Date:10/18/2007

gn counterparts, that could limit or suspend product development, manufacturing or sales or result in sanctions; product quality or patient safety concerns leading to product recalls, withdrawals, launch delays, litigation, or declining sales; product development risks; inventory reductions or fluctuations in buying patterns by wholesalers or distributors; the impact of geographic and product mix on the company's sales; the impact of competitive products and pricing, including generic competition, drug reimportation and disruptive 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; and other risks identified in the company's most recent filing on Form 10-Q and other SEC 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 September 30, 2007 and 2006

(unaudited)

(in millions, except per share and percentage data)

Three Months Ended

September 30,

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

2007 2006 Change

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

NET SALES $2,750 $2,557 8%

COST OF GOODS SOLD 1,374 1,342 2%

------------------
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SOURCE Baxter International Inc. Copyright©2007 PR Newswire. All rights reserved

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