News Release

BAXTER'S NEWEST PERITONEAL DIALYSIS SOLUTION -- EXTRANEAL (ICODEXTRIN) -- APPROVED FOR SALE IN JAPAN

EXTRANEAL Leads Expansion of Baxter's Global Portfolio of Products for Kidney Disease

DEERFIELD, Ill., May 6, 2003 -- Baxter Healthcare Corporation announced today that the Japanese Ministry of Health, Labor and Welfare (JMHLW) has approved EXTRANEAL (icodextrin), a peritoneal dialysis (PD) solution, in Japan. This solution offers the potential for increased removal of fluid from the bloodstream during dialysis (known as ultrafiltration) over currently available 1.5 and 2.5 percent dextrose solutions in Japan, during long-dwell dialysis exchanges. EXTRANEAL is the first solution with a new class of osmotic agent introduced for PD patients.

"We are committed to continually delivering new therapeutic improvements to help people with kidney disease," said Alan L. Heller, senior vice president and president of Baxter's global Renal business. "The launch of EXTRANEAL in Japan and recently in the United States, will expand Baxter's offering of dialysis treatments globally."

EXTRANEAL's indication in Japan and the United States is for a single, daily exchange for long dwell in peritoneal dialysis in patients with chronic renal failure. "Dwell" is the amount of time dialysis solution remains in the abdominal cavity during PD therapy, which is usually performed in the home. "Exchange" refers to the process of discarding used dialysis solution and instilling fresh dialysis solution into the abdominal cavity.

Prior to EXTRANEAL, available dialysis solutions used glucose as the osmotic agent, which acts as the driving force in the removal of fluid from the bloodstream. EXTRANEAL solution uses a novel osmotic agent that is a polymer of glucose to remove greater amounts of fluid over the long-dwell period compared to standard 1.5 and 2.5 percent dextrose solutions. During long-dwell dialysis exchanges with solutions other than EXTRANEAL, more dialysis fluid may be absorbed into the bloodstream than is removed by ultrafiltration, which translates into less effective fluid removal. 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.

"Regrettably, many otherwise successful PD patients lose their ability to eliminate fluid, normally removed during dialysis. These patients suffer ultrafiltration failure and many are forced to prematurely discontinue PD as their preferred form of therapy. EXTRANEAL approval in Japan offers an exciting, novel opportunity for nephrologists to enhance ultrafiltration for these patients. This can be done without having to resort to higher glucose-containing dialysis solutions with their related concerns," said William Owen, Jr., M.D., chief scientist, Baxter's global Renal business. "The increased global presence of our specialty PD solutions, like EXTRANEAL, as part of our comprehensive clinical management approach to PD expands options to optimize the treatment of end-stage renal disease."

EXTRANEAL is currently approved for marketing in 36 countries, including recent approvals in Taiwan and the United States. More than 10,000 patients are currently using the solution worldwide. The solution is expected to be available in Japan in the second half of 2003.

EXTRANEAL is contraindicated in patients with a known allergy to cornstarch or icodextrin or in patients with glycogen storage disease. In clinical trials in the United States and Europe, the most frequently reported adverse events occurring in less than 10 percent of patients, were peritonitis, upper respiratory infection, hypertension and rash. These adverse events also were observed in control patients, although less commonly. The most common treatment-related adverse event for EXTRANEAL patients was skin rash.

Since falsely elevated glucose levels have been observed with blood glucose monitoring devices and test strips that use glucose dehydrogenase pyrroloquinolinequinone (GDH-PQQ)-based methods, these should not be used to measure glucose levels in patients administered EXTRANEAL. Patients with insulin-dependent diabetes may require modification of insulin dosage following initiation of treatment. For more information on EXTRANEAL, including prescribing information, see www.baxter.com/extraneal.

ESRD and Treatment Background
As chronic kidney disease progresses to end-stage renal disease (ESRD), the kidneys are irreversibly damaged and can no longer effectively fulfill their role of filtering and removing wastes, toxins and fluid from the body. Without some form of renal replacement therapy, death will ensue within days or weeks. Treatment options for ESRD include kidney transplantation, hemodialysis (HD), and peritoneal dialysis (PD). PD, unlike HD, does not require that blood leave the body during dialysis. Rather, removal of accumulated wastes, and fluid are accomplished by filtration across the abdominal lining, the peritoneum. Acting as a natural or biological filter, fluid is entered into the abdomen through a surgically placed soft, flexible plastic tube. Wastes and excessive fluid that build up in the body pass from the blood into dialysis solution. The solution, which now contains the toxins and waste fluids, is drained from the abdomen through the tube, and fresh fluid is infused.

In the United States, more than 300,000 people, or more than one in 1,000 people, are being treated for ESRD. The number of people being treated for ESRD in the United States is growing approximately six percent annually. In Japan, approximately 220,000 ESRD patients are being treated with some form of dialysis.

Baxter is a leading provider of renal products and services worldwide. In 1956, the company introduced the first disposable coil dialyzer, a development that greatly enhanced the use and application of hemodialysis. Nearly 20 years later, Baxter was the first company to introduce continuous ambulatory peritoneal dialysis products.

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

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

This news release contains forward-looking statements that involve risks and uncertainties, including product demand and market acceptance, 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: