Taro Pharmaceutical Industries Ltd. : Taro Special Committee Continues Its Evaluation of Sun Pharma's Proposal to Acquire Taro Shares

Committed to Protecting Minority Shareholders

HAIFA BAY, Israel & HAWTHORNE, N.Y., Jan 12, 2012 (BUSINESS WIRE) --Taro Pharmaceutical Industries Ltd. ("Taro," Pink Sheets: TAROF) announced today that the Special Committee of its Board of Directors formed to evaluate the offer from Sun Pharmaceutical Industries Ltd. (Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) (together with its subsidiaries and affiliates, "Sun Pharma") continues to evaluate Sun Pharma's non-binding October 18, 2011 cash offer of $24.50 per share for all of the issued and outstanding shares of Taro not currently held by Sun Pharma.

The Special Committee continues to work diligently together with its financial and legal advisors to evaluate the terms of the Sun Pharma offer and is committed to protecting the interests of Taro's minority shareholders. The Special Committee has engaged Citigroup Global Markets Inc. as its financial advisor, Goldfarb Seligman & Co. as its Israeli legal counsel and Willkie Farr & Gallagher LLP as its U.S. legal counsel.

The Special Committee has carefully reviewed the letters recently made public from some minority shareholders regarding the offer and wants to assure minority shareholders that thoughtful consideration and evaluation of all available information will be undertaken prior to making any recommendations. The Special Committee recognizes its primary objective is to maximize value for the minority shareholders of Taro and will take all steps necessary to ensure this objective is achieved. In addition, it should be noted that there can be no assurance that any definitive offer will be made, that any such offer will be accepted, that any agreement will be executed or that any transaction will be approved or consummated.

As previously announced, the members of the Special Committee are Ilana Avidov-Mor, Dan Biran and Professor Dov Pekelman, who serves as Chairman of the Special Committee.

About Taro

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 further information on Taro Pharmaceutical Industries Ltd., please visit Taro's website at .

SAFE HARBOR STATEMENTS

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 do not describe historical facts and statements that refer or relate to events or circumstances Taro "estimates," "believes," or "expects" to happen or similar language.Although Taro believes the expectations reflected in such forward-looking statements to be based on reasonable assumptions, it can give no assurances that its expectations will be attained.Factors that could cause actual results to differ include the offer evaluated by Taro's Board of Directors, acceptance of the offer by Taro Shareholders, approval, if any required, by regulatory authorities, general domestic and international economic conditions, industry and market conditions, changes in Taro's financial position, litigation brought by any party in any court in Israel, the United States, or any country in which Taro operates, regulatory actions and legislative actions in the countries in which Taro operates, and other risks detailed from time to time in Taro's SEC reports, including its Annual Reports on Form 20-F.Forward-looking statements speak only as of the date on which they are made.Taro undertakes no obligations to update, change or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.

SOURCE: Taro Pharmaceutical Industries Ltd.

Taro Pharmaceutical Industries Ltd.

William J. Coote, 914-345-9001

VP, Treasurer

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