Hawthorne, New York, August 14, 2002 – Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO) today announced that its subsidiary, Taro Pharmaceuticals U.S.A., Inc. ("Taro USA"), has purchased an interest in a 123,713 square-foot building in which it will house its U.S. research operations. Taro USA will, after renovations, occupy 37,430 square feet of the newly purchased building.

The building is located at 3 Skyline Drive, Hawthorne, New York, in the office park where Taro USA has its executive offices and distribution center. Taro USA purchased a 32% interest in the building for approximately $4.4 million.

"Taro has a long-standing commitment to R&D, with research operations in both Israel and Canada," said Barrie Levitt, M.D., Chairman of the Company. "This new center enables us to tap into the large pool of pharmaceutical research talent in the tri-state area."

Taro is a multinational, science-based pharmaceutical company dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products