News Release

BAXTER HIGHLIGHTS ECONOMIC, SOCIAL AND ENVIRONMENTAL PERFORMANCE IN ITS FOURTH ANNUAL SUSTAINABILITY REPORT

Baxter Underscores Importance of Sustainable Development for Future Generations by Showcasing the Perspectives of Children

DEERFIELD, Ill., July 29, 2003-Baxter International Inc. (NYSE: BAX) today launched its fourth annual sustainability report, "Our Progress: Generation to Generation." The report features illustrations by children related to Baxter employees around the world as a reminder of the company's commitment to providing for the needs of the present generation while not compromising the needs of future generations.

Baxter's 2002 Sustainability Report, which is aligned with the Global Reporting Initiative's (GRI) Reporting Guidelines¹, highlights the company's progress along a variety of dimensions of sustainable development that cut across the "triple bottom line" of economic, social and environmental performance.

"While the subjects of the artwork in this year's sustainability report are as different as the children who drew them, I believe that each child shares the same thoughts as my children who see their dad going off to work and believe he's doing something that matters," said Harry M. Jansen Kraemer, Jr., Baxter's chairman and chief executive officer. "At Baxter, we are in the important business of making products and services that help people, with the goal of making a meaningful difference in the lives of many. This requires a focus not only on financial and business goals, but on our social and environmental responsibilities to help sustain our company and the communities in which we live and work."

Baxter's report and related activities are part of a growing trend among corporations worldwide to embrace the concept of sustainability that is being driven by globalization, heightened expectations from stakeholders, and a growing emphasis on transparency and accountability².

Over the years, Baxter's sustainability reports and practices have been recognized by such organizations and publications as Green @ Work, Business Ethics magazine, Chief Executive magazine, the United Nations Environment Programme, and SustainAbility. Baxter also is designated a Sustainability Leader by Dow Jones Sustainability Index and Sustainable Asset Management since its inception in September 1999. The Index consists of more than 300 companies, which represent the top 10 percent of the leading sustainability companies across 64 industry groups and 33 countries.

Highlights from Baxter's 2002 Sustainability Report include:

• Becoming a member of Climate Leaders -- a new, voluntary partnership between business and the U.S. Environmental Protection Agency, and becoming a founding member of the Chicago Climate Exchange.
• Estimating a savings and cost avoidance of approximately $4.3 million through energy reduction strategies.
• Helping to increase access to health care in 25 countries through 172 grants totaling $3.6 million. Grants include support for a school-based mental health screening/training program, expanding a child abuse prevention program, improving the health of at-risk youth, women and elders, and donating products to developing nations, in addition to other important efforts.
• Improving the company's workplace safety culture by addressing breaches before accidents occur. Improvements were made in lost-time case rates (6 percent reduction) and lost workdays (11 percent reduction).
• Conducting the company's first seminars for suppliers on ethical business practices.
• Being named to Fortune magazine's "100 Best Companies to Work for 2003."

More highlights from Baxter's 2002 Sustainability Report can be viewed at www.baxter.com/about_baxter/sustainability/. The report is available in print and online at www.baxter.com/about_baxter/sustainability/.

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.

¹ Baxter was one of the 30 Charter Members of the Global Reporting Initiative, one of the first 21 pilot companies to report under the GRI Sustainability Reporting Guidelines established in 1999, and is a member of the GRI Stakeholder Council. For more information about GRI and the Sustainability Reporting Guidelines, visit www.globalreporting.org/.

² The Conference Board, Corporate Citizenship in the New Century, 2002.

FOR ADDITIONAL INFORMATION:

	For Baxter Media Contacts: Lisa Keltner, 847-948-4107 Investor Contacts: Mary Kay Ladone, 847-948-3371