KARO BIO SPECIAL GENERAL MEETING

New share issue approved at special general meeting of the shareholders.

At Karo Bio AB’s special general meeting on Wednesday 11, 2007 the following was resolved.

The special general meeting approved the decision on a new share issue with preferential right to subscribe for existing shareholders. The rights issue includes no more than 38,706,397 shares with the following conditions in summary:
• Every two existing shares entitle to subscribe for one new share
• The subscription price is SEK 10.50 per share
• Last date for trading in the Karo Bio share including rights to participate in the share issue is April 13, 2007
• Record date for participation in the rights issue is April 18, 2007
• The subscription period is from April 24 to May 8, 2007
• Trading in subscription rights will take place April 24 to May 3, 2007
• Prospectus, subscription form and issue statement will be distributed to Karo Bio’s shareholders around April 23, 2007
• Through the rights issue, Karo Bio will raise MSEK 406 before transaction costs and assuming that the new issue is fully subscribed.

KARO BIO AB

For further information, please contact:
Per Olof Wallström, President & Chief Executive Officer
Telephone: +46 8 608 60 20

Per Otteskog, Senior Vice President
Telephone: +46 8 608 60 18

Bertil Jungmar, Chief Financial Officer
Telephone: +46 8 608 60 52.







Facts about Karo Bio
Karo Bio is a drug discovery and development company specializing in nuclear receptors for the development of novel pharmaceuticals with focus on metabolic diseases. Karo Bio has three clinical and four preclinical projects.

The company has expanded from being a drug discovery company by adding in-house preclinical and clinical development resources and competence for development of drugs to treat metabolic diseases. The company has a strong project portfolio with innovative molecules that primarily targets diseases such as diabetes, atherosclerosis and dislipidemia. In all of these areas there are significant market opportunities and a growing need for new pharmaceuticals with new mechanisms of action.

In addition to the proprietary projects Karo Bio has two strategic collaborations with international pharmaceutical companies and one biotech collaboration for development of innovative therapies for the treatment of common diseases.

Karo Bio is listed on the Stockholm Stock Exchange since 1998 (Reuters: KARO.ST).

This press release is also available online at: www.karobio.com and www.waymaker.net.