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BAXTER RESPONDS TO PROPOSED VA SUSPENSION

 DEERFIELD, Ill., Aug. 13 /PRNewswire/ -- Baxter International (NYSE: BAX) today confirmed that it received notification today from the U.S. Department of Veterans Affairs (VA) that the company has been temporarily suspended from competing for or being awarded new contracts with agencies of the federal government.
 It is Baxter's understanding that this action is not an official debarment. The VA said the suspension could remain in effect for up to 12 months, pending a final decision by the department.
 The suspension applies only to future contracts and does not affect Baxter's sales to government agencies under existing contracts. Baxter's sales to U.S. government agencies totaled approximately $130 million in 1992. The company's total 1992 sales were $8.5. billion.
 The VA cited as reasons for its actions Baxter's guilty plea in March to violating a provision of the Export Administration Act and also an investigation it began in 1990 of Baxter sales practices involving VA hospitals. The company said that it had in 1991 worked with the VA and took systematic steps to assure that all its sales practices were proper and acceptable to the agency. The company was advised at that time that the VA was pleased with the company's response.
 Today's notification was unexpected by Baxter. The company continues to meet cooperatively with the Department of Veterans Affairs on these matters and to address whatever concerns the department may have. Under the terms of the government's notification, Baxter will, within 30 days, provide information and ask the VA to reconsider its decision.
 -0- 8/13/83
 /CONTACT: Geoffrey Fenton of Baxter International, 708-948-3436/
 (BAX)


CO: Baxter International ST: Illinois IN: HEA SU:

TM -- NY095 -- 2759 08/13/93 18:09 EDT
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Publication:PR Newswire
Date:Aug 13, 1993
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