HAWTHORNE, N.Y.--(BUSINESS WIRE)--May 22, 2003--Taro Pharmaceutical Industries Ltd. (Nasdaq/NMS:TARO) today announced that the Company intends to offer up to $60 million in long-term, non-convertible debt solely to Israeli banks and institutional investors in Israel.

"These funds will further enhance Taro's financial flexibility," said Barrie Levitt, M.D., Chairman of the Company. Taro plans to utilize the proceeds from the debt offering for capital investments, potential acquisitions and for general corporate purposes.

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.

The securities offered will not be or have not been registered under the Securities Act of 1933, as amended (the "Act") and may not be offered or sold in the United States absent registration or an exemption from registration requirements.

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, such as comments describing what the company or its officers "intend," "plan," or similar statements; and comments concerning Taro's expectations regarding financial flexibility in raising capital, or the size, timing, likelihood of success, or uses of any future issuance of debt. 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 marketplace acceptance of any Taro debt security, the continuance of any particular rating by Maalot or any other rating entity, industry and market conditions, slower than anticipated regulatory approval of new generic or proprietary products, other regulatory actions, slower than anticipated penetration of new markets, changes in the Company's financial position, the situation in the Middle East and other risks detailed from time to time in the Company's SEC reports, including its Form 20-F for 2001.

    CONTACT: Taro Pharmaceutical Industries Ltd. Daniel Saks, 914/345-9000 ext. 208
             Kevin Connelly, 914/345-9000 ext. 338

    SOURCE: Taro Pharmaceutical Industries Ltd.