Foamix and Taro Enter License Agreement for the Development and Commercialization of Foamix's PerFoam™ 1% for the Treatment of Head Lice

Ness Ziona, Israel, October 16, 2006 --- Foamix Ltd., the leader in the development of stable, alcohol-free, topical foam delivery systems for dermatology and other topical applications, announced today that it has licensed a novel topical foam product, PerFoam™ 1% for the contemporary treatment of head lice to Taro Pharmaceutical Industries Ltd. (Haifa, Israel). Under the terms of the agreement, Foamix will transfer technology to Taro and Taro will upscale, manufacture, register and commercialize PerFoam™ 1% for distribution in Israel and the Palestinian Territories. The financial terms of the agreement were not announced. The product is scheduled to be launched in late 2008.

Permethrin (the active ingredient in PerFoam™ 1%) is the recommended compound for the treatment of lice by the American Academy of Pediatrics. However, data show that lice have developed resistance to Permethrin in shampoo, lotion and cream rinse formulations. PerFoam™ 1%, comprised of Permethrin and two proprietary enhancers, is an alcohol-free, non-irritating foam for the treatment of head lice. In a study conducted at the Laniado Medical Center (Netanya, Israel), PerFoam™ 1% proved effective in killing the lice on the first application in 54 of the 56 children (96.4%). Furthermore, in 60% of the children, lice eggs were completely eradicated after one treatment.

“The product was easily applied and caused no discomfort to the treated children. There was no occurrence of eye or skin irritation,” said Dr. Avner Shemer, senior dermatologist and Principal Investigator of the PerFoam study.

Lice are parasitic insects generally found on human heads. Preschool and elementary-age children, 3-10 years of age, and their families are infested most often from this easily spread condition. Contrary to popular perception, lice infestation remains an epidemic in the First World and it has been estimated that 10-12 million Americans, mainly infants and children, are infested yearly with lice.

“PerFoam™ 1% offers the perfect properties to treat lice. We believe that the excellent efficacy, unique safety and high usability profile of PerFoam™ 1%, will influence many more people to actively treat their head lice. We are exited to collaborate with Taro on this project,” said Foamix CEO, Dr. Dov Tamarkin.

"While working with Taro on the local Israeli market, we continue to progress in the development of this product for the USA, Europe and other parts of the world," Tamarkin added.

About Foamix

Headquartered in Ness Ziona, Israel, Foamix Ltd. develops alcohol-free, stable foam products for prescription, Over-the-Counter and cosmetic uses. Foamix’s state-of-the-art foams provide controlled delivery of a variety of active ingredients. They are also able to enhance intradermal delivery of actives, for optimal effect. The Company’s development capabilities range from initial development of foam formulations to scale-up, GMP manufacturing, preclinical and clinical studies. Foamix is a privately held company, whose business model is based on partnering with leading pharma and cosmetics companies to develop products utilizing its proprietary foam technologies. Foamix holds 3 approved patents and 28 patents pending. For additional information please visit www.foamix.co.il. Press inquiries: Marjie Hadad, Media Liaison, Foamix, Marjie@foamix.co.il; +972-54-536-5220.

About Taro

Founded in 1950, 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. Taro Pharmaceutical Industries develops, manufactures, and markets high-quality generic and branded pharmaceuticals, both prescription and over-the-counter, used by patients in countries around the world. For additional information, please visit www.taro.co.il.