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BAXTER ADOPTS NEW ACCOUNTING STANDARD FOR RETIREE BENEFITS

 DEERFIELD, Ill., Jan. 21 /PRNewswire/ -- Baxter International (NYSE: BAX) announced today that it will reflect in its 1992 financial results the adoption of the Financial Accounting Standards Board Statement No. 106 for retiree medical and life-insurance benefits. This new standard requires companies to accrue costs for post-retirement benefits during employees' years of service. Previous accounting recognized these costs on a cash basis.
 This accounting change will result in a one-time after-tax charge retroactively applied to the first quarter of 1992 of approximately $165 million, or 59 cents per share.
 In addition, as required by accounting rules, Baxter will restate its previously reported earnings from continuing operations for the first three quarters of 1992 when it issues its 1992 year-end financial results later this month. The company's previously reported operating income for 1992 will decrease by approximately $5 million per quarter, reflecting the higher cost levels associated with the newly required accrual method. Adopting the new rule will reduce total 1992 earnings per share from continuing operations by approximately 6 cents.
 Baxter had disclosed in its 1991 annual report that it expected to adopt the new accounting standard in the first quarter of 1993. The company has elected to adopt the standard effective in 1992 to facilitate the analysis of future earnings trends.
 Baxter International Inc. is the leading manufacturer and marketer of health-care products, systems and services worldwide. The company reported worldwide net sales from continuing operations in 1991 of $7.8 billion.
 -0- 1/21/93
 /CONTACT: Geoffrey D. Fenton of Baxter International, 708-948-3436/
 (BAX)


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

SH -- NY018 -- 7273 01/21/93 09:35 EST
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Publication:PR Newswire
Date:Jan 21, 1993
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