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July 29, 2002 4:18 p.m.
Teva Reports Record Second Quarter 2002 Results

* Net income increased 43% to $92 million, EPS up to $0.68
* Net sales increased 11% to $572 million.
* Global in-market sales of Copaxone®totaled $130 million
* Gross profit margin of 43.2%.
* Cash flow from operations of $130 million

Jerusalem, Israel, July 29, 2002 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) today reported record net income of $92 million for the second quarter ended June 30, 2002 and $0.68 per fully diluted share, an increase over the second quarter of last year of 43% and 45%, respectively. Net sales for the second quarter increased 11% to $572 million with North America accounting for 62% of these sales and Europe for 25%.

For the first 6 months of 2002, net sales were $1,117 million, an increase of 11%. Net income for the first half-year was $177 million, and EPS reached $1.32, an increase of 49% and 52% respectively, over the first half of 2001.

Teva's President and Chief Executive Officer, Israel Makov commented: "Portfolio and customer management, new product development, and global synergies have been, and continue to be the key to Teva's success. The continued improvement in our net income this quarter to 16% of sales, illustrates our leadership in these areas. Our sales growth in important markets validates our belief in the key role that cost-effective medication plays in modern healthcare. Our recent acquisitions of Bayer Classics in France and the Honeywell API business in Italy have further strengthened our global leadership position in generics. In addition, Copaxone®'s market-leading growth rate in North America is being repeated in the highly competitive European market, and is bolstering our earnings".

North American pharmaceutical sales increased by 14% over the comparable quarter of 2001. This increase is mainly due to U.S. sales of new generic products, the most significant being Tramadol and Torsemide, as well as higher Copaxone®sales. Teva's U.S. generic pipeline currently comprises 62 ANDAs, including 14 tentative approvals, with total annual brand sales of this pipeline exceeding $23 billion. So far this year, Teva has received final approval for 11 products, 10 of which have been launched. In addition, Teva has received 8 tentative approvals during the same period including the 2 products under our agreement with Impax.

Global in-market sales of Copaxone®, Teva's largest product, increased in the U.S. by 38% over the second quarter of 2001 and outside the U.S., mainly in Europe, by 60%, totaling $130 million. Teva Neuroscience successfully introduced the pre-filled ready-to-use syringe in North America, and Copaxone®made a strong entry into the European market, especially in Germany through Teva's partnership with Aventis.
Active Pharmaceutical Ingredients (API) sales, including internal sales to Teva's pharmaceutical businesses, increased by 10% over the comparable quarter. API sales to third parties were $52 million, a decrease of $3 million from the second quarter of 2001.

Financial Review
Teva's gross profit margin of 43.2% for the second quarter of 2002 continued the positive trends seen in recent quarters. This reflects a favorable product mix, an improved pricing environment, favorable currency trends as well as significant operational synergies.

Gross R&D spending for the reported quarter grew by 13% over the comparable quarter of 2001, while net R&D was 36% higher. This reflects the decrease in third party participations in innovative R&D spending, primarily due to reduced expenditures for oral Copaxone pending analysis completion next year.

Selling, General and Administrative (SG&A) expenses as a percentage of sales were 17.3% compared to 17.7% in the comparable quarter of 2001. SG&A expenses, commencing January 1, 2002, exclude the amortization of goodwill as a result of FAS 142.

Cash flow from operating activities for the quarter amounted to $130 million compared to $273 million for the full year 2001.

Dividend
The Board of Directors, at their meeting on July 28, 2002 declared a cash dividend for the second quarter of 2002 of NIS 0.43 (approx. 9.1 according to today's rate of exchange) per ADR. The date of record will be August 21, 2002 and the payment date will be September 5, 2002. Tax at a rate of 19% will be deducted at source.

Conference Call Details
Teva will host a conference call to discuss the Company's second quarter 2002 results on Monday, July 29, 2002 at 10:00 a.m. Eastern Time. The call will be webcast and can be accessed through the Company's website at www.tevapharm.com. Following the conclusion of the call, a rebroadcast will be available until August 5, 2002 midnight at the website or by calling (800) 642-1687 in the U.S. or (706) 645-9291 outside the U.S., using reservation number 4836427.

Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 35 pharmaceutical companies and among the largest generic pharmaceutical companies in the world. Over 80% of Teva's sales are in North America and Europe. The Company develops, manufactures and markets generic and innovative human 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 managements current beliefs and expectations and involve a number of known and unknown risks and uncertainties that could cause Tevas 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 risks relating to: Teva's ability to accurately predict future market conditions including pricing and margins with regard to sales of the generic version of Protonix®, potential liability for sales of generic products prior to a final resolution of outstanding patent litigation, including that relating to the generic versions of Allegra®, Neurontin®, Lotrel® Famvir® and Protonix®, Teva`s ability to successfully develop and commercialize additional pharmaceutical products, the introduction of competing generic equivalents, the extent to which Teva may obtain U.S. market exclusivity for certain of its new generic products and regulatory changes that may prevent Teva from utilizing exclusivity periods, competition from brand-name companies that are under increased pressure to counter generic products, or competitors that seek to delay the introduction of generic products, the impact of consolidation of our distributors and customers, the effects of competition on our innovative products, especially Copaxone® sales, 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, European Medicines Agency and other regulatory authority approvals, the regulatory environment and changes in the health policies and structures of various countries, our ability to achieve expected results though our innovative R&D efforts, Tevas ability to successfully identify, consummate and integrate acquisitions, potential exposure to product liability claims to the extent not covered by insurance, dependence on the effectiveness of our patents and other protections for innovative products, significant operations worldwide that may be adversely affected by terrorism, political or economical instability or major hostilities, supply interruptions or delays that could result from the complex manufacturing of our products and our global supply chain, environmental risks, fluctuations in currency, exchange and interest rates, and other factors that are discussed in Tevas Annual Report on Form 20-F and its other filings with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.