News Release

MAYO CLINIC TO ADVANCE XENOTRANSPLANTATION RESEARCH WITH GRANT FROM BAXTER

ROCHESTER, Minn. and DEERFIELD, Ill., March 6, 2003 -- The Mayo Clinic and Baxter Healthcare Corporation announced today a special grant from Baxter to Mayo, under which Mayo will assume full control and ownership of Baxter's xenotransplantation program and will pursue, direct and advance research in the field.

The program will be under the direction of Christopher McGregor, M.B., FRCS, director of the Mayo Clinic William J. von Liebig Transplant Center.

Since 1997, Baxter and Mayo have collaborated on research into xenotransplantation -- the transplantation of animal organs into humans. Over the years, Baxter and Mayo have genetically modified pigs to make their organs more acceptable to the human immune system, and have developed a variety of immunosuppressive regimes for the recipient. While research into the feasibility of xenotransplantation is still in its infancy, Baxter and Mayo have made significant strides. Through the use of genetically modified pig organs and a proprietary, specialized immunosuppressant drug, the organizations have achieved survival in excess of 100 days in transplants into primates.

Under the agreement, Baxter will grant to Mayo its specially designed transgenic animal and xenotransplantation research center, a state-of-the-art facility designed to meet all "good manufacturing practices" of the U.S. Food and Drug Administration. Baxter also is donating to Mayo its transgenic animals and all of its proprietary technology relating to the production, cloning, screening and use of the transgenic pigs. The total value of the donation of intellectual and physical property and cash has been estimated by independent analysis at approximately $69 million.

Baxter is retaining rights to NEX-1285™, a proprietary and specialized immunosuppressant drug that was developed by the company, and Baxter has acquired from Mayo the right of first offer on any commercialization activities that result from the continuing research. NEX-1285™ has played an important role in the pre-clinical research to date, and Baxter will continue to supply the investigative drug to Mayo and grant rights for the use of this drug in the continuing research. Mayo will own and control all of the other technologies related to the xenotransplantation program.

"We have made enormous strides in advancing the science and viability of xenotransplantation in collaboration with the Mayo team," said William F. Owen, Jr., M.D., chief scientist of Baxter's Renal business. "The grant allows for this great work to continue in an independent manner, while optimizing our own research and development resources within Baxter."

"There is a very pressing clinical need for transplantation. People are dying while waiting for an organ donor," said Dr. McGregor. "We are excited to have this opportunity to continue this important research, and someday benefit the many patients needing donor organs."

According to the United Network for Organ Sharing, in 2001 alone nearly 6,500 patients died while awaiting an organ for transplantation. Worldwide, the demand for transplant operations is increasing by about 15 percent per year, while the number of donated organs has remained static. Over the years, many different animals have been looked at as potential donors to bridge this increasing gap and help patients suffering from organ failure and other deadly diseases. Because of physiological compatibility, breeding characteristics and other factors, pigs are now viewed as the preferred candidate for xenotransplantation.

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