IN ANTICIPATION OF THE ANNUAL GENERAL MEETING OF KARO BIO AB APRIL 13, 2005

As indicated in the notice for the annual general meeting of the shareholders, the nominating committee has continued its work. The nominating committee consists of Thomas Ehlin, chairman and representing Nordea’s funds; Björn Franzon, Fourth Swedish National Pension Fund; Carl Rosén, Second Swedish National Pension Fund; and Per-Olof Mårtensson, chairman of the Karo Bio board of directors. The work has lead to the following proposals.

Number of board directors and deputy board directors (item 11 on the agenda) The nominating committee proposes that the board of directors shall consist of six board members with one deputy board member. Remuneration to the board of directors and auditors (item 12 on the agenda) The nominating committee proposes that remuneration to the board of directors be paid with SEK 390 000 to the chairman and SEK 130 000 each to the directors elected by the general meeting, who are not employed by the company or do not have consulting engagements with the company. It is also proposed SEK 110.000 in remuneration for committee work to be distributed as per resolution by the board of directors. Remuneration to the auditor is proposed to be as per approved invoice. Board of directors (item 13 on the agenda) The nominating committee proposes that Dana Fowlkes, Lars Ingelmark, Ulla Litzén, Per-Olof Mårtensson and Leon Rosenberg be re-elected as directors as well as Jan-Åke Gustafsson be re-elected as deputy director. The nomination committee also proposes that the company’s new president Per Olof Wallström be elected as new director. Per-Olof Mårtensson is proposed to be chairman. The proposal is supported by shareholders representing 39 percent of the number of shares and votes in the company. KARO BIO AB For information, please contact Per Olof Wallström, president, +46 8 608 6020 Bertil Jungmar, chief financial officer, +46 8 608 6052 Facts about Karo Bio Karo Bio has operations in Huddinge, Sweden, and 78 employees. Karo Bio has been listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998 and maintains a leading position in the field of drug discovery focused on nuclear receptors. Nuclear receptors are validated drug targets for a number of clinical indications and the Company uses proprietary technologies for the development of novel and improved therapies for major markets. Karo Bio has drug discovery programs in several therapeutic areas including women’s health care, cancer, cardiovascular disease, atherosclerosis and diabetes. Karo Bio collaborates with major pharmaceutical companies for the development of products and marketing. In these collaborations Karo Bio receives upfront payments, R&D funding and milestone payments, as well as royalties on net sales when products reach the market. Karo Bio has strategic pharmaceutical drug discovery collaborations with Merck & Co., Inc. and Wyeth Pharmaceuticals. This press release is also available online at www.karobio.com and at www.waymaker.net.