News Release

BAXTER EXPECTS LOW-DOUBLE-DIGIT SALES, MID-TEENS EPS GROWTH FOR FULL-YEAR 2002

Company Projects Similar Sales, EPS Growth for Full-Year 2003

Baxter Extends Maturity of Equity Forward Agreements, Intends to Settle in Advance of Maturity

DEERFIELD, Ill., October 3, 2002 -- Baxter International Inc. (NYSE:BAX) today stated that it expects to achieve sales growth in the low double digits, mid-teens growth in diluted earnings per share, and generate approximately $500 million in operational cash flow for full-year 2002. The company also announced today that it expects to achieve similar growth in sales and earnings for full-year 2003.

In light of the current competitive environment for plasma-derived therapeutics, the company expects sales growth in the third and fourth quarters, and full-year 2002 to be in the low-double digits. This is slightly below the company's original expectation of low-teens sales growth for full-year 2002.

Baxter expects to achieve similar sales and earnings growth for full-year 2003. Specifically, in 2003 the company expects to achieve:

• Sales growth in the low-double-digits;
• Earnings-per-diluted-share growth in the mid-teens; and
• Operational cash flow of approximately $500 million.

Baxter also announced today that the majority of the company's equity forward agreements now mature in 2003, with no additional changes to the terms. These forward agreements are used to partially offset the potentially dilutive effect of employee stock options and require the company to purchase its common stock from third parties on specified future dates at specified prices. As of December 31, 2001, Baxter had agreements related to 31 million shares, which now mature in 2003. Baxter may, at its option, terminate and settle these agreements early, at any time before maturity.

"We've used these forward agreements very effectively over the last several years to offset the dilution of employee stock options," said Steven Meyer, Baxter's corporate treasurer. "Given our strong liquidity, our intention is to exit all of these equity forward contracts over the next several months."

Baxter is scheduled to announce its third quarter, 2002 financial results on October 17, 2002, and will be conducting its third quarter conference call for investors on that date. The webcast can be accessed live from a link on Baxter's website at www.baxter.com beginning at 8:00 a.m. CDT on October 17, 2002. Please visit Baxter's website for additional information about this event.

Baxter International Inc. 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.

This news release contains forward-looking statements that involve risks and uncertainties, including technological advances in the medical field, product demand and market acceptance, actions of regulatory bodies, the impact of competitive products and pricing, 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 Investor Contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371