News Release

BAXTER HIGHLIGHTS GROWTH INITIATIVES AT ANNUAL MEETING OF SHAREHOLDERS

Oakbrook Terrace, Ill., May 7, 2002 -- At its Annual Meeting of Shareholders here today, Baxter International Inc. (NYSE: BAX) highlighted plans for continued growth in 2002 and beyond.

Baxter Chairman and Chief Executive Officer Harry M. Jansen Kraemer, Jr. discussed Baxter's vision and growth strategy, reviewed 2001 achievements and shareholder return and highlighted growth initiatives for 2002 and beyond.

"We had a fantastic 2001, delivering total return to our shareholders of 23 percent for the year," Kraemer said. "We are looking forward to building on this momentum with continued focus on operational excellence, by leveraging and expanding Baxter's core competencies, and continuing to bring new products to the marketplace through internal development and alliances with biotechnology and pharmaceutical partners."

Kraemer added, "Our continued investment in advancing important technologies, our focus on strategic growth drivers and consistently meeting our commitments, will help us achieve our vision of being the global leader in providing critical therapies for people with life-threatening conditions."

Hemophilia Therapy Highlighted
Baxter's recombinant Factor VIII hemophilia therapy was highlighted during the meeting with a speech by Karen Smith, a Chicago mother of two boys with hemophilia, ages 13 and 10. Smith openly discussed her fears when her first son was diagnosed. "I kept thinking that I did not have a 'normal' baby that would grow up to do normal boy things," Smith said. "No playgrounds, no tree houses and definitely no football."

But with help from her doctors and Recombinate Antihemophilic Factor, Baxter's recombinant Factor VIII hemophilia therapy, Smith's two boys are leading very active lives. "What a difference Recombinate has made to our quality of life. With Baxter's hemophilia therapy, my husband and I don't have to focus on our boys' hemophilia. Instead, we can just enjoy raising two healthy, responsible, good and normal kids. They both are smart, crazy about video games, don't like to do homework, happen to have hemophilia, don't clean their rooms and love to play baseball!"

Shareholder Actions
Also at the meeting, Baxter's shareholders:

• Authorized an increase in the amount of shares of common stock that Baxter is authorized to issue from one billion to two billion;
• Re-elected Kraemer, Joseph P. Martin, M.D., Ph.D., Thomas T. Stallkamp and Fred L. Turner to three-year terms as directors;
• Ratified the appointment of PricewaterhouseCoopers LLP as independent accountants for Baxter in 2002;
• Approved Baxter's officer compensation program; and
• Did not approve a shareholder proposal related to cumulative voting in the election of directors.

About Baxter
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.

(Baxter and Recombinate are trademarks of Baxter International Inc.)

FOR ADDITIONAL INFORMATION:

	Media Contacts: Deborah Spak, 847-948-2349 George Rafeedie 847-948-3675 Investor Contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371