Baxter and Novation Sign Multi-Year Contract Extension Valued at Over $200 Million for Medication Deliver...( Extension Provides Members of Univers...)

Extension Provides Members of University HealthSystem Consortium With Broad

Portfolio of IV Products

DEERFIELD, Ill., Oct. 9 /PRNewswire-FirstCall/ -- Baxter International Inc. (NYSE: BAX) announced today that Novation, the University HealthSystem Consortium's (UHC) contracting services company, has signed a new two-year contract extension on behalf of UHC valued at over $200 million over the contract term. The extension will commence at the conclusion of UHC's previous multi-year agreement in mid-2008.

UHC, which includes most of the prestigious academic hospitals in the U.S., will continue to have access to Baxter's broad portfolio of intravenous (IV) solutions, drug delivery products, nutrition products, IV administration sets and components, and infusion pumps. Baxter received an extended single source award for IV solutions and maintained a previously established multi- source award for infusion pumps and sets.

"We are pleased to have been selected by Novation and UHC to provide life- sustaining drugs and medical devices to their members," said David Bonderud, president of the U.S. Region of Baxter's Medication Delivery business. "The new contract reflects our ongoing commitment to UHC to deliver value with our broad portfolio of Medication Delivery products."

About Novation and UHC

Based in Irving, Texas, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances and nearly 9,000 members of Provista, LLC (formerly known as Healthcare Purchasing Partners International, LLC (HPPI)). Through its co
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