DEERFIELD, Ill., July 29, 2004 -- To provide more expansive information and updates regarding its performance on economic, environmental and social parameters, Baxter International Inc. (NYSE:BAX) has created a new website portal at http://www.baxter.com/sustainability.  The new website and on-line report captures the company’s 2003 performance across a broad spectrum of indicators, features stories that provide additional perspective about how Baxter impacts and interacts with its communities and stakeholders, and provides convenient links to relevant company policies and resources. 

Baxter has used the Global Reporting Initiative (GRI) Guidelines as a foundation for identifying the company’s progress against performance indicators that offer a comprehensive picture of where the company stands in its efforts to drive sustainable development. 

“We all recognize that the social and health needs in our communities are staggering, and at the same time the world’s natural resources are finite and fragile.  All of us – individually and collectively – can and do have an impact,” said Robert L. Parkinson, Jr., Baxter’s chairman and chief executive officer.  “We take our responsibility for sustainability very seriously.  Our new report showcases our commitment to transparency about our performance and how Baxter employees throughout the world live up to our shared accountability and make a difference in our communities.  We are very committed to advance our company in ways that also positively impact our industry, as well as the health and well-being of our communities.” 

“At the same time, in sharing our own experiences and performance with others, we are constantly challenged to raise the bar and often come away with new ideas for product and process improvement,” Parkinson continued.  “I firmly believe that success and sustainability are achieved through dialogue and the collective ideas and actions of individuals across the organization, and not just by words in a mission statement or special programs and objectives.”

In 2003, Baxter celebrated the 10th anniversaries of the company’s Shared Values and Business Practices programs, which have provided the solid foundation for the company’s culture and approach toward sustainability.  During the year, the company also launched several new collaborations aimed at advancing sound business and environmental practices beyond Baxter and through its supply chain, including a business ethics toolkit for suppliers worldwide and the Green Supplier Network for the health care industry (in partnership with the U.S. EPA and Department of Commerce).

Economic turmoil, natural disasters and political instability brought significant challenges to public health in 2003, and Baxter increased its efforts to provide support.  In 2003, the Baxter International Foundation contributed $3.6 million in 25 countries to help improve lives in local and global communities and increase access to health care on a global basis. The company also donated more than $5.5 million in vital medical products to help meet the most critical needs throughout the world, in addition to the nearly $5 million donated through Baxter’s local businesses and facilities and the numerous volunteer efforts of Baxter employees throughout the world.

Baxter continued to receive accolades for its sustainability reporting and performance in 2003, including:

• 2004 Dow Jones Sustainability Index -- Industry Leader
  The 2004 Dow Jones Sustainability Index (DJSI) ranked Baxter the Medical Products Industry Leader for the second year.  Baxter scored highest in the Environmental Dimension, earning a perfect score in a few categories.  The DJSI and Sustainable Asset Management have designated Baxter a “Sustainability Leader” since the inception of the index in September 1999.
   
• Innovest Strategic Value Advisors – No. 1 Environmental Program
  Baxter’s environmental program was rated No. 1 of 32 healthcare equipment and supplies companies. Innovest is the largest international investment-advisory firm that rates companies on environmental and other issues as they relate to competitiveness, profitability and share-price performance.
   
• University of Illinois at Chicago’s School of Public Health -- 2003 Dimensions of Health Award
  Baxter’s worldwide team of occupational nurses, physicians and environmental and safety professionals won the 2003 Dimensions of Health Award for their efforts to improve the health, safety and environment of Baxter employees around the world.  The award is sponsored by the Worksite Wellness Council of Illinois at the University of Illinois at Chicago’s School of Public Health.
   
• U.S. Green Building Council -- “SMALL feet, large FEAT” Award
  The Chicago Chapter of the U.S. Green Building Council awarded Baxter its “SMALL feet, large FEAT” award in May 2004 in “recognition of the 
  excellent work Baxter has been doing over many years with respect to reducing its environmental impact.”
   
• “Business Ethics” Magazine -- Excellence in Environmental Reporting
  “Business Ethics” magazine named Baxter its 2003 Environmental Reporting Award winner for the company’s approach to sustainability reporting.  The magazine noted that Baxter has sustained its leadership role at the cutting edge of the new field of environmental auditing and reporting.

Baxter International Inc., through its subsidiaries, assists health-care professionals and their patients with the 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.