HAWTHORNE, N.Y.--(BUSINESS WIRE)--Dec. 12, 2002--Taro Pharmaceutical Industries Ltd. (Nasdaq/NMS:TARO) today announced that it has filed a patent application for the use of T2000 in the treatment of essential tremor. T2000 is Taro's patented, novel, long-acting, non-sedating barbiturate compound. The new patent application was based upon an early Phase II study, conducted for Taro, in patients with essential tremor whose dysfunction appeared to lessen after taking a short-term course of treatment with T2000. Essential tremor is a common form of tremor (involuntary shaking) with varying degrees of severity. Medical sources estimate that one-half to two percent of the adult population suffer from this disorder.

It should be noted that there can be no assurance that the drug will surmount the regulatory barriers required for commercialization, including full Phase II and Phase III safety and efficacy studies in patients with essential tremor. Most drugs that enter clinical trials do not obtain regulatory approval and there can be no assurance that T2000 will ever be of medical or commercial value. Only if Phase II and Phase III clinical studies are completed successfully can the Company submit a New Drug Application in the United States and its equivalents in Canada and elsewhere. This process can last at least several years.

In addition, the development of T2000 will depend upon the outcome of long-term toxicology and carcinogenicity studies, the results of which cannot be predicted. Moreover, tolerance to the action of the drug may develop to inhibit a sustained effect in long-term therapy. If tolerance does develop, the drug may not be commercially viable. In addition, the appearance of unanticipated significant adverse effects, at any point in the development process, may prevent the continued study of the drug and limit or eliminate any commercial value of T2000.

Taro is continuing to develop T2000 for essential tremor and other indications and is conducting research on other members of this class of compounds, as well as on other proprietary pharmaceutical projects.

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 may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, positive or negative results of Phase II and III studies for T2000, success or failure of T2000 to treat essential tremor, 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 2001 Annual Report on Form 20-F.

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