Given Imaging's M2A Capsule Endoscope to be Reimbursed in Austria

Capsule Endoscopy now reimbursed for over 18 million Europeans

12 March 2003 - Yoqneam, Israel -- Given Imaging Ltd. (NASDAQ: GIVN) announced today that the Austrian Health Ministry has initiated reimbursement for capsule endoscopy throughout the Austrian hospital system. Reimbursement was effective January 1, 2003 and covers a broad range of gastrointestinal disorders to be reimbursed up to €1,300 ($1,435.00).

"We are encouraged that the Austrian Health Ministry has recognized the importance of capsule endoscopy. Gastroenterologists throughout Austria and their patients will now be able to benefit from Given System’s ability to aid in more definitive diagnoses of gastrointestinal disease." said Prof. Dr. Rainer Schoefl, former chairman of the Endoscopy Group of the Austrian Society of Gastroenterology and Hepatology.

"Today’s news regarding reimbursement in Austria coupled with the recently announced Portuguese reimbursement policy decision indicates that European health ministries recognize the benefits of capsule endoscopy as an important tool in diagnosing and treating gastrointestinal disorders," said Gavriel D. Meron, President and CEO of Given Imaging Ltd.

Austria has a population of 8.1 million. Following receipt of the CE Mark in Europe in May 2001, more than 350 million Europeans have access to M2A, through private payment, pre-approved payment by insurers, and out of hospital budgets.

This press release contains forward-looking statements about Given Imaging, including projections about our business, our future revenues, and our future profitability, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, words such as "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify such forward-looking statements. Those forward-looking statements are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including but not limited to the following: changes in regulatory environment, our success in implementing our sales, marketing and manufacturing plan, protection and validity of patents and other intellectual property rights, the impact of currency exchange rates, the effect of competition by other companies, the outcome of future litigation, the reimbursement policies for our product from healthcare payors, quarterly variations in operating results, the possibility of armed conflict or civil or military unrest in Israel and other risks disclosed in our filings with the U.S. Securities Exchange Commission.

19.Sept.'03