INTERIM REPORT JANUARY–MARCH 2010

KARO BIO’S PROJECTS ARE PROGRESSING • Net sales for the period amounted to MSEK - (2.2) • Net loss for the period amounted to MSEK 40.5 (45.9) • Loss per share amounted to SEK 0.26 (0.36) • Cash flow from operating activities for the period amounted to MSEK -43.0 (-41.0). Cash, cash equivalents and other short-term investments totaled MSEK 192.7 (200.4) at the end of the period • On March 11, The New England Journal of Medicine published clinical phase II results on eprotirome and its ability to further reduce serum LDL cholesterol levels in statin-treated patients • Fredrik Lindgren was appointed new President and CEO of Karo Bio and will on April 23 succeed Per Olof Wallström, who has resigned after five years with the company For further information, please contact: Per Olof Wallström, President, tel. +46 8 608 60 20 Erika Söderberg Johnson, Chief Financial Officer, tel. +46 8 608 60 52 Legal disclaimer This financial report includes statements that are forward looking and actual results may differ materially from those stated. In addition to the factors discussed, among other factors that may affect results are development within research programs, including development in preclinical and clinical trials, the impact of competing research programs, the effect of economic conditions, the effectiveness of the Company’s intellectual property rights and preclusions of potential third party’s intellectual property rights, technological development, exchange rate and interest rate fluctuations, regulatory and political risks. The information is of a nature that Karo Bio shall need to disclose according to the Securities Market Act. The information was disclosed on April 22, 2010, 08:30 am