TEVA REPORTS RECORD FOURTH QUARTER AND YEAR 2000 RESULTS EARNINGS PER ADR: $0.43

Consolidated Statements of Income
Balance Sheet Data
Sales for the Quarter October-December 2000

Jerusalem, Israel, February 15, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported net income for the fourth quarter ended December 31, 2000 of $57.9 million or $0.43 per share fully diluted, an increase of 44% and 33% respectively.

Net sales for the fourth quarter of 2000 were $518.5 million, an increase of 36% over the comparable quarter of 1999. North America accounted for 64% of these sales, Europe for 20%, Israel for 12%, and Rest of the World, for 4%.

For the year ended December 31, 2000, net income before one-time charges for the acquisition of in-process research and development amounted to $184.1 million, an increase of 37% and fully diluted earnings per share amounted to $1.41, an increase of 29%. Net income after one-time charges amounted to $148.4 million in 2000, compared with $116.8 in 1999, an increase of 27%. Fully diluted EPS increased 20% to $1.14.

Net sales for the year ended December 31, 2000 amounted to $1.75 billion, an increase of 36% over the prior year. 

"We are extremely proud of our results," said Eli Hurvitz, President and CEO. "The development of the quarterly results during the year followed the pattern we indicated at the beginning of 2000. The fourth quarter was the strongest exceeding $500 million in quarterly sales. This makes us a $2 billion company in terms of revenue".

"The quarter growth was led by sales in North America and included the consolidation of our most recent acquisition, Novopharm that was consolidated into Teva's accounts as of the second quarter of 2000. Part of the synergies that we planned to create through the acquisitions of Novopharm and Copley (Copley was consolidated for the first time in the comparable quarter) are already reflected in our results but we expect to implement substantial additional ones gradually over the next 18 months," said Israel Makov, Teva's COO.

The improved results were achieved in spite of greatly increased costs for both generic and innovative research and development. R&D increased quarter over quarter by 60% to $43.6 million in the fourth quarter of 2000. Net R&D (after participations) increased quarter over quarter by 41% to $30.7 million. The extension of the strategic alliance with Lundbeck to include oral Copaxone enabled Teva to increase substantially its R&D expenditures while limiting the impact of such expenditures on its net income.

In-market global sales of Copaxone® amounted to $72.7 million, an increase of 48% over the comparable quarter of 1999. According to IMS data, Copaxone®, Teva's largest product, increased its market share in the U.S. for multiple sclerosis treatments to 26%. In-market sales of Copaxone® for the year amounted to $247 million, an increase of 54%.

"Recently published regulations in Israel permit Teva to fully adopt US GAAP. All the figures contained in this release are based on U.S. GAAP. Consequently, the comparative figures include some minor differences from those previously reported," said Dan Suesskind, CFO. "Our financial expenses decreased significantly in the fourth quarter reflecting the successful convertible debentures offering we made in October 2000."

"We are optimistic about our ability to continue Teva's strong performance record, especially in light of our U.S. generic drug pipeline of 49 pending applications," concluded Eli Hurvitz. 

It has been recommended that the Board of Directors at their meeting on March 5, 2001 declare a regular cash dividend of NIS 0.27 (approx. 6.6¢) per ADR with respect to the fourth quarter of 2000. 

Teva Pharmaceutical Industries Ltd. is Israel's largest pharmaceutical company, with over 85% of its sales outside Israel, mainly in North America and Europe. The Company develops, manufactures and markets generic and branded human pharmaceuticals and active pharmaceutical ingredients.