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Baxter Raises Full-Year 2008 Outlook Following Strong Second-Quarter Financial Results
Date:7/17/2008

operations for a period. Management believes that

non-GAAP financial measures can facilitate a fuller analysis of the

company's results of operations, particularly in evaluating performance

period over period. Management uses these non-GAAP financial measures

internally in financial planning, to monitor business unit performance,

and in evaluating management performance. Refer to the company's filing

on Form 8-K of today's date for additional information.

BAXTER INTERNATIONAL INC.

Notes to Consolidated Statements of Income

Six Months Ended June 30, 2008 and 2007 Description of Adjustments and Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

(in millions, except per share and percentage data)

2008 description of adjustment and reconciliation of GAAP to Non-GAAP

---------------------------------------------------------------------

The company's GAAP results for the six months ended June 30, 2008

included a first quarter charge related to COLLEAGUE infusion pumps,

which impacted the GAAP results as follows:

Income

Pre-tax Tax Net Diluted

Income Expense Income EPS

-----------------------------------

GAAP $1,206 $233 $973 $1.52

COLLEAGUE infusion pump charge (A) 53 8 45 0.07

-----------------------------------

Excluding specified item $1,259 $241 $1,018 $1.59

===================================

Effective tax rate 19.1
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SOURCE Baxter International Inc.
Copyright©2008 PR Newswire.
All rights reserved

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