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BAXTER TO SPIN OFF ITS ALTERNATE-SITE BUSINESSES TO SHAREHOLDERS

 BAXTER TO SPIN OFF ITS ALTERNATE-SITE BUSINESSES TO SHAREHOLDERS
 DEERFIELD, Ill., June 12 /PRNewswire/ -- Baxter International's (NYSE: BAX) board of directors today approved in principle a 100 percent distribution to Baxter shareholders of a new stock for the company's alternate-site health-care businesses.
 These businesses, which are among the leaders in providing products and services for use outside hospitals, will be headed by Baxter executive vice president C.A. (Lance) Piccolo, who has been a pioneer in the alternate-site marketplace. The new company will include Caremark Inc., the Orthopedic Services Division and the Prescription Service Division, and will operate under the Caremark name as a completely separate, free-standing company with a publicly traded stock.
 Full details of the separation remain to be worked out. Baxter said that it planned to complete the transaction by year-end, and that the distribution is expected to be tax-free to shareholders and the company.
 "A total spin-off is the best way to achieve the range of strategic objectives that we've set: to resolve the increasing conflicts and tradeoffs between the alternate-site businesses and the company's core hospital customers, to make the alternate-site businesses more competitive, and to provide financial flexibility and incentives for alternate-site management to grow the business," said Vernon R. Loucks Jr., chairman and chief executive officer.
 "The spin-off of Caremark re-emphasizes Baxter's commitment to serving the needs of hospitals, and this transaction will allow us to do that with even greater focus and intensity in the future," Loucks said. "The expected growth and efficiency of Baxter's core businesses after the spin-off will permit the company to achieve its earnings and return- on-capital objectives."
 The company announced at its annual meeting April 27 that it would explore the creation of a separately traded equity security for the alternate-site businesses, in the form of a distribution to Baxter shareholders, a partial public offering or some combination of a distribution to shareholders along with a partial public offering.
 The new Caremark businesses provide products and services for home health care, infusion therapy, AIDS care, women's health care, physical therapy and prescription services. Sales in those businesses exceeded $1 billion in 1991 and have been growing more than 20 percent a year over the past 4 years. Baxter's renal therapy business is not included in the spin-off.
 Baxter International Inc. is the leading international manufacturer and marketer of health-care products, systems and services.
 -0- 6/12/92
 /CONTACT: Les Jacobson of Baxter International, 708-948-4555/
 (BAX) CO: Baxter International Inc. ST: Illinois IN: MTC SU:


CK -- NY043 -- 9687 06/12/92 12:49 EDT
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Publication:PR Newswire
Date:Jun 12, 1992
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