News Release

BAXTER RECEIVES NOTIFICATION OF MULTI-YEAR CONTRACT AWARDS FROM PREMIER FOR MEDICATION DELIVERY PRODUCTS

Deerfield, Ill., September 18, 2003 - Baxter Healthcare Corporation announced today that Premier, Inc., the nation's largest alliance of hospitals and health systems, is awarding the company new multi-year agreements.

The first, a new five-year agreement to commence at the conclusion of the organizations' previous multi-year agreement in February 2004, will offer Premier's hospital and health system owners Baxter's intravenous solutions, medications and nutrition products, infusion pumps, I.V. tubing and devices, and patient-controlled analgesia products. The award, which the company estimates will total an expenditure by Premier members in excess of $2 billion over the term of the contract, will provide them with an integrated, cost-effective approach in managing the administration of medications, including intravenous medications and the devices used to deliver them.

Separately, Baxter also has been awarded another pharmaceutical agreement by Premier covering anesthesia and critical care products, including generic injectables and inhaled anesthetics. Baxter estimates a total expenditure by Premier members of more than $700 million over the three-year term of this contract.

The scope and size of these agreements are expected to be similar to the previous agreements between Baxter and Premier.

"We look forward to working collaboratively with Premier's members to provide an integrated system of products that work together to drive efficiency, value and a safer health care environment," said David F. Drohan, senior vice president and president of Baxter's Medication Delivery business. "Baxter's unmatched breadth of products and technologies will help Premier members address some of their most critical issues such as operational efficiency, staffing challenges, and patient safety."

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 the effect of economic conditions, actions of regulatory bodies, product development risks, 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. 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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