Karo Bio's Annual General Meeting

KARO BIO'S ANNUAL GENERAL MEETING At Karo Bio AB's Annual General Meeting on April 25, 2002 the following was resolved. Dividend No dividend is to be paid for the financial year 2001. Board of Directors Dana M. re-election Fowlkes Bertil re-election Hållsten Lars Ingelmark re-election Björn Nilsson new election Per-Olof re-election Mårtensson Dan Sten re-election Olsson Leon E. re-election Rosenberg John D. Baxter deputy, re-election Jan-Åke deputy, re-election Gustafsson Per Otteskog deputy, re-election At the Board Meeting following the Annual Meeting, Per-Olof Mårtensson was elected Chairman of the Board. Nomination Committee As Nomination Committee were Per-Olof Mårtensson and a representative each for Alecta Pension Insurance and SEB Fund Management elected. Incentive Program As previously reported The Board of Directors of Karo Bio AB has withdrawn its proposal to the Annual General Meeting to introduce a Stock Option Program. Before the Annual General Meeting the Board of Directors consulted with larger shareholders. The Board carefully considered the comments received in that process and deemed that the proposal would not receive 90 per cent of the votes at the General Meeting that is legally required. Based on the foregoing, the Board decided to withdraw the proposal. The Board's intention is to present a new proposal to introduce a Stock Option Program at an upcoming special General Meeting. Authorization for New Share Issue To authorize the Board to resolve on an issue of new shares with or without deviation from the shareholders' preferential rights of no more than 1,203,000 shares, whereas the share capital can increase by maximum SEK 6,015,000. Amendments to the By-Laws The Meeting resolved, in accordance with the Board's proposal, to amend § 6 in the By-Laws authorizing the Board to whenever required appoint special auditor(s) in accordance with the Swedish Companies Act and by amendment of § 4 increase the minimum and maximum amounts for the share capital. Huddinge, April 26, 2002 KARO BIO AB (publ) Information For further information, please contact Björn Nilsson, President & CEO, phone +46 8 608 60 20, or Bertil Jungmar, Chief Financial Officer, phone +46 8 608 60 52. Background Karo Bio has operations in Sweden and the United States. The Company employs 140 people. 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 400 patent cases including 128 granted patents. Karo Bio has drug discovery programs in several therapeutic areas including men and women's health care, metabolic disorders such as obesity, cardiovascular disease, diabetes, dermatology and ophthalmology. Karo Bio collaborates with major pharmaceutical companies for development of products and marketing. In these partnerships Karo Bio receives upfront payments, R&D funding, milestone payments as well as royalties on net sales when products reach the market. Karo Bio has strategic pharmaceutical drug discovery partnerships with Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth Pharmaceuticals. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/26/20020426BIT00130/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/26/20020426BIT00130/wkr0002.pdf