With this statement, dated July 1, 2005, Taro Pharmaceuticals U.S.A., Inc. (“Taro”), declares that, to the best of its knowledge, Taro is in compliance in all material respects with the requirements of California Health and Safety Code §§ 119400-119402 (2005), which relate to pharmaceutical marketing practices and gifts, payments, and other incentives provided to healthcare professionals.  Taro also hereby declares that, to the best of its knowledge, Taro is in compliance in all material respects with its Comprehensive Compliance Program, described briefly below.

As required by California Law, Taro has implemented a Comprehensive Compliance Program in accordance with the Office of Inspector General of the Department of Health and Human Services April 2003 Compliance Program Guidance for Pharmaceutical Manufacturers (“OIG Guidelines”).  This Comprehensive Compliance Program includes policies for compliance with the Pharmaceutical Research and Manufacturers of America July 2002 Code on Interactions with Healthcare Professionals (“PhRMA Code”).  As a key part of the Comprehensive Compliance Program, Taro has implemented numerous standard operating procedures and corporate policies on marketing practices and interactions with healthcare professionals, including an annual dollar spending limit of $1,500 per individual healthcare professional.  Taro has trained and continues to train employees on these policies on a regular basis.  A Compliance Committee, chaired by a Chief Compliance Officer, has been established to guide and foster communication with employees, to monitor employee compliance with Taro’s policies, and to take corrective and/or disciplinary action when necessary.  To the best of its knowledge, Taro has strictly adhered to its Comprehensive Compliance Program, and Taro will update the Program as necessary to reflect any revisions to either the OIG Guidelines or the PhRMA Code.

Any interested party can call toll-free 888-TARO-USA ext. 6294 to request a printed copy of this declaration or a copy of Taro’s Comprehensive Compliance Program.