HAWTHORNE, N.Y.--(BUSINESS WIRE)--July 29, 2004--Taro Pharmaceutical Industries Ltd. (Nasdaq: TARO) reported today that its U.S. affiliate has received approval from the U.S. Food and Drug Administration ("FDA") for its Abbreviated New Drug Application ("ANDA") for clotrimazole and betamethasone dipropionate lotion ("C/B lotion").

Taro's C/B lotion is bioequivalent to Schering's Lotrisone(R) lotion. C/B lotion is a combination topical corticosteroid and antifungal product available by prescription only. It is used to treat inflammatory fungal infections of the skin, including athlete's foot. According to industry sources, U.S. sales of Lotrisone(R) lotion were approximately $39 million in 2003.

Currently, Taro has 31 filings at the FDA: 30 ANDAs, including tentative approvals for fluconazole tablets and loratadine syrup, plus one New Drug Application related to the Company's NonSpil(TM) liquid drug delivery system. In addition, the Company has multiple regulatory filings in Canada, Israel and other countries.

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.

Safe Harbor Statement

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 clotrimazole and betamethasone dipropionate lotion. 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 clotrimazole and betamethasone dipropionate lotion; 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.

    CONTACT: Taro Pharmaceutical Industries Ltd.
             Daniel Saks, 914-345-9000 ext. 6208
             or
             Kevin Connelly, 914-345-9000 ext. 6338

    SOURCE: Taro Pharmaceutical Industries Ltd.