Edwards Lifesciences Corporation, a global leader in medical technologies to treat advanced cardiovascular disease, announced the conclusion of a dispute resolution proceeding with Baxter International Inc. regarding certain disagreements between the two companies arising from Edwards' spin-off from Baxter in April 2000.

Each company sought reimbursement from the other for a variety of claims, most of which were resolved through mutual agreement between the parties, and five of which were resolved by an arbitration panel. The resolution of all claims results in a net payment by Baxter to Edwards of approximately $1 million. From an accounting standpoint, the resolution will result in a one-time positive impact to Edwards' "Additional Contributed Capital" on its balance sheet of approximately $5 million related to the true-up of Edwards' beginning equity balance. Separately, the resolution will also result in a one-time charge to Edwards' operating results of approximately $5 million in the fourth quarter of 2003, primarily arising from the valuation of receivables at the date of spin-off. With this settlement, all outstanding spin-related disputes between the parties are now resolved.