Subscription price determined to SEK 26

Not for distribution in the US, Australia, Japan, New Zealand or Canada. The Offer does not apply to persons whose participation requires further prospectuses, filings or other measures in excess of those implied by Swedish law. Correction Subscription price determined to SEK 26 The subscription price in Karo Bio's rights issue with preferential rights for existing shareholders has been determined to SEK 26. Through the rights issue, the company will raise approximately SEK 120 million after transaction costs and assuming that the rights issue is fully subscribed. The subscription price has been determined as the average volume weighted share price for the Karo Bio share on the Stockholm Stock Exchange from and including April 2 through and including April 8, 2003, multiplied by a factor of 0.75. Existing shareholders have the right to subscribe for two new shares for every five shares held. The rights issue comprises of no more than 4,821,851 shares. As of March 7, 2003, shareholders representing approximately 29 percent of the share capital in Karo Bio have declared their support of the rights issue and intend to subscribe for their respective parts. In addition, guarantors have undertaken to subscribe for shares that have not been subscribed for by the shareholders up to an amount of in total SEK 70 million. The rights issue is subject to approval by the Annual General Meeting on April 9, 2003. Terms and time table · Each five shares held entitles to subscribe for two new shares · The subscription price is SEK 26 per share · Record date for participation in the rights issue is proposed to April 14, 2003, consequently the last date for trading in the Karo Bio shares including subscription rights is April 9, 2003 · Trading in subscription rights will take place during the period April 17 - May 5, 2003 · The subscription period is from April 17 - May 8, 2003 · Prospectus, subscription form and issue statement will be distributed to Karo Bio's shareholders beginning on or about April 15, 2003 Huddinge, April 9, 2003 KARO BIO AB For further information, please contact Björn Nilsson, President and CEO, phone +46 8 608 60 20 Bertil Jungmar, Chief Financial Officer, phone +46 8 608 60 52 Facts about Karo Bio Karo Bio has operations in Sweden and the United States. The Company has 116 employees. Karo Bio has been listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998 and maintains a leading position in the field of drug discovery focused on nuclear receptors. Nuclear receptors are validated drug targets for a number of clinical indications and the Company uses proprietary technologies for the development of novel and improved therapies for major markets. Karo Bio has 368 patent cases including 120 granted patents. Karo Bio has drug discovery programs in several therapeutic areas including men and women's health care, metabolic disorders such as obesity, cardiovascular disease, diabetes, dermatology and ophthalmology. Karo Bio collaborates with major pharmaceutical companies for the development of products and marketing. In these collaborations Karo Bio receives upfront payments, R&D funding and milestone payments, as well as royalties on net sales when products reach the market. Karo Bio has strategic pharmaceutical drug discovery collaborations with Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth Pharmaceuticals. This press release is also available online at www.karobio.com and at www.waymaker.net. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/04/09/20030409BIT00280/wkr0001.doc http://www.waymaker.net/bitonline/2003/04/09/20030409BIT00280/wkr0002.pdf