News Release

BAXTER ANNOUNCES LAUNCH OF ARALAST™ FOR PATIENTS WITH HEREDITARY EMPHYSEMA IN NEED OF NEW THERAPY

DEERFIELD, Ill, May 30, 2003 -- Baxter announced today the launch of Aralast™, a new alpha-1 antitrypsin therapeutic, also known as Alpha 1 proteinase inhibitor (A1PI) for the treatment of hereditary emphysema. Aralast™ will be available this month exclusively through specialty pharmacy providers, including Accredo Health Inc., Caremark Inc. and Coram Healthcare.

"A1PI deficiency results in a form of hereditary emphysema and people living with this condition require appropriate treatment to protect against long-term lung damage," said James M. Stock, M.D., professor of Medicine, University of Texas Health Center. "Aralast™ provides a new important treatment option for patients."

Baxter was named the exclusive distributor of Aralast™ by Alpha Therapeutic Corporation in December 2002. As was previously announced, both companies continue to work toward completion of a definitive agreement in which Baxter will acquire all rights to Aralast™ and all of Alpha Therapeutic Corporation's plasma collection operations. Until the completion of that transaction, Alpha Therapeutic Corporation will continue to process limited supplies of the therapy. Following a complete transition of the entire processing operation to Baxter, plans are in place to gradually increase supplies of Aralast™ from now through 2005.

"We are committed to making the current supplies of Aralast™ available because we recognize the lack of options that have been available to this patient population," said Larry Guiheen, president of Biopharmaceuticals at Baxter. "Aralast™ also leverages Baxter's history of success in the processing of therapeutic proteins to help address the needs of this marketplace."

Baxter selected three specialty pharmacy providers to provide Aralast™, along with a comprehensive offering of nationwide homecare services, to support patients with hereditary emphysema. These services include comprehensive care from a team of experienced pharmacists and nurses, physician-coordinated treatment plans, information on reimbursement programs, advocacy programs, therapy education and nursing support.

According to the Alpha-1 Foundation, A1PI deficiency affects an estimated 100,000 people in the United States and results in a form of hereditary emphysema. People with this deficiency have reduced serum levels of A1PI, an important blood protein processed in the liver. This protein helps protect lung tissue from damage caused by enzymes that are released by white blood cells. Without sufficient quantities of A1PI, patients develop lung damage. If untreated, A1PI can result in emphysema and premature death.

A1PI deficiency should be treated by a weekly infusion of a plasma-derived alpha-1 proteinase inhibitor like Aralast™. This therapeutic approach is not a cure nor will it reverse lung damage that has already occurred. However, it does protect the lungs from further damage, making early diagnosis and treatment desirable.

Patients and physicians who want information about obtaining Aralast™ should contact Baxter at 1-800-423-2090.

Alpha Therapeutic Corporation is a leading developer of plasma-derived biopharmaceutical therapies. Alpha's therapy portfolio includes coagulation factors, immune globulin and albumin, which are distributed domestically to hospitals, pharmacies, homecare companies and physicians. Internationally, Alpha's therapies are marketed through a network of subsidiaries, affiliates and local offices in Asia, Europe and Latin America.

Baxter Healthcare Corporation is the principal U.S. operating subsidiary of Baxter International Inc. (NYSE: BAX). Baxter 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 about Baxter, please visit www.baxter.com.

This news release contains forward-looking statements that involve risks and uncertainties, including actions of regulatory bodies, market demand, the impact of competitive products and pricing, technological advances in the medical field, completion of definitive agreements 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.

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