Introducing the world leader in generic pharmaceuticalsEyal Desheh, CFOBill Marth, President and CEO, Teva North America

Presentation at the 27th Annual Healthcare ConferenceMonday, January 12, 2009

�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 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

2007 sales $9.4B

2008 proforma with Barr ~$14B

~65 countries

~37,000 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)

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Source: company publications

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

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Revenues, $ bn, 2007

�With 4 strong branded operationsWith 4 strong branded operations

Multiple sclerosisMultiple sclerosis

Parkinson’sParkinson’s Respiratory &Women’s healthRespiratory &Women’s health

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

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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

Source: IMS Health, September 2008, NPA

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Big gets bigger Big gets bigger –– with Barrwith Barr

610

307

259

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

BIGBIG BIGBIGtoto

GenericBranded

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

U.S., 28 October 2008

�Globally diversified businessGlobally diversified business

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100%= $1.1bn

North America

Europe

International

$9.4bn

Israel

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

• The world’s 2nd pharmaceutical market

• A relatively low generics share

• Government aims todouble generics use in 5 years

• 50/50 JV with Kowa aims for $1bn sales in 2015

�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

31 pharma facilities in 16 countriesBarr adds 8 facilities in 3 countriesCapacity with Barr ~60 billion tablets

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Barr (global)

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®)

�TodayToday’’s discussions discussion

Introducing Teva

Financial and strategy updateFinancial and strategy update

Q&A

�Overall results for 9 months 2008Overall results for 9 months 2008

8,2378,237Sales$m

Net income$m

EPS$

6,8326,832

1,7401,7401,3821,382

2.102.101.691.69

9M 2007 9M 2008* Change

+17%+17%

+21%+21%

+20%+20%

* Net income and EPS are non GAAP results

�Sources of sales growthSources of sales growth

1,6141,315North America - pharma

Europe - pharma

International - pharma

Total - pharma

API (external sales)

Total

685621

395300

2,6942,366

148130

2,8422,366

23%

10%

32%

20%

14%

20%

2007 2008 ChangeQ3 sales, $ million

�Continued track record of growth Continued track record of growth –– Q3Q3

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1,247 1,317

2,2862,386

2,842

Q3 sales, $ million

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Note: based on Q3’08 releases of all companies

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Copaxone®

Avonex®

Betaseron®

Rebif®

Tysabri®

CopaxoneCopaxone®® is the MS therapy market leaderis the MS therapy market leader

U.S. Market share, value, %

��Cash generationCash generation

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Q3 2007 Q4 2007

Net asset purchase

Dividends distributed

Free cash flow

$ million

Q1 2008 Q2 2008 Q3 2008

$410macquisitions

$410macquisitions

332

545

746806

Cash from operations

710

$366macquisitions

$366macquisitions

��Leverage going downLeverage going down

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Selected balance sheet items, $ billion

30 Sept2007

31 Dec2007

30 Sept2008

29% 27% 24%Leverage

18.3 18.8 19.4

��2008: an exciting year2008: an exciting year

Copaxone®

Azilect®

Submissions and launches

Internationalmarkets

Global #1Record sales: run rate > $2bn

Positive results of ADAGIOTyramine study successful

Record Para IV launches in U.S. (7)Record generic submissions (150, Europe doubled)Tevagrastim®, first biogeneric launch in Europe

Exceptional growth and record sales performance

��2008: an exciting year2008: an exciting year

Acquisitions and global expansion

Infra-structureexpansion

Focus,divestments

Barr / PLIVACoGenesysBentley (Spain)Kowa JV (Japan)

Capacity: 41->51bn tablets (before Barr)Generic R&D and IPBiologics (CoGenesys)

Abic Veterinary (Israel)Ivax Diagnostics (U.S.)Human Blood Business (Hungary)Gelkaps (Germany)

��SummarySummary

Scale Teva is the world’s largest generic company and is widening the gap

Balance

Global

Growth

Core Competency

Core competency

Vertically integrated, balanced business model combines Generic, Innovative and Specialty products

Teva is a true global company, focusing on the large and growing pharmaceuticals markets

Continued expansion through a combination of organic growth and acquisitions

Creating value and growth by integration efficiency and effectiveness

It is all about long term strategic thinking and execution capabilities

��TodayToday’’s discussions discussion

Introducing Teva

Financial and strategy update

Q&AQ&A