Introducing the world leader in generic pharmaceuticalsEyal Desheh, CFO

UBS Global Life Sciences Conference, Grand Hyatt, New YorkSeptember 24, 2008

�Forward looking statementsForward looking statements

TODAY�S PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS, WHICH EXPRESS THE CURRENT BELIEFS AND EXPECTATIONS OF MANAGEMENT. SUCH STATEMENTS 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 RISKS RELATING TO: TEVA'S ABILITY TO ACCURATELY PREDICT FUTURE MARKET CONDITIONS, 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, 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�, 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, TEVA'S 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 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 OR REVISE ANY FORWARD-LOOKING STATEMENT, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

�TodayToday’’s discussions discussion

Introducing TevaIntroducing Teva

Financial and strategy update

Q&A

�Introducing TevaIntroducing Teva

Established 1901

$9.4bn 2007 sales

~60 countries

~28,000 employees

�Three lines of businessThree lines of business

100%=$9.4bn6%

75%

19%

Generic pharmaceuticalsGeneric pharmaceuticals

API (external only)API (external only)

Innovative pharmaceuticalsInnovative pharmaceuticals

synergies

balance

(2007)

�The worldThe world’’s number 1 generics players number 1 generics player

9.4

7.4

4.6

2.5

2.5

2.4

2.3

1.9

1.7

1.4

1.3

1.3

Teva

Sandoz

Mylan

Barr

Watson

RatioPharm

Stada

Actavis

Ranbaxy

Perrigo

Dr. Reddy's

Gedeon R.

Revenues, $ bn, 2007

Source: company publications

�With a strong branded operationWith a strong branded operation

Multiple sclerosisMultiple sclerosis

Parkinson’sParkinson’s RespiratoryRespiratory

Supports balanced business model

Marketing/branding skills for branded generics

Highly profitable business

�Vertical integration through inVertical integration through in--house Teva APIhouse Teva API

InIn--house APIhouse API

Generic & APIR&D to maximizesfirst-to-file pipeline

Guaranteed qualityingredient supply

for generics business

�Generics is all about scale Generics is all about scale –– Teva is #1Teva is #1

8%21%

6%

12%

13%

8%

11%

7%

10%

65%

39%

1997 2007

Top 461%

Top 435%

Faster organicFaster organicgrowthgrowth

Better atBetter atM&AM&A

Big players

get bigger

IMS TRx MAT June, % of total

#1 - Teva

Others

#4

#3

#2

Barr

456

294

201

224

128

91

85

84

79

58

17

12

63

236

1

114

93

89

Teva

Mylan

Novartis/Sandoz

Pfizer

Watson

Barr

Merck

GSK

Mallinckrodt

AstraZeneca

Actavis

Greenhouse

Apotex

Qualitest

Strategic partnership with customersStrategic partnership with customers

306

264

Ranking of prescription volume, total Rx’s, millions, U.S. market

Source: IMS Health, March 2008, NPA

BIGBIG BIGBIGtoto

GenericBranded

473

585

294

201

224

91

85

84

79

58

17

12

63

236

114

93

89

Teva + Barr

Mylan

Novartis/Sandoz

Pfizer

Watson

Merck

GSK

Mallinckrodt

AstraZeneca

Actavis

Greenhouse

Apotex

Qualitest

Big Gets Bigger Big Gets Bigger –– with Barrwith Barr

602

306

264

Ranking of prescription volume, total Rx’s, thousands, U.S. market

Source: IMS Health, March 2008, NPA

BIGBIG BIGBIGtoto

GenericBranded

�R&D to feed the industry's largest pipelineR&D to feed the industry's largest pipeline

U.S., 23 July 2008

�Globally diversified businessGlobally diversified business

49%58%

20%

28%

25%4%

6% 10%

1997 2007

100%= $1.1bn

North America

Europe

International

$9.4bn

Israel

�

Japan, Southern Europe

US,Western Europe

Brazil, Mexico, Russia

China, India

Focused geographical expansion strategyFocused geographical expansion strategy

Teva marketsTeva markets

Mature economies, aging population

Growingeconomies, healthcare expenditures

Growingeconomies, healthcare expenditures

Increased generics useIncreased generics use

Stable generics useStable generics use

Branded genericsBranded generics

APIAPI

• M&A• Partnerships• Portfolio

expansion

• Market share• Portfolio

expansion• Big to Big

• M&A• Partnerships• Portfolio

expansion• More focus and

resources

• Sourcing

�The Japan opportunityThe Japan opportunity

• The world’s 2nd pharmaceutical market, with a relatively low generics share

• Government aims todouble generics use in 5 years

�

50%Local expertise

50%Global expertise

Announcing our strategic partnership in Announcing our strategic partnership in JapanJapan

�������� �������������� $1bn$1bnsales in 2015

�A platform for growth in JapanA platform for growth in Japan

�Global pharmaceutical supply chainGlobal pharmaceutical supply chain

Canada (3)

US (5)

Mexico (4)

Peru

Chile Argentina

Venezuela

Israel (5)

UK (2)

Ireland

Spain

France

Hungary (2)

Czech Rep

Poland

Netherlands

Manufacturing facilities

�

Barr (global) (pending)

Successful M&A track recordSuccessful M&A track record

Index, 1995 = 100

Sales

CAGR

23%

SalesSales

CAGRCAGR

23%23%

Net income

CAGR

29%

Net Net incomeincome

CAGRCAGR

29%29%

IVAX (global)

Biogal(Hungary)

Biocraft (US)

APS Berk(UK)

Pharmachemie(Netherlands)

Copley(US)

Novopharm(Canada)

Honeywell (Italy)

Dorom(Italy)

RDL(India – API)

Bayer Classics (France)

CoGenesys(technology)

Sicor(global)

Bentley (Spain)

�2012 target2012 target

REACH

$20$20billionsales

EXCEED

20%20%net income

margin

�Pioneering Pioneering biogenericsbiogenerics beyond 2012beyond 2012

Attractive market Unique Teva assets

• > $200bn by 2015

• Patent expirations –40% of total value

• R&D, marketing investments limitnumber of competitors

• Israeli and CoGenesysR&D capabilities

• Financial resources

• Early on ex-US activities (biosimilarGCS-F - TevaGrastim®)

��Barr acquisition Barr acquisition –– compelling value creationcompelling value creation

+

Strong

Attractive

Extend

Expand

Exceed

strategic fit

economics

global leadership

portfolio / pipeline

20/20 target

��TodayToday’’s discussions discussion

Introducing Teva

Financial and strategy updateFinancial and strategy update

Q&A

��Overall results for Q2 2008Overall results for Q2 2008

2,8232,823Sales$m

Net income$m

EPS$

2,3862,386

539539515515

0.650.650.630.63

+18%+18%

+5%+5%

+3%+3%

Q2 2007 Q2 2008 Change

��Overall results for H1 2008Overall results for H1 2008

5,3595,359Sales$m

Net income$m

EPS$

4,4664,466

1,0681,068857857

1.291.291.051.05

+21%+21%

+25%+25%

+23%+23%

H1 2007 H1 2008 Change

* Non-GAAP numbers; Q1’08 includes in process R&D of $382M

��Sales growth driven by nonSales growth driven by non--US marketsUS markets

1,5051,341North America - pharma

Europe - pharma

International - pharma

Total - pharma

API

Total

762610

400292

2,6672,243

156143

2,8232,386

12%

25%

37%

19%

9%

18%

2007 2008 ChangeQ2 sales, $ million

��Growth picking up in all businessesGrowth picking up in all businesses

6%

16%

22%

11%

-1%

10%

12%

25%

37%

19%

9%

18%

North America - pharma

Europe - pharma

International - pharma

Total - pharma

API

Total

Q2 year-on-year sales growth

Q2 ‘07

Q2 ‘08

Q2 ‘07

Q2 ‘08

Q2 ‘07

Q2 ‘08

Q2 ‘07

Q2 ‘08

Q2 ‘07

Q2 ‘08

Q2 ‘07

Q2 ‘08

��Continued track record of growth Continued track record of growth –– Q2Q2

676 624

1260 13411505284 362

527610

762

89 108

240292

400

127 133

145

143

156

0

500

1,000

1,500

2,000

2,500

3,000

2004 2005 2006 2007 2008

APIPharma - InternationalPharma - EuropePharma - North America

1,176 1,227

2,172

2,386

2,823

��CopaxoneCopaxone®® growth accelerating in nongrowth accelerating in non--US US marketsmarkets

Non-US

US

Total436

563

In market sales$ million

Sales growth versus previous period

�CopaxoneCopaxone®® has become the #1 MS therapyhas become the #1 MS therapy

21%

23%

2005

32%

22%

25% Copaxone®

24%

2006 2007

Avonex®

Betaseron®

Rebif®

Tysabri®1%

25%

2004 Q2’08

24%

23%

19%

25%

8%

Market share, value, %

�Increasing R&D spendIncreasing R&D spend

7.1% 7.0%

5.9%6.2%

7.5%

R&D, in $ millionsR&D, in $ millions R&D, as % of salesR&D, as % of sales

2004 2005 2006 2007 2004 2005 2006 2007 2008target

Q22007

Q22008

��Increase in cash generationIncrease in cash generation

256155

324

512 56875

73

79

95106

106

104

142

139132

Q2 2007 Q3 2007

Net asset purchase

Dividends distributed

Free cash flow

$ million

Q4 2007 Q1 2008 Q2 2008

$410macquisitions

$410macquisitions

437

332

545

746806

Cash from operations

��Leverage going downLeverage going down

12.1 14.4 15.1

4.0 3.4 3.3 1.5 2.0 1.4

Debt - short-termDebt - long-termEquity

Selected balance sheet items, $ billion

30 June2007

31 March2008

30 June2008

31% 27% 24%Leverage

17.619.8 19.8

��Summary Summary –– or what did we learn?or what did we learn?

� That Teva is the world’s largest Generic company and it is widening the gap from the rest of the pack

� That we have a vertically integrated, balanced business model which combines generics and innovative products

� That we have a truly global geographic presence and that we focus on the growing markets

� That we will continue to drive our business using a robust combination of organic growth and acquisitions

� That we are among the best in acquiring, integrating and creating value

� And that it is all about strategy, innovation, scale and market share

��All this worked well for shareholdersAll this worked well for shareholders

50

100

150

200

250

300

1/3/

03

3/3/

03

5/3/

03

7/3/

03

9/3/

03

11/3

/03

1/3/

04

3/3/

04

5/3/

04

7/3/

04

9/3/

04

11/3

/04

1/3/

05

3/3/

05

5/3/

05

7/3/

05

9/3/

05

11/3

/05

1/3/

06

3/3/

06

5/3/

06

7/3/

06

9/3/

06

11/3

/06

1/3/

07

3/3/

07

5/3/

07

7/3/

07

9/3/

07

11/3

/07

1/3/

08

3/3/

08

5/3/

08

7/3/

08

9/3/

08

Pharma Ind Teva Ind S&P 500

The Pharma ind index is a weighted average index composed of the industry leading pharmaceutical companies (generic and innovative) with a total market cap of approximately $1 trillion (excluding Teva and Barr). The prices are adjusted for dividends and splits.

��TodayToday’’s discussions discussion

Introducing Teva

Financial and strategy update

Q&AQ&A