American Red Cross Statement on Plasma Services Exit and Plasma Supply Agreement

WASHINGTON, Tuesday, March 01, 2005 — American Red Cross Biomedical Services continues to evaluate the ways in which we allocate our energy, staff and resources to achieve our strategic priorities and accomplish our core mission of providing a safe and available blood supply. For some time, Red Cross Plasma Services has been undergoing a strategic review process.

As a result, the Red Cross has commenced our exit of the Plasma Services program and has also entered into a long-term plasma supply agreement with Baxter Healthcare Corporation. The Red Cross will no longer process and distribute plasma derivatives. Like other blood banking services in the industry, we will now be a plasma supplier only. These actions allow the Red Cross greater freedom to operate our remaining core blood activities and provide an assured outlet for Red Cross recovered plasma. Patients will have continued access to therapies previously provided by the Red Cross. We will continue to provide plasma to our hospital customers for transfusion.

Given our current strategic imperatives, these decisions are necessary to accomplish our mission. We appreciate all the fine work performed by our Plasma Services staff. We realize these decisions will have an impact on many of our staff members and we will make every effort to ensure that this transition goes smoothly for all involved.

We anticipate an orderly exit of this complex program. The majority of this transition is expected to take place over the next six months.