Frutarom Continues Implementing its Rapid Growth Strategy: Acquires the Scandinavian Industrial Spices Savory Activity of Rieber & Son

Rieber & Son Industrial Spices Develops, Produces and Markets Savory Solutions

HAIFA, Israel, December 29, 2010 - Frutarom Industries Ltd. (LSE: FRUT, TASE: FRUT, OTC: FRUTF)
("Frutarom") announced today the signing of an agreement to acquire Rieber
Industrial Spices Savory activity and its fixed assets ("Rieber") of Rieber &
Son ASA from Norway, at the amount of approximately US$ 4.2 million
(Norwegian Krona 25 million). Rieber's annual turnover in 2010 expected to
total US$ 6.3 million (NOK 38 million). The acquisition will be
self-financed. The acquisition is subject to the approval of the Norwegian
Competition Authority. Frutarom estimates that the approval will be obtained
within a number of weeks.

Rieber is an activity of the international food manufacturer
Rieber & Son ASA, and engages in the development, manufacture, and marketing
of savory taste solutions (the non-sweet taste spectrum). Its product line
includes flavors, seasoning compounds, and functional ingredients for the
food industry, with a specialization in the processed meat, fish, and
convenience food sectors. Rieber's R&D, marketing, and manufacturing
capabilities are located in its operational facility in Norway. Rieber serves
a broad customer base including leading food manufacturers located mainly in
Scandinavia. Its activities are highly synergetic with Frutarom's current
savory competencies in Europe which have grown significantly in recent years
following the acquisitions of the savory activity of Chr. Hansen,
Gewurzmuller and Nesse in Germany (acquired in 2009, 2007 and 2006
respectively).

According to President and Chief Executive Officer of
Frutarom, Ori Yehudai, "The acquisition of Rieber is a continuation of
Frutarom's rapid growth strategy, and another step in the fulfillment of its
vision 'to be the preferred partner for tasty and healthy success'. This
acquisition bolsters Frutarom's presence and positioning as a leading global
producer of savory solutions. The acquisition strengthens both Frutarom's
technological capabilities and its comprehensive product offering to
customers around the world in the fields of savory flavors and functional
foods. Additionally it broadens Frutarom's extensive global customer base by
solidifying a presence in the Scandinavian market. We will strive to exploit
to the fullest extent the operational synergies in the merger of Rieber with
Frutarom's activities in order to reach the optimal operational efficiencies
and maximal savings."

"The global market for savory flavors is growing as a result
of trends in improved quality-of-life and changes in consumer behavior.
Accordingly the consumption of processed and convenience foods has grown both
inside and outside of the home. Frutarom has identified the savory sector as
an important growth engine and is investing accordingly in the development of
unique and innovative products of high added value in its sites around the
world. The acquisition of Rieber, in continuation to that of the savory
activity of Christian Hansen, Gewuerzmueller and Nesse, is a step in the
expansion and intensification of Frutarom's savory activities. We intend to
continue to invest in this important market segment and expand our savory
activities in additional countries," says Yehudai.

Frutarom has a proven track record in the execution of
successful acquisitions, utilizing operational and business synergies, and
taking advantage of cross-selling opportunities that arise as a result. We
are confident that this acquisition will also continue Frutarom's rapid and
profitable growth, creating value for our customers, employees, and
investors."

Yehudai concludes, "We are continuing to pursue strategic
acquisitions and implementing our rapid growth strategy combining internal
profitable growth with strategic acquisitions. This combination will allow us
to again double Frutarom's turnover within the next four years to US$ 1
billion. Our strong capital (US$ 351.5 in equity), the low net debt level
(US$ 29.8), and the strong cash flow we achieve, along with the support of
leading banks, will allow us to continue executing acquisitions."

About Frutarom

Frutarom is a global company operating in the global flavor
and fine ingredients markets. Frutarom has significant production and
development centers in three continents and it markets its products in five
continents to over 10,000 customers in more than 120 countries. Frutarom's
products are intended mainly for the food, beverage, flavor, fragrance,
pharmaceutical, nutraceutical, health food, functional food, food additives
and cosmetic industries.

Frutarom, which employs approximately 1,500 people worldwide,
has 2 main activities:

    - The Flavors Segment, which develops, produces and markets
    flavor compounds and food systems.

    - The Fine Ingredients Segment, which develops, produces and markets
    natural flavor extracts, natural functional food ingredients, natural
    pharma/nutraceutical extracts, specialty essential oils, citrus
    products and aroma chemicals.

Frutarom's products are produced in its plants in the US, UK,
Switzerland, Germany, Israel, China, South Africa and Turkey. The Company's
global marketing organization includes branches in Israel, the US, UK,
Switzerland, Germany, Belgium, the Netherlands, Denmark, France, Hungary,
Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, Costa
Rica, China, Japan, Hong Kong, India ,Indonesia and South Africa. The Company
also works through local agents and distributors worldwide.

For further information, visit our website:
www.frutarom.com.

    Company Contact:
    Ori Yehudai, President & CEO
    Frutarom Ltd.
    Tel: +97299603800
    Email: oyehudai@frutarom.com

Company Contact: Ori Yehudai, President & CEO, Frutarom Ltd., Tel: +97299603800, Email: oyehudai at frutarom.com