News Release

STRONG FIRST QUARTER POSITIONS BAXTER WELL TO MEET FULL YEAR 2002 COMMITMENTS

Growth Momentum Continues in First Quarter with Sales Growth of 11 Percent and EPS Growth of 17 Percent

Innovative, New Hemophilia Therapy On Track with Completion of Pivotal Phase III Recombinant Factor VIII Clinical Trials

DEERFIELD, ILL., April 18, 2002 -- Baxter International Inc. (NYSE:BAX) today reported strong growth in sales and earnings in the first quarter.

Sales advanced 11 percent to $1.95 billion, up from the $1.76 billion reported for the same period last year, fueled by increased sales of the company's recombinant and plasma-derived hemophilia products, as well as growth in its vaccines, oncology and drug delivery businesses. Without the impact of foreign exchange, Baxter's sales grew 14 percent. Domestic sales increased 12 percent, while international sales rose 10 percent (or 15 percent excluding the impact of foreign exchange). BioScience sales rose 18 percent in the quarter, totaling $746 million. Sales of Medication Delivery products grew 10 percent to $739 million, while Renal sales advanced 2 percent to $465 million.

Baxter's net income in the quarter rose 18 percent to $253 million, from the $214 million reported last year (before a 2001 accounting change). Earnings per diluted share grew 17 percent to $0.41, an increase from the $0.35 per share reported last year.

"Our strong financial performance for the quarter reflects our focus and discipline around operational excellence and our commitment to achieve growth that is sustainable, profitable and capital efficient. We continue to benefit from the groundwork we've laid with expanded manufacturing capacity, continued successful integration of acquisitions, and advancement of key new technologies like our protein-free recombinant manufacturing, vero-cell vaccine and drug delivery platforms," said Harry M. Jansen Kraemer, Jr., chairman and chief executive officer.

BioScience Powers Growth

The company's new, state-of-the-art recombinant treatment for hemophilia achieved an important milestone in the first quarter with completion of its pivotal Phase III clinical trials. The company expects to file its regulatory submission for the U.S. in the second quarter, and for Europe in the third quarter of 2002. The only product of its kind, this new recombinant Factor VIII excludes any added proteins or raw materials derived from human or animal sources in the manufacture, purification and formulation of the final product. The product was developed to virtually eliminate the theoretical risk of transmission of infectious agents potentially associated with products that contain human or animal-derived additives. Factor VIII, or antihemophilic factor, is the protein in human blood that is critical for proper blood coagulation and is deficient in people with hemophilia A.

Baxter's vaccines business remained in the spotlight in the first quarter, with the achievement of several important milestones. During the quarter, Baxter produced bulk smallpox vaccine for the company's partner, Acambis Inc., on behalf of the U.S. Department of Health and Human Services.

Baxter recently received a contract with the Ministry of Health in the Netherlands for more than 2.5 million doses of NeisVac-C vaccine, which is used for the prevention of Group C meningococcal meningitis. Under the contract, Baxter will provide the vaccine during the second and third quarters of this year.

Last month, Baxter announced that it had received regulatory approval in the Netherlands for its new InfluJect influenza vaccine, and unveiled final plans for construction of two state-of-the-art vaccine production facilities in Krems, Austria, and Bohumile, Czech Republic. Both the smallpox and influenza vaccines are produced using Baxter's vero-cell platform, which offers such advantages as a protein- and serum-free production medium, and higher purity without antibiotics, egg proteins or mercury-containing preservatives, while also providing significant improvements in production yields.

Baxter's BioSurgery business announced plans to acquire Fusion Medical Technologies, Inc., a company that develops and commercializes proprietary products used to control bleeding during surgery. The companies expect to complete the transaction in early May, assuming Fusion shareholders approve the acquisition at a special meeting to be held on May 3.

Other First Quarter Highlights

The company also announced during the quarter its plans to purchase the parenteral intravenous business of Wockhardt Lifesciences, a leading manufacturer of IV solutions in India, and expanded its Renal product portfolio with a licensing agreement with PrisMedical for sterile water technology and a co-promotion relationship with Watson Pharmaceuticals for an intravenous iron product used in the treatment of iron deficiency anemia in patients with kidney disease.

Also during the quarter, Baxter was recognized for several corporate citizenship initiatives benefiting Baxter team members, the environment and communities throughout the world. Baxter's Mountain Home, Arkansas, manufacturing facility was recognized as a STAR worksite by the U.S. Occupational Safety and Health Administration. For the third consecutive year, the company's facility in Aibonito, Puerto Rico, was recognized as one of the 20 Best Employers in Puerto Rico, and separately Baxter was recognized within Vienna, Austria, as Employer of the Year. In addition, the Baxter International Foundation, the philanthropic arm of Baxter International Inc., awarded more than $1 million in grants and matching gifts during the first quarter to recipients in nine countries. Baxter also helped launch the Children's World Blood Bank as a major sponsor, assisting in that organization's efforts to save the lives of children by giving extra blood donated in the United States to children in countries lacking a well-developed infrastructure for collecting, storing and screening blood and blood components.

2002 Financial Commitments

"We are very excited about the milestones we've achieved in the first quarter, and are on track to achieve those planned for the remainder of the year," Kraemer said, adding that the company is well positioned to meet its 2002 financial commitments of sales growth in the low teens, earnings per share growth in the mid-teens and operational cash flow of at least $500 million.

"With our focus on accelerating growth -- through new technologies, product launches and strategic partnerships -- we are confident that we will achieve our growth commitments this year, and be positioned well for the long-term with sustainable competitive advantage," Kraemer stated.

Baxter International Inc. (NYSE:BAX) is a global health care company that, through its subsidiaries, provides critical therapies for people with life-threatening conditions. Baxter's bioscience, medication delivery and renal products and services are used to treat patients with some of the most challenging medical conditions including cancer, hemophilia, immune deficiencies, infectious diseases, kidney disease and trauma.

A webcast of Baxter's first quarter conference call for investors can be accessed live from a link on Baxter's website at www.baxter.com beginning at 10:00 a.m. CDT on April 18, 2002. The company will be making investor presentations on the following dates during the second quarter of 2002: May 9 and June 10. Please visit Baxter's website for additional information about these events, as well as the company's Annual Meeting of Stockholders, which will be held on May 7.

(Baxter, InfluJect and NeisVac-C are 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.

FOR ADDITIONAL INFORMATION:

	Media Contacts: Deborah Spak, 847-948-2349 Sally Benjamin Young, 847-948-2304 Investor Relations Contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371