Frutarom Presents Growth of 15.3% in Sales and a Record Q1 Profit of US$11.1 M

HAIFA, Israel, May 17, 2010 -

    - Net Profit Doubled Compared to the Same Quarter in 2009
    - Record Also in Q1 Operating Profit
    - Sales in the First Quarter Increased by 15.3% and Reached US$ 113.5 M
    - Gross Profit Increased by 23.4% and Reached US$ 43.5 M
    - Operating Profit Increased by 61.9% and Reached US$ 16.6 M and
      Operating Margin Increased and Reached 14.6%
    - EBITDA Increased by 47.3% and Reached US$ 21.3 M and EBITDA Margin
      Improved and Reached 18.8%
    - Profit Before tax Increased by 121.1% and Reached US$ 15.3 M
    - Profit per Share Doubled and Reached US$ 0.19

Frutarom (LSE: FRUT, TASE: FRUT, OTC: FRUTF, Reuters: FRUTF.PK) today
presented its first quarter 2010 results.

Frutarom, one of the ten largest companies in the world in the
field of flavors and specialty fine ingredients continues to successfully
implement its rapid and profitable growth strategy, combining organic growth
and the implementation of strategic acquisitions.

Frutarom's revenues in Q1 2010, increased by 15.3% and reached
US$ 113.5 M. The increase in sales arises mainly from an organic growth in
Frutarom's core activities of flavors and specialty fine ingredients. The
merger of the three successful strategic acquisitions implemented by Frutarom
in the first half of 2009 and the strengthening of the West European
currencies and the NIS, in which most of Frutarom's sales are implemented,
against the US$, also contributed to the increase in sales.

Gross profit in Q1 2010 increased by 23.4% and reached US$
43.5 M compared to US$ 35.2 M in the same quarter in 2009; gross margin
improved and reached 38.3% compared to 35.8% in the same period in 2009.
Operating profit increased by 61.9% and reached US$ 16.6 M, compared to US$
10.2 M last year and operating margin increased and reached 14.6% compared to
10.4% in the same period in 2009.

EBITDA in Q1 2010 increased by 47.3% and reached US$ 21.3 M
compared to US$ 14.5 M in the same quarter in 2009. EBITDA margin
significantly improved and reached 18.8% compared to 14.7% in the same period
last year. Income before taxes in Q1 2010 increased at a sharp rate of 121.1%
and totaled US$ 15.3 M (13.5% of sales) compared to US$ 6.9 M (7.0% of sales)
in the same quarter last year.

Net profit in the period doubled and totaled US$ 11.1 M
compared to US$ 5.6 M in the same period last year and net margin also
increased at a sharp rate and reached 9.8% compared to 5.7% in the same
quarter last year.

Profit per share in Q1 doubled and reached US$ 0.19 compared
to US$ 0.10 per share in the same quarter last year.

Ori Yehudai, Frutarom's President and CEO, summed up and
stated: "In Q1, Frutarom achieved organic growth in sales and significantly
improved profit and margin. We are satisfied by the profitable growth trend
in the quarter and believe that it will be also continuing during the year.
As expected, we witness fine results that emerged from the steps we have
taken to strengthen and improve our competitiveness and to increase our
operating efficiency. These steps contributed to a significant increase in
the rates of gross margin, operating margin and net margin and to the
doubling of our net profit in the quarter. We will decisively continue to act
to implement our rapid growth strategy which combines organic growth and
strategic acquisitions and the two together will allow us to again double our
sales turnover in the next 4 years, to approximately US$ 1 billion".

About the Company

Frutarom is a multinational 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 1,450 people worldwide,
operates through two Divisions:

    - The Flavors Division, which develops, produces and markets
      flavor compounds and food systems.
    - The Fine Ingredients Division, 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, 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, China, Japan, Hong
Kong, India and Indonesia. 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: +972-99603800
    Email: oyehudai@frutarom.com

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