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Baxter Reports Solid First Quarter Financial Results and Raises Full-Year Outlook
Date:4/17/2008

sruptive technologies; reimbursement policies of government agencies and private payers; the availability of acceptable raw materials and component supply; the ability to enforce company patents; patents of third parties preventing or restricting the company's manufacture, sale or use of affected products or technology; foreign currency fluctuations and other risks identified in the company's most recent filing on Form 10-K and other Securities and Exchange Commission filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements. Financial schedules are attached to this release and available on the company's website.

BAXTER INTERNATIONAL INC.

Consolidated Statements of Income

Three Months Ended March 31, 2008 and 2007

(unaudited)

(in millions, except per share and percentage data)

Three Months Ended

March 31,

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

2008 2007 Change

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

NET SALES $2,877 $2,675 8%

COST OF GOODS SOLD 1,497 (1) 1,409 6%

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

GROSS PROFIT 1,380 1,266 9%

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

% of Sales 48.0% 47.3% 0.7 pts

MARKETING AND ADMINISTRATIVE EXPENSES 640 583 10%

% of Sales 22.2% 21.8% 0.4 pts

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SOURCE Baxter International Inc.
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