News Release

BAXTER ANNOUNCES PRICING FOR PUBLIC OFFERING

Deerfield, Ill., September 18, 2003 -- Baxter International Inc. (NYSE:BAX) announced today that its public offering of common stock was priced at $30.50 per share.

As announced earlier this week, Baxter is issuing 22 million shares of common stock under its existing shelf registration, and may issue up to an additional 3.3 million shares if the underwriters exercise their over-allotment option in full. The lead managers for the offering are Banc of America Securities LLC and Credit Suisse First Boston LLC, and the co-managers are Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and UBS Securities LLC.

Baxter plans to use the proceeds to settle all remaining equity forward agreements related to its common stock, to fund its previously announced acquisition of certain assets from Alpha Therapeutic Corporation and for other general corporate purposes.

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 offering is being made by means of a prospectus and a related prospectus supplement 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
646-733-4166

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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