Milberg Weiss Announces The Filing Of A Class Action Suit on Behalf of Purchasers of the Securities of Baxter International Inc

Business Wire, August 8, 2002

Business Editors & Legal Writers

NEW YORK--(BUSINESS WIRE)--Aug. 8, 2002

The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on August 7, 2002, on behalf of purchasers of the securities of Baxter International Inc. ("Baxter" or the "Company") (NYSE: BAX) between January 24, 2002 and July 18, 2002 inclusive (the "Class Period'). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: http://www.milberg.com/cases/baxter/

The action, numbered 02 C 5608, is pending in the United States District Court for the Northern District of Illinois, Eastern Division, located at 219 S. Dearborn Street, Illinois, against defendants Baxter, Harry M. Jansen Kraemer, Jr. (CEO and Chairman) and Brian P. Anderson (CFO). The Honorable Blanche M. Manning is the Judge presiding over this action.

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between January 24, 2002 and July 18, 2002. Among other things, the complaint alleges that throughout the Class Period Baxter issued press releases representing that its BioScience and Renal divisions would grow their earnings by percentages in the high-teens and high-single-digits, respectively, in 2002. The complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that the Company was experiencing serious problems with its BioScience and Renal divisions. Given these, and other undisclosed problems, defendants' repeated Class Period assurances of continued growth in 2002 were lacking in any reasonable basis when made, according to the complaint. On July 18, 2002, Baxter issued a press release regarding its results for the second quarter of 2002, announcing disappointing sales growth for the BioScience division and a decline in sales for the Renal division. In addition, the Company took a $51 million charge in connection with an acquisition and a $70 million impairment charge reflecting a decline in the value of certain of the Company's investments. In response to the announcement, the price of Baxter common stock plummeted by 36.5%, falling from a $43.41 per share close on July 17, 2002, to close at $32 per share on July 18, on extremely heavy trading volume. During the Class Period, Baxter insiders sold a total of 435,700 Baxter common shares, reaping gross proceeds in excess of $23.7 million.

If you bought the securities of Baxter between January 24, 2002 and July 18, 2002 you may, no later than October 7, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman or Samuel H. Rudman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165

Phone number: (800) 320-5081
Email: baxtercase@milbergNY.com
Website: http://www.milberg.com