KARO BIO ANNUAL GENERAL MEETING

At Karo Bio AB’s Annual General Meeting on Wednesday April 13, 2005 the following was resolved.

Dividend No dividend is to be paid for the financial year 2004. Board of Directors Dana M. Fowlkes re-election Lars Ingelmark re-election Ulla Litzén re-election Per-Olof Mårtensson re-election Leon E. Rosenberg re-election Per Olof Wallström new election Jan-Åke Gustafsson deputy, re-election Per-Olof Mårtensson was elected Chairman of the board. Nominating Committee The Meeting resolved that the four largest shareholders as of August 31, 2005, not being represented in the board of directors, shall appoint one representative each, which together with the chairman of the board shall be members of the nominating committee in respect of the 2006 annual general meeting. The representatives shall be appointed and announced no later than in conjunction with the company’s quarterly report for the third quarter 2005. Change of by-laws and reduction of share capital The Meeting resolved in accordance with the board’s proposal to change the par value of each share from SEK 5 to SEK 2 and to reduce the company’s share capital by SEK 92 895 354 to SEK 61 930 236 to immediately be used to cover the loss as per the adopted balance sheet. KARO BIO AB For further 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.