Singapore, Jan 13, 2012: Taro Pharmaceutical Industries announced that the special committee of its Board of Directors formed to evaluate the offer from Sun Pharmaceutical Industries (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 advisers 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 as its financial adviser, Goldfarb Seligman as its Israeli legal counsel and Willkie Farr & Gallagher LLP as its US 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 Ms Ilana Avidov-Mor, Mr Dan Biran and Professor Dov Pekelman, who serves as chairman of the special committee.