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                                    FORM 6-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                        REPORT OF FOREIGN PRIVATE ISSUER

                        PURSUANT TO RULE 13a-16 OR 15d-16

                     OF THE SECURITIES EXCHANGE ACT OF 1934


                          For the Month of August 2001

                            PARADIGM GEOPHYSICAL LTD.
                 (Translation of Registrant's Name into English)

   Shenkar Street 9, Gav Yam Center No.3, P.O.B. 2061 Herzlia B, Israel 46120
                    (Address of Principal Executive Offices)


Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.

                      Form 20-F....X.... Form 40-F........

Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                             Yes........ No....X....

If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-.....................
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         On July 30, 2001 a Texas appellate court reversed and remanded for
         further proceedings a trial court decision in September, 1998, which
         had granted Paradigm Geophysical Ltd.("Paradigm") summary judgment
         declaring that Paradigm has no obligation to sell SeisX or any related
         products, under the terms of a Letter of Intent, to Geophysical Micro
         Computer Applications (International) Ltd.("GMA"). The appellate court
         concluded that fact issues exist which preclude summary judgment in
         favor of Paradigm on its claim and on GMA's counterclaim for breach of
         contract. Paradigm will pursue its rights in the apellate courts.
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                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
         the Registrant has duly caused this report to be signed on its behalf
         by the undersigned, thereunto duly authorized.

                                             PARADIGM GEOPHYSICAL LTD.
                                             (Registrant)



                                             By: /s/ Jonathan Keller
                                                     Jonathan Keller
                                                     Secretary

Dated: 6 August, 2001