Hawthorne, New York, December 23, 2004 – Taro Pharmaceutical Industries Ltd. (Nasdaq: TARO) and its affiliates and subsidiaries ("Taro") announced today that it will supply Agis Industries (1983) Ltd. ("Agis") and its subsidiary, Clay Park Labs, Inc. ("Clay Park") with Mometasone Furoate Cream USP, 0.1% ("mometasone cream"), a generic version of Schering-Plough’s Elocon® cream, pursuant to the terms of a supply agreement (the "Agreement"). Under the Agreement, the product will be manufactured by Taro and distributed by Clay Park in the United States.

Mometasone cream is a prescription topical corticosteroid product used primarily for the relief of inflammatory skin conditions. According to industry sources, U.S. sales of Elocon® cream were approximately $57 million for the 12-month period ending September 30, 2004.

Agis had received a 180-day period of marketing exclusivity as the first company to file an Abbreviated New Drug Application ("ANDA") for mometasone cream with a Paragraph IV certification. As part of the Agreement, Agis relinquished its right to this exclusivity, which permitted the FDA to grant Taro final approval of Taro’s ANDA for mometasone cream. Taro’s ANDA had also been filed with a Paragraph IV certification and received tentative approval earlier this month.

Taro Pharmaceutical Industries Ltd. 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. For further information on Taro, please visit the Company’s website at www.taro.com.

Clay Park is a subsidiary of Agis Industries (1983) Ltd., an Israeli company (TASE: AGIS) that develops, manufactures and markets pharmaceuticals, active pharmaceutical ingredients ("API") and consumer products. For further information, please visit Agis’ website at www.agisgroup.com.

Certain statements in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s mometasone cream product. 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; physician, pharmacist or patient acceptance of Taro’s mometasone cream; Taro’s or Clay Park’s ability to fulfill their obligations under the supply agreement or Clay Park’s ability to market the product effectively; 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 2003 Annual Report on Form 20-F. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update, change or revise any forward-looking statements, whether as a result of new information, additional or subsequent developments or otherwise.

FOR MORE INFORMATION
AT THE COMPANY, (914) 345-9000:

Daniel H. Saks, VP, Corporate Affairs, ext. 6208

Kevin Connelly, SVP, CFO, ext. 6338