News Release

BAXTER TO LAUNCH VACCINE IN GERMANY TO PROTECT AGAINST TICK-BORNE ENCEPHALITIS

Deerfield, IL, June 19, 2002 -- Baxter International Inc. announced today that a subsidiary's tick-borne encephalitis vaccine, FSME-IMMUN 0.5 ml, received approval for adult use in Germany from the Paul Ehrlich Institute (PEI), the regulatory authority in Germany.

"This new product license positions us well to continue growing our vaccines business, and highlights the continued progress we are making toward our growth objectives by meeting our clinical and regulatory milestones," said Thomas Glanzmann, senior vice president and president of Baxter's BioScience business.

Tick-borne encephalitis (TBE) is caused by viral infection transmitted by tick bites in specific areas in Europe and the Eastern part of Russia. In Germany, up to several hundred TBE cases occur each year among individuals who are not vaccinated against the disease. The virus, once contracted, can cause severe damage to the central and peripheral nervous system with long-term medical complications. One to two percent of infected patients die from the infection. Today patients have no alternatives for treatment, so prevention is of utmost importance for people at risk for tick bites in endemic areas.

Baxter was the first company in Western Europe to bring a tick-borne encephalitis vaccine to market, in 1976. Baxter modified the manufacturing process for the vaccine in 2001, which required further clinical trials to demonstrate safety and effectiveness. Clinical trials of the vaccine in children are still ongoing in Germany and approval is expected in 2004.

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 currently is licensed in 15 countries, and the company is participating in the production of approximately 155 million doses of smallpox vaccine, in conjunction with Acambis Inc. on behalf of the U.S. Department of Health and Human Services. Earlier this year, Baxter received regulatory approval in the Netherlands for InfluJect, a novel new influenza vaccine. The company is pursuing regulatory approval for InfluJect in other European countries in 2002 and 2003, and plans to initiate clinical trials in the United States in 2002.

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, 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 Contact: Deborah Spak, 847-948-2349 Investor Contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371