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August 20, 2004 5:15 p.m.
Teva Announces Conversion Of 0.75% Convertible Debentures Due 2021

Jerusalem, Israel, August 20, 2004 - Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA) announced today that, following the exercise on July 30, 2004 of its call option, virtually all of Teva Pharmaceutical Finance N.V.'s approximately $349 million outstanding 0.75% convertible senior debentures due 2021 have been converted, with approximately 16.3 million ADRs issued to the holders of the debentures.

"As we expected, the debenture holders preferred the conversion to Teva shares over their redemption for cash, and we appreciate the vote of confidence in Teva," said Dan Suesskind, Chief Financial Officer. "As a result, Teva's debt has been reduced by $349 million and shareholders equity has been increased by a like amount. This conversion does not affect Teva's fully diluted EPS, which has reflected the dilutive effect of the debentures since the third quarter of 2003, when their contingent conversion feature became effective."

Teva Pharmaceutical Industries Ltd., headquartered in Israel, is among the top 25 pharmaceutical companies and among the largest generic pharmaceutical companies in the world. The company develops, manufactures and markets generic and innovative human pharmaceuticals and active pharmaceutical ingredients. Close to 90% of Teva's sales are in North America and Europe.

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, including its recent acquisition of Sicor Inc., 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 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. 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.