Baxter's Board of Directors Approves New Share Repurchase Authorization of $2 Billion

DEERFIELD, Ill., March 18, 2008 – Baxter International Inc. (NYSE:BAX) announced today that its Board of Directors has approved the repurchase of an additional $2 billion of the company’s common stock to be executed upon completion of the company’s existing share repurchase authorization.

Baxter has less than $700 million of remaining authorization under its previous  $2 billion share repurchase program that was authorized in March 2007. Shares will be repurchased in the open market at times and amounts determined by management based on its evaluation of market conditions and other factors.

In 2007, Baxter returned more than $2.5 billion to shareholders through both share repurchases and dividends. The company repurchased 34 million shares of common stock, for approximately $1.9 billion, and paid dividends totaling $704 million.

“We remain confident in our ongoing ability to generate strong cash flows,” said Robert M. Davis, chief financial officer. “We expect to return significant value to shareholders through a disciplined approach to capital allocation and financial management, while accelerating our investment in R&D and new business development opportunities that position us for future growth.”

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.

This release includes forward-looking statements concerning the company's expected cash flows, investments in R&D, accelerating business development activities and share repurchases and investments. 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: the company’s ability to identify and execute on business development and R&D opportunities; continued strength in the company’s financial position, including cash flows; alternative uses of funds including, but not limited to dividends, business development transactions, and other investments in the company’s businesses; and other risks identified in the company's most recent filing on Form 10-K 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.