Last year when we wrote to you, we had announced our decision to merge Taro Pharmaceutical Industries Ltd.

On May 28th, Taro sent Sun Pharma a notice for the purported termination of the merger agreement. Amongst the reasons it
has stated, was the fact that US $10.25 per share, the price Sun Pharma would have offered after due board clearance, was too
low in view of the dramatic turnaround at Taro.

Sun Pharma has responded to the letter, stating that Taro is not entitled to terminate the merger as per the terms of the
agreement. Sun Pharma remains skeptical of Taro’s turnaround. In our opinion, if not for Sun Pharma’s cash injections of approx.
$60 million last year, Taro would have virtually negative cash - hardly the “dramatic” improvement of which Taro has boasted.
Sun Pharma has challenged this termination of merger in the Supreme Court of New York.

While Sun Pharma has made every effort to fulfill its obligations under the Merger Agreement, Taro has failed to honor its side
of the bargain and take all necessary action to consummate the merger. Further, Taro has ignored all attempts to discuss, and
put forward to Taro’s shareholders, an increase in the merger consideration in order to complete the transaction.

On June 25, Sun Pharma exercised the Option under its Option Agreement to acquire all the shares held by the controlling
shareholders of Taro Pharmaceuticals Industries Limited (Taro). In connection with the exercise of the Options, Sun Pharma has
also commenced a Tender Offer for all Ordinary Shares as required by the Option Agreement. The Option Agreement also
requires that Sun Pharma specifically commence its Tender Offer at US $ 7.75 per share.