CORRECTION OF INCORRECT INFORMATION IN THE SWEDISH PAPER DAGENS NYHETER

Dagens Nyheter (DN) has published a number of incorrect statements in relation to its review of Professor Jan-Åke Gustafsson. We choose to correct some of the most serious statements.

DN has claimed that Professor Gustafsson’s research around the estrogen receptor beta is questioned and that Karo Bio’s business idea to a great extent is based on questionable data. The statement is unfounded. From DNs article Nov. 28 it is apparent that there have been different scientific opinions about the role of estrogen receptor beta in the prostate. It is quite natural that scientists may have different views but in relation to Karo Bio the question about the role of estrogen receptor beta in the prostate is irrelevant. Karo Bio is not running prostate project with this receptor as target protein. The discovery of estrogen receptor beta has been very important and has become an important target protein for pharmaceutical development. This is demonstrated by the fact that a number of pharmaceutical companies are active in the field. Karo Bio is running a project for treatment of depression with compounds that act on estrogen receptor beta. Karo Bio also has a project with Merck & Company Inc., in the field of estrogen receptors. It is evident from a press release in 1997 (the press release is available on Karo Bio’s web site), when the collaboration between Karo Bio and Merck was announced, that the collaboration is based on Karo Bio’s drug discovery technology related to estrogen receptors, where estrogen receptor beta is a part of this collaboration. The major part of Karo Bio’s projects are outside the field of estrogen receptors. DN has today on its website under the heading “Ekonomi” published incorrect information. The paper has stated that there has been a major decline in the Karo Bio stock with up to 30% since the paper started its review of Professor Gustafsson. The paper thereby paid no attention to the correction that is required in relation to the Karo Bio new share issue of 279 MSEK and with this in consideration the stock price is virtually unchanged. KARO BIO AB For further information, please contact: Per Olof Wallström, President & Chief Executive Officer Mobile: 070/942 9520 Per Otteskog, Senior Vice President Corporate Development Mobile: 070/632 7527