QUARTERLY REPORT JANUARY - MARCH 2007

• The first phase II study with KB2115 in patients with primary hypercholesterolemia has been successfully completed and the results will be presented in June this year
• The Board of Directors of Karo Bio decided on March 26 to propose a new share issue with preferential rights that would generate MSEK 406 to the company before transaction costs. The proposal for a new share issue was approved at an extra General Shareholders Meeting on April 11
• Net sales for the period amounted to MSEK 2.0 (2.0)
• The loss for the period amounted to MSEK 51.4 (36.2)
• Cash flows from operating activities for the period amounted to MSEK -56.4 (-41.0)
• Liquid assets and other short-term investments amounted to
MSEK 173.4 (304.5) at the end of the period
• Loss per share for the period amounted to SEK 0.66 (0.47)

For further information, please contact
Per Olof Wallström, President and CEO, tel. +46 8 608 60 20,
Per Otteskog, Senior Vice President Investor Relations, tel. +46 8 608 60 18, or
Leif Carlsson, Chief Financial Officer, tel. +46 8 608 60 73.

Legal disclaimer
This financial report includes statements that are forward looking and actual results may differ materially from those stated. In addition to the factors discussed, among other factors that may affect results are developments within research programs, including development in preclinical and clinical trials, the impact of competing research programs, the effect of economic conditions, the effectiveness of the Company’s intellectual property rights and preclusions of potential third party’s intellectual property rights, technological development, exchange rate and interest rate fluctuations, and political risks.

This report has not been subject to review by the Company’s independent auditor.

Karo Bio AB (publ.), Novum, SE-141 57 Huddinge, Sweden
Telephone: +46 8 608 60 00
Fax: +46 8 774 82 61
Corporate identity number: 556309-3359
Website: www.karobio.com