Hawthorne, New York, July 2, 2002 – Taro Pharmaceutical Industries Ltd. (NASDAQ/NMS: TARO) today announced that Robert J. Mauro has been promoted to President of Taro’s U.S. Generic Division, a newly formed business unit within Taro Pharmaceuticals U.S.A., Inc. (Taro USA). Mr. Mauro joined Taro USA in 1996 and has served as Group Vice President of Sales since 1998.

"The new Generic Division has been established to maximize the service and value we bring to our customers as our business continues to grow," said Barrie Levitt, M.D., Chairman of the Company. "Bob’s experience in marketing prescription and over-the-counter pharmaceuticals, under the Taro label and as store brands, will help Taro to realize a broader range of opportunities through this new division."

Primarily due to rapid expansion in the U.S. generic pharmaceutical market, Taro’s annual sales have grown 225% to about $150 million between 1998 and 2001. Annual net income rose more than eleven-fold to about $26 million in the same period. Approximately 85% of the Company’s sales are generated in the U.S.

Extensive Experience As President of Taro’s U.S. Generic Division, Mr. Mauro will oversee all of Taro’s U.S. sales and generic marketing efforts. He has more than 20 years of experience in pharmaceutical sales and marketing, including positions with American Home Products (now Wyeth) and Zenith Goldline, now part of IVAX Corporation.

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 references to the continued growth of Taro’s generic pharmaceutical business in the U.S. and the new Taro division’s ability to further expand U.S. sales. Although Taro Pharmaceutical Industries Ltd. believes the expectations reflected in such forward-looking statements to be 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, slower than anticipated penetration of new markets, changes in the Company’s financial position, regulatory actions, and other risks detailed from time to time in the Company’s SEC reports, including its Prospectus dated October 1, 2001 and its Annual Report on Form 20-F for the fiscal year ended December 31, 2001.