News Release

BAXTER AND INTERNATIONAL SOCIETY OF NEPHROLOGY ANNOUNCE FIRST ROUND OF RENAL DISCOVERIES GRANT PROGRAM WINNERS

DEERFIELD, Ill., July 31, 2002 -- Baxter Healthcare Corporation in collaboration with the International Society of Nephrology (ISN) today announced the first round of Renal Discoveries grant program recipients representing seven countries across the globe. Renal Discoveries is an extramural grant program designed to promote scientific advancement in the field of kidney disease and its treatment.

"I congratulate the 10 grant winners on their outstanding science, which will contribute significantly to the advancement and knowledge of kidney disease and its clinical applicability," said Lee W. Henderson, M.D., F.A.C.P, the Extramural Grant Program founder. "Our hope and our goal is that the patient becomes the ultimate winner, as he or she may benefit from new therapies developed as a result of this grant program."

In April 2002, 96 applicants from 21 countries submitted basic or applied research proposals on the topic of Inflammation and Kidney Disease. An independent medical advisory board -- whose membership rotates to ensure breadth of scientific judgment -- evaluated all applications, judging them strictly on scientific merit. The board, comprised of members from the ISN, selected 10 outstanding proposals and awarded up to $50,000 USD per year for the basic clinical research grants and up to $75,000 USD per year for the three-year applied research grants. Those granted an applied clinical research award are eligible to apply for increased funding up to $300,000 USD in years two and three. Grant winners include:

1. Laurent Baud, M.D., Ph.D., INSERM, Paris, France. "Proteases Involved in the Activation of Latent Transforming Growth Factor-b (TGF-b) Play a Role in the Development of Renal Inflammation."
2. Giacomo Garibotto, M.D., University of Genoa, Genoa, Italy. "Effects of Low-grade Chronic Inflammation on Muscle Protein Turnover in Patients with End-stage Renal Disease."
3. Enyu Imai, M.D., Ph.D., Osaka University Graduate School of Medicine, Osaka, Japan. "Proteinuria Induced Inflammatory Reaction in Proximal Tubule."
4. Hui Yao Lan, M.D., Ph.D., Baylor College of Medicine, Houston, Texas. "Role of Smad Signaling in the Pathogenesis of Hypertensive Nephropathy and A Novel Therapeutic Potential Using Ultrasound-Microbubble Gene Transfer of Inducible Smad7."
5. Christopher Y. Lu, MD, Univ. Texas Southwestern Medical Center at Dallas, Dallas, Texas. "RAE 1, NKG2D, and Innate Leukocytes in Ischemic Acute Renal Failure."
6. Robert H. Mak, M.D., Ph.D., Oregon Health & Science University, Portland, Oregon. "Cytokine Signaling and Cachexia in Uremia."
7. Andreas Pierratos, M.D., Humber River Regional Hospital, Toronto, Ontario, Canada. "Impact of Nocturnal Hemodialysis on the Malnutrition -- Inflammation -- Atherosclerosis Axis."
8. Gregory H. Tesch, BAppp, Sc, MSc, Ph.D., Monash Medical Centre, Clayton, Victoria, Australia. "Stress Activated Protein Kinase Signaling: a Key Pathway for Both Inflammation and Fibrosis in Peritoneal Membrane Dysfunction?"
9. David C. Wheeler, MB, ChB, M.D., Royal Free and University College Medical School, London, England, United Kingdom. "Molecular Mechanisms and Consequences of LDL Receptor Dysregulaion by Inflammatory Cytokines."
10. Veronique Witko-Sarsat, Ph.D., INSERM, Paris, France. "Role of Myeloperoxidase and its Derivatives, the Advanced Oxidation Protein Products (AOPP), in Chronic Renal Failure."

"The ISN strongly encourages scientists from across the globe to apply for a grant from the Renal Discoveries program," said Australia's Professor Robert C. Atkins, ISN's president. "By applying for a grant, a scientist is helping to expand knowledge about kidney disease and its treatment -- a contribution that enriches lives and learning."

Renal Discoveries continues Baxter's support of the study of kidney disease, including pathophysiology and treatment options, by building on a previous grant program that distributed more than $25 million to 221 grant winners in 20 countries. It provides needed resources to enable scientific researchers to pursue broad, long-term basic and applied studies. Such studies are critical to enhancing the collective knowledge base on kidney disease and treatment.

Requests for proposals for the program's Round 2 topic, Cardiovascular Morbidity and Mortality in Kidney Disease, have been distributed worldwide. Round 2 applications are due by October 11, 2002. More information on Renal Discoveries, including instructions for preparing a grant application, can be found at www.baxter.com/egp and www.isn-online.org.

Renal Discoveries is modeled after grant programs managed by the United States National Institutes of Health, with topics announced twice each year and detailed writing instructions to guide applicants through the process. An independent medical advisory board evaluates applications based on scientific merit.

The International Society of Nephrology is a truly global organization. Its membership consists of individual kidney specialists in practically every country. It has more than 8,000 members worldwide. The Society's goal is the worldwide advancement of education, science and patient care in kidney disease.

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 the first company to introduce continuous ambulatory peritoneal dialysis products.

Baxter Healthcare Corporation is the principal domestic operating subsidiary of Baxter International Inc. (NYSE: BAX), 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.

(Renal Discoveries is a trademark of Baxter International Inc.)

FOR ADDITIONAL INFORMATION:

	Media Contact: Lisa Scheff, 847-948-4107