News Release

BAXTER TO ACQUIRE MANUFACTURING PLANT FROM ML LABORATORIES

DEERFIELD, Ill., March 20, 2003 -- Baxter Healthcare Corporation announced today that it has entered into a definitive agreement with ML Laboratories to acquire the company's icodextrin manufacturing facility in Liverpool, England for approximately $10 million. Icodextrin is the raw material used to manufacture Baxter's EXTRANEAL peritoneal dialysis (PD) solution, which was approved by the U.S. Food and Drug Administration (FDA) in December 2002 for sale in the United States. EXTRANEAL, also awaiting approval in Japan, is currently approved in 34 countries, with more than 9,000 end-stage renal disease (ESRD) patients using the solution worldwide.

Producing its own source of icodextrin will help Baxter ensure an adequate supply of EXTRANEAL to meet market demand in the years ahead, according to Alan L. Heller, Baxter senior vice president and president of the company's Renal business. "With the recent launch of EXTRANEAL in the United States and the product's pending approval in Japan, we expect demand for EXTRANEAL to increase significantly," Heller says. "This allows us to secure an important source of raw material for EXTRANEAL. Having our own plant provides cost and quality-control benefits as well."

EXTRANEAL offers the potential for increased removal of fluid from the bloodstream during dialysis over currently available 1.5 percent and 2.5 percent dextrose solutions during "long dwell" dialysis exchanges. "Dwell" is the amount of time dialysis solution remains in the abdominal cavity during PD therapy. "Exchange" refers to the process of discarding used dialysis solution and instilling fresh solution into the abdominal cavity. Fluid removal is a cornerstone of dialysis therapy, since the patient's native kidneys have limited, if any, residual ability to eliminate excess fluid from the bloodstream.

The transaction, which is immaterial to Baxter's earnings, is expected to close in the first half of 2003 and is subject to ML Laboratories shareholders' approval.

Baxter Healthcare Corporation is the principal domestic 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.

For more information on Baxter's Renal business and background information on end-stage renal disease and its treatments, please visit www.baxter.com.

(Baxter and EXTRANEAL are trademarks of Baxter International Inc. and its affiliates.)

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