KARO BIO STRENGTHENS THE ORGANIZATION AND RECRUITS HEAD OF PRECLINICAL DEVELOPMENT

Karo Bio has recruited Dr. Anneli Hällgren as Head of Karo Bio’s preclinical development activities. Anneli Hällgren, who starts at Karo Bio in March 2006, is currently head of preclinical development at Biolipox AB.

Karo Bio has one project in clinical development and will in the coming years move additional projects into clinical development. The recruitment of Anneli Hällgren, who will be a member of Karo Bio’s management team, is an important component in the strategy to strengthen the preclinical and clinical product portfolio. ”The quality in the preclinical development activities is of central importance for our ambition to move several new projects to clinical development. I therefore welcome Anneli to Karo Bio and I am happy to have her as a coworker”, says Per-Olof Wallström, President and CEO of Karo Bio. “Anneli is a very competent and ambitious person and I am convinced that she will lead preclinical development successfully.” Anneli Hällgren presented her thesis at Uppsala University in 1977 and has specialized in in vivo pharmacology. Anneli also has a considerable experience from preclinical development in the industry and has had leading positions in a number of companies such as, Astra Zeneca, Melacure and Biolipox. KARO BIO AB For further information, please contact: Per Olof Wallström, President & Chief Executive Officer Telephone: +46-8-608 60 20 Facts about Karo Bio Karo Bio is an innovative drug discovery and development company specializing in nuclear receptors for the development of novel pharmaceuticals with focus on metabolic diseases. Karo Bio is listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998. The Company has expanded from being a drug discovery company by adding in-house preclinical development resources and competence for development of drugs to treat metabolic diseases. The Company has a strong project portfolio primarily targeting diseases such as diabetes, obesity, atherosclerosis and dyslipidemia. In addition, Karo Bio has two strategic collaborations with international pharmaceutical companies for development of innovative therapies for the treatment of common diseases. This press release is also available online at: www.karobio.com and www.waymaker.net