News Release

BAXTER ANNOUNCES PUBLIC OFFERING OF COMMON STOCK

Deerfield, Ill., September 16, 2003 - Baxter International Inc. (NYSE:BAX) announced today that it is planning a public offering of approximately 22 million shares of common stock, under the company's existing shelf registration statement.

Baxter plans to use the proceeds, which are expected to total approximately $675 million, to settle all remaining equity forward agreements related to its common stock, to fund its previously announced acquisition of certain assets from Alpha Therapeutics and for other general corporate purposes.

The offering will include a customary over-allotment option, and the joint book-running managers for the offering will be Banc of America Securities LLC and Credit Suisse First Boston LLC.

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.

Nothing herein shall constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offerings are being made by means of a prospectus and related prospectus supplements only, copies of which may be obtained from:

Prospectus Department, Banc of America Securities LLC
100 W. 33rd Street, 3rd Floor
New York, NY 10001
646/734-4166

Prospectus Department, Credit Suisse First Boston LLC
One Madison Avenue
New York, NY 10010
Telephone: 212-325-2580

This news release contains forward-looking statements that involve risks and uncertainties, including market demand, economic conditions, actions of regulatory bodies, the impact of competitive products and pricing, technological advances in the medical field, foreign exchange 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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