TARO REJECTED SUN OFFER

Taro Pharmaceuticals rejected Sun Pharma proposals to buy remaining stake in Taro Pharmceuticals. Sun Pharma owns 36% stake in Taro, on last week proposed to increase the offer price by 23% to $9.5 each as first opinion for all shareholders. Sun offered $9 each for non promoter sharholders and $8.25 each for promoter shareholders. The Israeli company's board has stated that it did not view the two options set forth in Sun's proposal as constructive or even 'in the ballpark.' Both Sun's merger proposal which signed in 2007 and its tender offer involved that represted a reduction from $10.25 that Sun paid for Brandes' 8% minority interest in Taro, the board rejected these two options.