Recruiting in China

DEERFIELD, Ill., March 22 /PRNewswire-FirstCall/ -- Baxter International Inc. announced today plans to invest approximately $60 million over the next five years to expand production capacity at its four manufacturing facilities in China to support sales growth in the company's Medication Delivery and Renal businesses. Baxter's sales in China, which were approximately $100 million in 2005, are expected to more than double by 2010, given the anticipated increase in demand for the company's intravenous solutions (IV) and peritoneal dialysis (PD) products.

"This investment symbolizes Baxter's strong commitment to meeting local needs for critical products and advancing healthcare in China and across the Asia Pacific region," said Peter J. Arduini, president of Baxter's Medication Delivery business. "It also underscores the importance of this key market in Baxter's continuing geographic expansion and growth."

Baxter provides hospitals throughout China with a range of intravenous solutions and specialty products that are used in combination for fluid replenishment, general anesthesia, nutrition therapy, pain management, antibiotic therapy and chemotherapy. The company also serves a growing population of patients within the country with products and services to treat end-stage kidney disease.

In addition to four manufacturing facilities in China, Baxter operates seven others in countries across the Asia Pacific region, including India, Japan, Singapore, Australia and the Philippines.

"In the last year and a half, Baxter has significantly strengthened its regional presence, including the recent opening of the company's new Asia Pacific headquarters in Shanghai," said Gerald Lema, president of Baxter Asia Pacific. "Baxter's new regional focus positions the company well to meet the growing healthcare needs of patients across the region."

Baxter International Inc., through its subsidiaries, assists healthcare 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.

This release includes forward-looking statements concerning investment and sales growth in China. 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 continuing development of demand for company products in China, competitive market dynamics, local regulatory requirements with respect to products and investment, 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 web site. The company does not undertake to update its forward-looking statements.

Baxter International Inc.

CONTACT: Media Contacts, Deborah Spak, +1-847-948-2349, or Tom Kline,+1-847-948-2251, or Investor Contacts, Mary Kay Ladone, +1-847-948-3371, orClare Sullivan, +1-847-948-3085, all of Baxter International Inc.

Web site: http://www.baxter.com/