News Release

BAXTER HEALTHCARE AGREES TO SALE OF RENAL SERVICES COMPONENTS

Deerfield, Ill., July 10, 2003 -- Baxter Healthcare Corporation announced today that it has signed definitive agreements to sell its U.S.-based RMS Lifeline access management and RMS Disease Management businesses, and has closed the first in a series of transactions involving the divestiture of certain of its Renal Therapy Services (RTS) dialysis centers outside of the United States. Baxter announced in December 2002 its intent to sell these service components of its Renal business.

"The sale of these service businesses allows Baxter to concentrate on our core products to improve renal care," said Al Heller, Baxter's senior vice president and president of the company's Renal business. "In addition, these transactions provide us the opportunity to continue building our product sales based on our relationships with the buyers of these businesses."

DaVita, Inc., of Torrance, California, will acquire the U.S.-based RMS Lifeline and RMS Disease Management businesses. Lifeline is an access management company in the United States, managing vascular access centers to meet the needs of end-stage renal disease (ESRD) patients. RMS Disease Management provides disease management services to improve the care and outcome for ESRD patients while managing the cost of care. These businesses will be acquired by DaVita through separate transactions.

Avitum Austria GMBH, a subsidiary of B. Braun Melsungen AG, of Germany, will acquire four RTS renal care centers in Slovakia and the Czech Republic. Avitum will continue to work with Baxter to provide dialysis services in these countries.

In April, Baxter completed the sale of its four RTS centers in Italy to the management group that had been operating them under contract to Baxter. Baxter is currently analyzing offers for the remaining RTS centers it plans to divest.

Financial terms are not being disclosed.

About Baxter

Baxter's Renal business provides a complete and complementary portfolio of dialysis-related products used in the treatment of patients with kidney disease, including dialysis systems and solutions, pharmaceuticals and biotechnology products.

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.

This news release contains forward-looking statements that involve risks and uncertainties, including demand by potential acquirers, the effect of economic conditions, actions of regulatory bodies, 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. There can be no assurance that the strategy outlined above will be successful. 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:

	For Baxter Media Contacts: Rick Moser, 847-948-3272 Cindy Resman, 847-948-2815 Investor Contacts: Neville Jeharajah, 847-948-2875 Mary Kay Ladone, 847-948-3371