“We are pleased with this loan commitment from Baxter, which supports our long-term financing strategy and further solidifies our partnership,” said Stephen T. Isaacs, president and chief executive officer of Cerus. “Baxter's willingness to provide this funding underscores their confidence in the success of the INTERCEPT Blood System and their commitment to the pathogen inactivation programs.”

The terms of the five-year loan include availability of the funds beginning January, 2003, when all, or a portion, of the credit can be drawn upon at Cerus' option. A 12 percent interest rate will accrue on funds borrowed, with no interest or principal due until 2008. The loan will be secured with collateral based on future revenue from sales of the INTERCEPT Blood System for platelets. The companies recently received approval in Europe for the INTERCEPT Blood System for platelets and have begun the regulatory submission process for the INTERCEPT Blood System for platelets in the United States.

ABOUT CERUS

Cerus Corporation is building on its leading position in the biopharmaceutical industry by developing medical systems and therapeutics to provide safer and more effective options to patients. The company is developing products based on its proprietary Helinx® technology for controlling biological replication. Cerus' most advanced programs are focused on systems to enhance the safety of the world's blood supply. The INTERCEPT Blood System, based on the company's Helinx technology, is designed to inactivate viruses, bacteria, other pathogens and white blood cells. The Concord, California-based company also is pursuing therapeutic applications of Helinx technology to treat and prevent serious diseases. Helinx is a trademark of Cerus Corporation.

INTERCEPT Blood System is a trademark of Baxter International, Inc.

Statements in this news release regarding the closing of the loan financing, regulatory filings, and approvals, product development and product potential are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the above forward-looking statements as a result of certain factors, including the risks and uncertainty of completion of loan documentation, timing and results of clinical trials and other development activities, actions by regulatory authorities at any stage of the development process, additional financing activities, manufacturing, market acceptance of any products, competitive conditions and other factors discussed in the company's most recent filings with the Securities and Exchange Commission.