PHASE I STUDY WITH KB2115 IN NEW FORMULATION SUCCESFULLY COMPLETED

Karo Bio has completed a bioequivalence and food interaction study with its dyslipidemia drug KB2115 using a new pharmaceutical formulation. The new formulation, which protects the compound from the acidic environment in the stomach, will be used in the phase II program for KB2115 which is planned for the fall of 2006.

Karo Bio has now finalized a bioequivalence study of a new formulation of KB2115 which consists of enteric coated tablets, suitable for once a day dosing in patients in the continued clinical development of KB2115. The study included 34 healthy volunteers and showed that enteric coating can protect KB2115 from chemical modification in the stomach, hence removing a safety concern for longer exposure to man. The study further showed excellent pharmacokinetic properties of KB2115. In a previous clinical study, Karo Bio has shown that KB2115 significantly lowers the LDL cholesterol with up to 40 percent over a two week period. In the early exploratory phase, as well as in the first clinical study in healthy volunteers, the compound has been administered in a solution. KARO BIO AB For further information, please contact: Per Olof Wallström, President & Chief Executive Officer Telephone: 08-608 60 20; Mobile 070 942 95 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