Quarterly Report April - June 2003

QUARTERLY REPORT APRIL - JUNE 2003 * A second preclinical milestone reached and milestone payment received in the Merck collaboration. * Promising animal data obtained in the AR prostate cancer project. * Drug discovery phase in obesity project with Bristol-Myers Squibb has been completed. * New share issue successfully completed and fully subscribed, generated MSEK 118.6. * Net sales increased to MSEK 50.8 (39.0). * Cash flows from operating activities improved to MSEK -0.6 (-7.9). * Operating loss excluding goodwill amortization decreased to MSEK 1.0 (26.1). The loss for the period, including goodwill amortization, decreased to MSEK 18.1 (79.7). * Cash and cash equivalents and short-term investments amounted to MSEK 273.6 (227.2) at the end of the period. * Loss per share for the period amounted to SEK 1.28 (6.22). Huddinge, July 15, 2003 Björn Nilsson President & CEO For further information, please contact Björn Nilsson, President & CEO tel. +46 8 608 60 20 or Bertil Jungmar, Chief Financial Officer, tel. +46 8 608 60 52. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/07/15/20030715BIT00010/wkr0001.doc The full report http://www.waymaker.net/bitonline/2003/07/15/20030715BIT00010/wkr0002.pdf The full report

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Karo Pharma is a specialty pharma company that develops and markets products to pharmacies and directly to healthcare providers. The share is listed on Nasdaq Stockholm in the Mid Cap segment.