DEERFIELD, Ill., July 31, 2007 – The Board of Directors of Baxter International Inc. (NYSE:BAX) today declared a quarterly dividend of $0.1675 per share of Baxter common stock.

This payment represents a continuation of the current rate. Earlier this year, Baxter instituted a quarterly schedule for payment of dividends and increased the annual dividend rate for 2007. This quarterly dividend is payable on October 1, 2007 to shareholders of record as of September 10, 2007.

Baxter International Inc., through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other conditions. The company applies its expertise in medical devices, pharmaceuticals and biotechnology to make a meaningful difference in patients' lives.