News Release

BAXTER ANNOUNCES AGREEMENT TO MOVE INTO
STATE-OF-THE-ART BIOTECHNOLOGY CENTER

VIENNA, Austria, November 26, 2003 -- Baxter International Inc. and the City of Vienna today announced that Baxter has agreed to consolidate some of its research and development (R&D) facilities into a state-of-the-art biotechnology center being built by the City of Vienna. The new biotechnology complex, will be located in Muthgasse in the 19th district of Vienna, adjacent to the University of Vienna, and will provide space for high-tech laboratory and pilot production facilities. Construction of the new complex is expected to begin in Spring 2004.

"The new biotechnology center in Muthgasse was designed to attract companies like Baxter that can benefit from being at the center of a biotech community," said Dr. Michael Häupl, Mayor of Vienna. "In addition, the center will offer cutting edge facilities and close proximity to academic resources making it an attractive location for biotech companies."

"Moving our R&D activities into this state-of-the-art facility offers Baxter a number of benefits. Not only will we have access to a number of academic resources and a shared infrastructure with the University, we will also have access to new talent and potential partnerships among other biotech companies that move into the complex," said Dr. Friedrich Dorner, President Global R&D BioScience.

Baxter's R&D platforms planned to be located within the new biotechnology center include cell culture, microbial fermentation and protein purification for the development of biopharmaceuticals. Initially the facility is expected to house approximately 550 employees from Baxter's facilities in Austria, with room for significantly increased capacity in the future. Baxter has approximately 3,000 employees in Austria. The facility also will have capacity for state of the art production of material for preclinical and clinical development, as well as for full-scale production of therapeutics.

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 actions of regulatory and government bodies, technological advances in the medical field, market demand, the impact of competitive products and pricing 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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