TEVA REPORTS FIRST QUARTER 2001 RESULTS SALES UP 46%; NET INCOME UP 56%; EPS UP 43%

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

Jerusalem, Israel, May 2, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported net income for the first quarter ended March 31, 2001 of $54.8 million or $0.40 per share fully diluted, an increase over last year of 56% and 43% respectively.

Net sales for the first quarter of 2001 were $491 million, an increase of 46% over the comparable quarter of 2000. North America accounted for 59% of total sales, Europe for 24%, Israel for 12%, with sales in the rest of the world, accounting for 5%.

Novopharm, which Teva acquired in April 2000, was not consolidated in the comparable quarter. Not including Novopharm's results, Teva's sales increased 21% over the comparable quarter of 2000.

Israel Makov, Teva's Chief Operating Officer stated: "Our results reflect the successful implementation of our strategy of growth through acquisitions, internal product development and successful market penetration. We achieved both top and bottom line growth, trends which we expect will continue as the year progresses."

North American pharmaceutical sales, which accounted in this quarter for 54% of total sales increased by 76% over Q1/00 and amounted to $267 million. Without Novopharm, North American sales increased by 41% led by generic products introduced in late 2000 and early 2001 as well as growth of existing generic products and Copaxone ® . During the quarter Teva launched two products and received tentative and final approvals from the FDA for six products. Subsequent to the end of the quarter Teva launched two additional generic products in the U.S. market and obtained two additional generic approvals.

Pharmaceutical sales in Europe increased over the comparable quarter by 41% due to the consolidation of Novopharm's sales in Europe.

In-market global sales of Copaxone ® , Teva's largest product, continued to grow, increasing 50% over last year's first quarter, to $74 million. 88% of these sales were in North America. According to the most recently published IMS monthly data, Copaxone ® increased its market share in the U.S. to an all time high 29.8% of new prescriptions as compared to 23.9% a year ago.

In Europe, Copaxone ® has been submitted for filing under the Mutual Recognition Process.

Dr. Aaron Schwartz, VP - Global Product Division stated: "The continuing growth in sales of Copaxone ® is being fueled by new scientific evidence on the sustained efficacy of Copaxone ® and the increased exposure of data about Copaxone ® at international scientific conferences".

Teva's overall gross margin for the first quarter of 2001 was 40.1% reflecting an improvement over the average gross profit margin of 2000, which stood on 39.5%. The higher 40.8% gross margin in last year's comparable quarter reflects the fact that Human, with its inherent low gross margins, was not yet consolidated.

Cash flow generated from operations in the reported quarter, amounted to $87 million compared with $166 million generated during all of 2000.

"With a U.S. generic drug pipeline of 51 pending applications and our ongoing acquisition efforts, we are optimistic about our ability to continue Teva's strong growth." concluded Eli Hurvitz, President and Chief Executive Officer.

It has been recommended that the Board of Directors at their meeting on May 13, 2001 declare a regular cash dividend of NIS 0.27 (approx. 6.5¢) per ADR with respect to the first quarter of 2001.

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.