News Release

BAXTER ACHIEVES FIRST QUARTER SALES AND EPS GOALS

DEERFIELD, Ill., April 16, 2003 -- Baxter International Inc. (NYSE: BAX) today reported that it achieved its sales and diluted earnings per share (EPS) goals for the first quarter of 2003. Baxter's sales grew 6 percent in the first quarter, while earnings declined as a result of product mix and competitive pricing in the plasma market.

Baxter's sales from continuing operations in the quarter rose to $2.0 billion, up from $1.88 billion reported for the same period last year. The increase in sales for the first quarter included a 4 percentage-point benefit from foreign exchange. Sales within the United States grew 4 percent to $956 million, while sales outside the United States grew 9 percent to $1.04 billion (or declined 1 percent excluding the impact of foreign exchange). First quarter sales for Renal grew 2 percent to $407 million and sales in BioScience were down 1 percent at $740 million. Medication Delivery sales grew 17 percent to $850 million. Contributing to the growth in Medication Delivery were strong sales of anesthesia and drug delivery products, as well as sales from ESI Lederle, which Baxter acquired at the end of 2002.

Baxter's earnings from continuing operations in the first quarter totaled $217 million, or $0.36 per diluted share, a decline of 14 percent from the $253 million, or 12 percent from the $0.41 per diluted share reported last year. The first quarter results include a pre-tax impairment charge of $13 million to reflect the decline in the market value of a minority investment.

"Despite the current challenges in the plasma protein business, I expect our sales growth for the full year to be in the 8 to 12 percent range and our EPS growth to be in the $2.10 to $2.20 range, in addition to generating cash flows from continuing operations of $1.3 billion to $1.5 billion before capital expenditures," said Harry M. Jansen Kraemer, Jr., chairman and chief executive officer. "With the many new product launches we have planned for 2003, combined with our ongoing expansion with current products into new markets, we believe we are well positioned to achieve our goals."

Contributing to growth for full-year 2003 will be the anticipated approval and launch of the company's innovative hemophilia therapy ADVATE, which will offer patients the first Factor VIII recombinant therapy to be clinically developed and prepared without the addition of any human- or animal-derived raw materials.

Specifically for the second quarter, the company expects to achieve sales growth in the range of 8 to 10 percent and EPS in the range of $0.40 to $0.42. Among the contributors to the growth in the second quarter will be the launch of several products, including the new peritoneal dialysis (PD) solution, Extraneal, and the ALYX Red Blood Cell Collection System. The launch of Extraneal is the first of several new product launches anticipated in the Renal business this year in an effort to continually refresh its product line for patients with end-stage renal disease.

A webcast of Baxter's first quarter conference call for investors can be accessed live from a link on Baxter's website at www.baxter.com beginning at 7:30 a.m. CDT on April 16, 2003. The company will conduct its Annual Meeting of Stockholders on May 6, and will be making an investor presentation on June 10. Please visit Baxter's website for additional information about these events.

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.

(BAXTER, ADVATE, EXTRANEAL and ALYX are trademarks of Baxter International Inc. and its subsidiaries)

This news release contains forward-looking statements that involve risks and uncertainties, including the effect of economic conditions, actions of regulatory bodies, product development risks, product demand and market acceptance, the impact of competitive products and pricing, foreign currency exchange rates 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.

Attachments (Adobe Acrobat PDF format)

• Consolidated Statements of Income from Continuing Operations
• Cash Flow from Continuing Operations and Changes in Net Debt
• Net Sales from Continuing Operations
• Key Product Line Sales

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