GUANGZHOU, CHINA, August 8, 2007 — Baxter International Inc. (NYSE:BAX) and Guangzhou Baiyunshan Pharmaceutical Co. Ltd. (SHE:000522) have formally established a joint venture to produce and sell parenteral nutrition products in China as Guangzhou Baxter Qiaoguang Healthcare Co. Ltd., based in Guangzhou, China.

 

Consistent with the agreement, announced in November 2006, the companies are participating in a 50/50 joint venture and are each investing between (US) $65 and $70 million. Guangzhou Baiyunshan Pharmaceutical has contributed its existing parenteral nutrition manufacturing facility located in Guangzhou, China. Baxter is providing new product technologies, technical expertise, product line management and clinical and marketing support.

 

Parenteral nutrition products – used primarily by hospitals in clinical settings such as surgical, critical care, oncology and intensive care wards – are essential to overall patient health, healing and recovery. These products are administered intravenously to provide life-sustaining support for patients who cannot achieve adequate nutrition through other means.

 

The company will manufacture and sell current Baiyunshan parenteral nutrition offerings along with Baxter's nutrition products. Baxter's ClinOleic®, an olive oil-based parenteral emulsion, and Clinimix®, a dual-chamber bag parenteral solution are currently produced in Belgium. Baiyunshan's parenteral products will continue to be produced at the Guangzhou facility, which will gradually expand to include the production of Baxter's products.

 

"This joint venture is a strategic opportunity for both parties," said Xie Bin, chairman of Guangzhou Baiyunshan Pharmaceutical Co. Ltd. "By combining our experience in the domestic parenteral nutrition market with Baxter's product pipeline and expertise, Chinese patients will receive a wider selection of quality parenteral products and a higher level of customer support."

 

"Baxter is pleased to be expanding the development of its parenteral nutrition products in China to address emerging needs and improve access to care for patients, physicians and pharmacists," said John J. Greisch, Baxter's president of international operations. "China represents a key market for Baxter as we continue with our geographic expansion strategy."

 

In 2006, Baxter's sales in China totaled $150 million and have increased approximately 25% per year since 2004.

 

About Guangzhou Baiyunshan

 

Established in 1992, Guangzhou Baiyunshan Pharmaceutical Co. Ltd. develops, manufactures and markets both Chinese and western pharmaceuticals through its affiliated companies and five facilities in China. The company currently has more than 1,700 drug licenses. Guangzhou Baiyunshan is an A-share listed company on the Shenzhen Stock Exchange (Stock code: 000522). In 2006, the company achieved revenue of over $365 million.

 

About Baxter

 

Baxter was one of the first global companies to enter China's healthcare market. Today, Baxter employs approximately 1,500 people in China and has four manufacturing facilities.

 

Baxter International Inc., through its subsidiaries, assists healthcare 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 release includes forward-looking statements concerning expectations related to the joint venture and Baxter's participation therein including those expectations related to the production and sale of parenteral nutrition products by the joint venture, the parenteral nutrition therapy market in China and Baxter's plans to execute on its geographic expansion strategy. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: actions of regulatory bodies and other governmental authorities; changes in laws and regulations; the ability to develop products based on Baxter's technologies; product quality or patient safety concerns; product development risks; demand for and market acceptance risks for new and existing products and other technologies; the ability to enforce patents; numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature; and other risks identified in Baxter International Inc.'s most recent filing on Form 10-Q and other SEC filings, all of which are available on the company's website. Neither Guangzhou Baiyunshan nor Baxter undertakes to update its forward-looking statements.