Given Imaging Pre-Announces Q1 Revenues

2 April 2003 - Yoqneam, Israel -- Given Imaging Ltd (Nasdaq: GIVN) pre-announced today that revenues for the first quarter are expected to be approximately $8.7million. This represents growth in revenues for the first quarter over Q1 2002 of approximately 65%, which is less than the previously guided 100% growth over Q1 2002.

"Capsule sales grew by more than 110% over the first quarter of 2002. Systems sales grew by only 4% over the first quarter of 2002. This lag in systems sales, we believe, reflects the tendency of the 'early majority' to carefully evaluate before committing to capital spending, the worldwide economic downturn and the unexpected impact of the war in Iraq on sales that were planned for the end of the quarter," said Gavriel Meron, President and CEO of Given Imaging Ltd. "This has resulted in a healthy pipeline of deals that we expect to convert into sales going forward. We believe that our continued efforts in the performance of capsule evaluations, in reimbursement announcements and in peer reviewed publications of supportive clinical data, will enable us to achieve our guidance for 2003 revenues to increase by approximately 100% over 2002 revenues of $28.9 million."

During the quarter, approximately 10,000 capsules and 170 systems were sold globally, with 57% of revenues generated in the United States. Cumulatively, capsules sales have reached 40,000 capsules, and global system sales are close to 1,200.

Gavriel Meron added, "the fundamentals of our business model are solid; we have $29 Million cash reserves at the end of the quarter, and we expect to report further improvement in our EPS as we move closer to breakeven and profitability."

The company will provide more information when it releases first quarter 2003 results, which is expected to occur following the close of trading on April 30, 2003.

Conference Call
Given Imaging will host a conference call to further discuss this announcement on Thursday, April 3, 2003 at 10 am East Coast time. The call in number is (800) 915-4836 for US participants and (973) 317- 5319 for those outside of the US. The call will also be webcast through the Company’s website www.givenimaging.com.

About Given Imaging
Given Imaging develops, produces and markets the Given® Diagnostic System featuring the M2A(R) Capsule Endoscope, the only non-invasive method for direct visualization of the entire small intestine. The system uses a disposable miniature video camera contained in a capsule which is ingested by the patient. The M2A capsule passes naturally through the digestive tract, transmitting high quality color images, without interfering with the patients normal activities. The system received clearance from the FDA in August 2001 and received permission to affix the CE mark in May 2001. Distribution channels for the system have been established in more than 50 countries worldwide. The M2A has been utilized to diagnose a range of diseases of the small intestine including Crohns Disease, Celiac disease and other malabsorption disorders, benign and malignant tumors of the small intestine, vascular disorders, medication related small bowel injury, as well as a range of pediatric small bowel disorders. For more information, visit http://www.givenimaging.com.

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