DEERFIELD, Ill., November 11, 2008 – The Board of Directors of Baxter International Inc. (NYSE:BAX) today declared a quarterly dividend of $0.26 per Baxter common share. This represents an increase of 20 percent over the previous quarterly rate of $0.2175 per share. The dividend is payable on January 6, 2009, to shareholders of record as of the close of business on December 10, 2008.

“The dividend increase reflects both our strong financial position and continued confidence in the business,” said Robert L. Parkinson, Jr., chairman and chief executive officer. “Because of the medically-necessary nature of our product offerings, diversified business portfolio and extensive global presence, we have the financial strength and flexibility to provide enhanced value to shareholders and invest in future growth despite the uncertain macro-environment.”

Please visit Baxter's website for more information regarding future investor events and webcasts, including investor presentations and conferences. Baxter executives will be presenting at the 2008 Annual Credit Suisse Health Care Conference on Wednesday, November 12 at 10:30 a.m. EST. The webcast of this presentation, as well as Baxter's fourth quarter conference call for investors on January 22, 2009, can be accessed live from a link on the company's website. The company will be hosting its own Investor Conference in Chicago on September 16, 2009.

Baxter International Inc., through its subsidiaries, assists healthcare professionals and their patients with the treatment of complex medical conditions, including hemophilia, immune disorders, 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.

This release includes forward-looking statements concerning the company's dividend. 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: continued strength in the company’s financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-Q and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.