News Release

BAXTER CONTINUES INVESTIGATION INTO AMERICAN RED CROSS BLOOD PACK UNITS

Preliminary Testing Indicates Matter Found by American Red Cross Southern Region is Blood-Cell Related

DEERFIELD, Ill, February 3, 2003 -Baxter Healthcare Corporation today announced results of its preliminary investigation into particulate or cellular matter reportedly found in approximately 100 Blood Pack Units in some areas of the southeast United States. No adverse patient events were reported in association with the particulate or cellular matter.

Immediately upon receiving samples from the American Red Cross' Southern Region in Atlanta on Friday, Baxter scientists and engineers initiated an analysis of the particulate matter. Preliminary analysis of the samples received from the American Red Cross following blood collection indicates that the particulate matter is blood-derived in nature, likely a very small fibrin clot containing white blood cells and platelets. These are natural components of blood, which can occur to varying degrees in stored blood under normal conditions.

Clotting and aggregation of cellular material is a normal function of blood. It is for this reason that filters are used in the transfusion or administration of blood and blood components into patients, and that blood and blood components must be carefully collected, processed and transfused within defined conditions.

"The safety of the blood supply, along with the safety of donors and patients, is critically important to us and we are taking this investigation very seriously," said Greg Young, president of Baxter Transfusion Therapies. "We are looking into all possible causes for the presence of this cellular matter, and will continue to work collaboratively with the American Red Cross, the U.S. Food and Drug Administration and the Centers for Disease Control in our ongoing investigation to ensure confidence in the continued safety of the blood supply."

Baxter, the American Red Cross, the Food and Drug Administration (FDA) and Centers for Disease Control (CDC) are continuing to explore a variety of factors that may have played a role in causing blood cells to clot or aggregate. The CDC testing to date has determined that the particulate material is not an infectious agent. Independent testing by all of these organizations and agencies will continue in order to determine the root cause.

Baxter International Inc., through its subsidiaries, assists health-care professionals and their patients with treatment of complex medical conditions, including cancer, hemophilia, immune disorders, kidney disease and trauma. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients' lives.

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