HAWTHORNE, N.Y.--(BUSINESS WIRE)--Jan. 16, 2003--Taro Pharmaceutical Industries Ltd. (Nasdaq:TARO) announced today that its U.S. affiliate has established a new TaroPharma division to promote proprietary prescription pharmaceutical products in the U.S., and hired a team of professional medical sales representatives through an agreement with Elan Pharmaceuticals, Inc.

Under the terms of the agreement with Elan, Taro has hired a nucleus of district sales managers and professional medical representatives. Elan announced last year that it was exiting dermatology as part of its restructuring program. This direct-to-physician sales force has extensive experience in representing pharmaceutical products directly to dermatologists, pediatricians and podiatrists.

The new Taro sales team is under the direction of Carol A. Wells, Group Vice President, Proprietary Prescription Product Marketing. Wells had similar responsibilities with Elan, and has more than 20 years of pharmaceutical industry experience. Prior to Elan, she held high level positions in sales and marketing with Dura Pharmaceuticals, which was purchased by Elan in 2000, and with both Watson Pharmaceuticals and Aventis.

"Taro's new TaroPharma division establishes direct-to-physician promotion of our proprietary product lines in the U.S. This initiative is designed to enhance Taro's presence in the fields of dermatology and pediatrics," said Barrie Levitt, M.D., Chairman of the Company.

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 more information on Taro, please visit www.taro.com.

Safe Harbor Statement

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; comments concerning Taro's expectations regarding the establishment of the new TaroPharma division, the hiring and effectiveness of employees for direct-to-physician marketing, the sales potential of Taro's proprietary prescription products, and the integration of the new employees into the existing operations of Taro. 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, slower than anticipated regulatory approval of new 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 2001 Annual Report on Form 20-F.

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