Hawthorne, New York, October 17, 2002 – Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO) today clarified its plans for expansion of its European and Israeli manufacturing operations in response to recently published articles. In anticipation of future growth in demand for Taro products, the Company is exploring various opportunities for expansion of its manufacturing operations.
European Expansion
Taro is currently evaluating options for establishing manufacturing facilities in Europe. Ireland is one country under consideration. While no final decisions have been made, Taro has held discussions with the Irish IDA (Investment and Development Agency) regarding opportunities in Ireland.
"Anticipated demand for Taro products and the growth we are experiencing combine to dictate that the Company should expand its manufacturing operations," stated Barrie Levitt, M.D., Chairman of the Company. "We are exploring the locations for expansion that will provide the Company with the greatest financial and economic benefits. Countries whose policies encourage industry should provide the greatest return on investment for Taro and its shareholders."
Approved Enterprise Status in Israel
In Israel, under the Law for the Encouragement of Capital Investments, 1959, as amended, Taro currently enjoys Approved Enterprise Status, resulting in favorable tax treatment for products Taro manufactures in Israel.
The Company’s capital expenditure plan in Israel is designed to meet current and future demand for Taro products. The projects currently underway in Israel, all of which have Approved Enterprise Status, will continue as planned.
"Taro is an Israeli company and will continue to invest in Israel as long as Israel continues to maintain an environment favorable to the Company," stated Dr. Levitt. "We must, however, continue to look for opportunities around the world that will benefit Taro’s plan for growth."
Third Quarter Earnings Announcement
The Company plans to release its third quarter results on Thursday, October 24, 2002. The Company will hold a conference call that day to discuss third quarter and nine-month results.
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.
Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements that are not describing historical facts, comments concerning: Taro’s expectations regarding growth and demand for Taro products; Taro’s expansion into Europe; investing in facilities in Ireland; implementation of Taro’s capital expenditure plan in Israel; general investments in Israel. Although Taro believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ include industry and market conditions, general economic conditions, slower than anticipated regulatory approval of new generic products, changes in the laws of Israel, changes in the laws of Ireland, other regulatory actions, slower than anticipated penetration of new markets, changes in the Company’s financial position, and other risks detailed from time to time in the Company’s SEC reports, including its 2001 Annual Report on Form 20-F.