New share issue of 600.000 shares completed

NEW SHARE ISSUE OF 600.000 SHARES COMPLETED Karo Bio AB (publ) has completed a new share issue of 600.000 shares that have been allocated to Swedish and international investors. The share price was set at 336 SEK per share providing the Company with 200 MSEK. - The new share issue is aimed at a broadening of the institutional owner base and secures Karo Bio's strategy to negotiate new strategic partnerships, to acquire new technologies and to start new projects from a strong financial position, says Torben Jørgensen, President of Karo Bio. D. Carnegie AB has acted as financial advisor for Karo Bio. Questions concerning this press release shall be directed to: Torben Jørgensen, President, Karo Bio AB, Telephone: +46-8-608 6020 Background Karo Bio is a research-based pharmaceutical company developing pharmaceuticals for the treatment of common diseases such as osteoporosis, cancer, diabetes, and cardiovascular and metabolic diseases. The technology platform includes both nuclear receptors, where Karo Bio has a leading position in the world, and, after the acquisition of Novalon, knowledge of genomics. Development takes place in collaboration with international pharmaceutical companies. Karo Bio has collaborative agreements with such leading international life science companies as Abbott Laboratories, Bristol-Myers Squibb, Merck & Co. Inc., Bayer AG, Ares-Serono, Millennium Pharmaceuticals Inc. and Novartis Research Foundation. Karo Bio will now have over 110 employees and operations in Stockholm, San Francisco and Durham, North Carolina. The company is listed on the "O" List of the OM Stockholm Stock Exchange. Homepage: www.karobio.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/18/20000518BIT00490/bit0001.doc http://www.bit.se/bitonline/2000/05/18/20000518BIT00490/bit0002.pdf