Taro Provides Preliminary First Half 2008 Financial Results

First Half 2008 Net Income Nears Full Year 2007 Net Income
HAWTHORNE, N.Y.--(Business Wire)--
Taro Pharmaceutical Industries Ltd. ("Taro," the "Company," Pink
Sheets: TAROF) today provided information on its financial performance
for the first half of 2008.

For the six months ended June 30, 2008, Taro estimates net sales
of approximately $166.2 million. Gross profit for the first half of
2008 was approximately $91.5 million, or 55% of sales. Operating
income for the six months ended June 30, 2008 was approximately $29.2
million, and net income was approximately $20.6 million, or $0.51 per
diluted share.

For the second quarter ended June 30, 2008, Taro estimates net
sales of approximately $88.1 million. Gross profit for the second
quarter was approximately $50.6 million, or 57% of sales. Operating
income for the second quarter was approximately $17.7 million, and net
income was approximately $13.0 million, or $0.32 per diluted share.

Chairman of the Board, Barrie Levitt, M.D., stated "Taro's net
income for the first half of 2008 has nearly matched our net income of
$21.1 million for all of 2007. Results for the first two quarters
indicate dramatic financial and operational improvements and show that
the turnaround, to which we referred several months ago, is clearly
taking place."

Selling, general and administrative ("SG&A") expenses for the
first half of 2008 were approximately $44.0 million, or 26% of sales,
with $23.8 million in the second quarter. The Company noted that its
improved earnings took place notwithstanding approximately $10 million
of expenses related to maintaining the Company's Irish facility as
well as professional and legal fees associated with the termination of
the merger agreement with Sun Pharmaceutical Industries Ltd. and
related litigation.

R&D expenses in the first half of 2008 were approximately $18.3
million or 11% of sales.

As of June 30, 2008, Taro had approximately $51.2 million in cash
or cash equivalents.

Accounts receivable - trade at June 30, 2008 were approximately
$63.9 million, which represents 69 days sales outstanding. Inventories
were approximately $75.3 million at June 30, 2008.

Total shareholders' equity at June 30, 2008 was approximately
$197.9 million. Total current liabilities were approximately $200.2
million at June 30, 2008. Long term liabilities were approximately
$90.2 million at June 30, 2008. Total liabilities were approximately
$299.4 million at June 30, 2008.

The Company cautioned that the financial information presented
herein does not constitute complete financial information, has not
been reviewed by our independent auditors and is subject to possible
change. However, subject to the foregoing caveats, the Company
believes that the information above represents the best information
currently available to Taro management.

As previously reported, the Company has been unable to file
audited financial statements for the year ended December 31, 2006 due
to questions concerning estimates for accruals for sales returns,
chargebacks, rebates, and administrative items recorded in 2005 and
prior years. The ending balances for 2006 could affect the year ended
December 31, 2007, and accordingly, the Company has been unable to
file audited financial statements for 2007 as well. The Company
continues to work diligently with its auditors to resolve these issues
and obtain completed audits for both years. The Company believes that,
in addition to fulfilling other requirements, the availability of
audited financial statements should facilitate the relisting of the
Company on NASDAQ.

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 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. 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 the Company "estimates," "believes,"
or "expects" to happen, "should" happen, or similar language, and
statements with respect to the value of the Company and its pipeline,
the Company's financial performance, including its business model and
financial performance during the last two years, relisting of the
Company on NASDAQ, availability of financial information, completion
of the 2006 and 2007 audits, estimates of financial results and
financial information for 2005-2008, review of results for prior years
and estimates of expenses and one-time charges. Although Taro
Pharmaceutical Industries Ltd. 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 possible
unavailability of financial information, completion of the audits of
2006, 2007 and/or 2008, actions of the Company's lenders, creditors
and Sun Pharmaceutical Industries Ltd. ("Sun"), including but not
limited to the outcome of the litigation with Sun referenced herein,
general domestic and international economic conditions, industry and
market conditions, changes in the Company'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 the Company'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. The Company
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.

Kekst and Company
Roanne Kulakoff, 212-521-4827

Copyright Business Wire 2008