TEVA REPORTS A 41% INCREASE IN SECOND QUARTER NET INCOME ON AN INCREASE IN SALES OF 16% EPS REACHED $0.47, UP 38%

Consolidated Statements of Income
Balance Sheet Data
Sales for the Quarter April - June 2001

Jerusalem, Israel, July 25, 2001 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported net income for the second quarter ended June 30, 2001 of $64 million or $0.47 per share fully diluted, an increase over last year of 41% and 38%, respectively*.

North American sales accounted for 63% of total second quarter sales of $ 514 million, Europe for 21%, Israel for 12%, with sales in the rest of the world accounting for 4%.

Net income for the six months ended June 30, 2001 reached $ 119 million or $ 0.87 per ADR, fully diluted, an increase of 47% and 38%, respectively*. Total sales for the six months amounted to $ 1 billion, up 29%.

Israel Makov, Teva's Chief Operating Officer stated: "We are very pleased to report results that marked another period of robust growth at Teva. These results validate our strategy of pursuing leadership in the generic industry through the introduction and execution of well-planned activities that are having a positive impact on our sales and overall profitability."

Mr. Makov added, "We are especially proud of developments in our revenue mix, which saw this quarter's 16% increase in sales driven not only by Copaxone® but also by increased sales of our existing generic products."

At the end of the quarter Teva entered into a strategic alliance with Impax Laboratories, Inc. for the development and marketing of 12 controlled release generic products. As a result, Teva's generic pipeline currently includes 56 products (including 5 from Impax) of which 14 are tentative approvals. Total annual branded sales of this pipeline are estimated at approximately $ 20 billion.

Pharmaceutical sales in North America continue to be the main revenue driver, totaling $287 million in the second quarter. During the quarter Teva launched 2 products and received tentative and final approvals from the FDA for five products. 6 internally-developed ANDA's were submitted during the quarter.

In-market global sales of Copaxone® continued to grow at more than twice the market rate and amounted to a record $91 million, up 54% from the comparable quarter in 2000 and up 24% from Q1/2001. North America accounted for 84% of Copaxone® sales.

Subsequent to the end of the quarter Teva announced FDA approval of enhanced labelling for Copaxone® to reflect the positive results of a large multicenter double-blind, placebo-controlled MRI study that showed a significant reduction in MRI monitored activity and burden of disease in patients with Relapsing Remitting Multiple Sclerosis. Meanwhile, the registration of Copaxone® in Europe, under the Mutual Recognition Procedure, is expected to be completed later this year.

Teva's overall gross margin for the quarter at 39.9% grew from 37.9% in the comparable quarter, an improvement also over the average of calendar 2000 (39.5%).
Cash flow generated from operations in the reported quarter, amounted to $70 million compared with $166 million generated during all of calendar 2000.

Subsequent to the end of the quarter, Teva reached an agreement with Mayne Nickless Limited, one of Australia's largest healthcare companies, regarding Mayne's offer for F.H. Faulding & Co. Ltd., an Australian healthcare and pharmaceutical company. Under this agreement, if Mayne is successful in its pending tender offer for Faulding shares, Teva will have an exclusive opportunity to purchase Faulding's global injectables business for $365 million.

"We are excited about our very strategic agreement to acquire Faulding's injectable business which will expand our generic business into additional areas. We expect the acquisition to contribute to our long term growth by firmly establishing Teva as a leader in generic injectables as well as positively impacting our existing generic lines." concluded Eli Hurvitz, President and Chief Executive Officer.

It has been recommended that the Board of Directors at their meeting on August 13, 2001 declare a regular cash dividend of NIS 0.27 (approx. 6.4¢) per ADR with respect to the second quarter of 2001.

Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 40 pharmaceutical companies and among the largest generic pharmaceutical companies in the world. Over 85% of Teva's sales are outside Israel, mainly in North America and Europe. The Company develops, manufactures and markets generic branded human pharmaceuticals and active pharmaceutical ingredients.

* Excluding one time charges in 2000 of $35.7 million with respect to in-process R&D.