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June 27, 2001 11:32 a.m.
Impax and Teva Announce Strategic Alliance for Generic Controlled Release Products

Hayward ,Calif. and Jerusalem, Israel, June 27, 2001 - IMPAX Laboratories, Inc.(Nasdaq: IPXL) and Teva Pharmaceutical Industries Ltd.(Nasdaq:TEVA) today announced that IMPAX and a subsidiary of Teva have entered into a strategic alliance agreement for twelve controlled release generic pharmaceutical products. UBS Warburg LLC acted as an advisor to IMPAX in this transaction.

The agreement grants Teva exclusive U.S. marketing rights and an option to acquire exclusive marketing rights in the rest of North America, South America, the European Union, and Israel for the following:
Five IMPAX products currently pending approval at the U.S. Food and Drug Administration (FDA);
An option to acquire exclusive marketing rights to one other IMPAX product currently pending approval at the FDA;
Three products currently under development; and
Three additional products to be mutually agreed upon.

As part of the transaction, IMPAX will receive up to $22 million through attainment of certain milestones. As an additional sign of its confidence in IMPAX, Teva will invest $15 million in the equity of IMPAX to be made according to a fixed schedule through June 2002.

"This strategic alliance with Teva is a milestone event for IMPAX and is a strong affirmation of our development capabilities and the talents of our drug delivery development team," stated Barry R. Edwards, IMPAX's Co-Chief Executive Officer. "Teva is a world-class marketer of generic pharmaceuticals and we are pleased to have the opportunity to take advantage of that strength."

"We are glad about this opportunity to collaborate with IMPAX. We see this agreement as an integral step in our strategy of consistently upgrading and expanding our pipeline and making high value technology based products available to our customers and to consumers," said William Fletcher, President and CEO of Teva North America.

IMPAX Laboratories, Inc. is a technology based specialty pharmaceutical company applying its formulation expertise and drug delivery technology to the development of controlled-release and niche generics in addition to the development of branded products. IMPAX markets its generic products through its Global Pharmaceuticals division and intends to market its branded products through the IMPAX Pharmaceuticals division. IMPAX Laboratories is headquartered in Hayward, California, and has a full range of capabilities in its Hayward and Philadelphia facilities.

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 and branded pharmaceuticals and active pharmaceutical ingredients.

Safe Harbor Statement under the U. S. Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which express the current beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause Teva's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include Teva's ability to successfully develop and commercialize additional pharmaceutical products, the introduction of competitive generic products, the impact of competition from brand-name companies that sell their own generic products or successfully extend the exclusivity period of their branded products, Teva's ability to rapidly integrate the operations of acquired businesses, the availability of product liability coverage in the current insurance market, the impact of pharmaceutical industry regulation and pending legislation that could affect the pharmaceutical industry, the difficulty of predicting U.S. Food and Drug Administration ("FDA") and other regulatory authority approvals, the regulatory environment and changes in the health policies and structure of various countries, acceptance and demand for new pharmaceutical products and new therapies, uncertainties regarding market acceptance of innovative products newly launched, currently being sold or in development, the impact of restructuring of clients, reliance on strategic alliances, exposure to product liability claims, dependence on patent and other protections for innovative products, fluctuations in currency, exchange and interest rates, operating results and other factors that are discussed in Teva's Annual Report on Form 20-F and its other filings with the U.S. Securities and Exchange Commission ("SEC"). Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.