2004. Last year Baxter announced its plans to grow its vaccines business through the expansion of its vaccine manufacturing capability.

Baxter will soon begin construction of a 154,462 square-foot (14,350 square-meter) facility in Krems, Austria, located approximately 31 miles (50 kilometers) west of Vienna. The facility will feature two production suites, one of which will be dedicated to production of Baxter's InfluJect influenza vaccine. When completed and licensed, the facility is expected to employ approximately 300 scientific and technical professionals and will be capable of producing Baxter's InfluJect vaccine, as well as a variety of cell-culture and recombinant vaccines.

The other facility, located in Bohumile, Czech Republic, approximately 19 miles (30 kilometers) east of Prague, will feature one production suite. Baxter recently acquired the site and partially completed facility through the purchase of assets belonging to the government entity SEVAC. When completed and licensed, the facility is expected to employ approximately 200 scientific and technical professionals.

"We believe the combination of these two new facilities will provide us with greater flexibility in responding to worldwide demand for specific vaccines and will position us well for the successful launch of InfluJect," said Thomas Glanzmann, senior vice president and president of Baxter's BioScience business. "The vaccines market is a significant growth opportunity for Baxter because of the increasing world population, greater globalization and resulting increased risk of spread of disease, and threats of bioterrorism. With the investments we have made in research and development of new vaccines, novel technology platforms and production capacity, we expect to grow our vaccines business into a $1 billion business by 2010."

The company has completed Phase III clinical trials for the InfluJect vaccine in Europe and, in addition to the regulatory approval received in the Netherlands, will pursue regulatory approval in other European countries in 2002 and 2003. Baxter also plans to initiate clinical trials for InfluJect in the United States in 2002.

Baxter's InfluJect will be produced using Baxter's proprietary vero cell technology, which enables Baxter to exclude any added proteins or raw materials derived from human or animal sources in the manufacture, purification and formulation of its vaccines. This vaccine platform has the potential to offer such advantages as a protein- and serum-free production medium, high yield and purity, and no antibiotics, egg proteins, or mercury-containing preservatives. Baxter has a broad pipeline of vaccines, with more than a dozen vaccines at all stages of development from pre-clinical to pre-launch, including influenza and various meningococcal combination conjugates. Baxter's NeisVac-C meningococcal vaccine was approved in the U.K. in 2000, and is licensed in 15 countries.

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, medication delivery and renal therapy are used by health-care providers and their patients in more than 100 countries. In addition to vaccines, Baxter's BioScience business develops and produces therapeutic proteins from plasma and through recombinant methods to treat hemophilia, immune deficiencies and other blood-related disorders, and biosurgery products.

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.

(Baxter, InfluJect and NeisVac-C are trademarks of Baxter International Inc. and its affiliates.)