HAWTHORNE, N.Y.--(BUSINESS WIRE)--March 31, 2003--Taro Pharmaceutical Industries Ltd. (Nasdaq/NMS:TARO) today announced that it has received an "AA" rating from Maalot, the Israeli affiliate of Standard & Poor's, based on the rating standard employed in Israel, for the issuance of debt securities in Israel.

This rating represents an increase from the "A+" rating previously issued by Maalot for two series of bonds issued by the Company to institutional investors in Israel in 1999 and 2000. The Company believes that the improved rating announced today reflects Taro's continued strong financial performance since those previous bond issues.

"The "AA" rating from Maalot provides Taro with enhanced financial flexibility in the event that growth opportunities arise which would make it prudent to raise capital by issuing bonds in Israel," said Barrie Levitt, M.D., Chairman of the Company.

The "AA" rating was granted by Maalot with respect to the potential issuance by Taro of up to $30,000,000 in non-convertible subordinated bonds to institutional investors in Israel.

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.

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

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 "expect," or comments describing an "opportunity," or similar statements; and comments concerning Taro's expectations regarding growth opportunities, financial flexibility in raising capital, or the size, timing or likelihood of success of any future issuance of bonds. 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.