KARO BIO ANNUAL GENERAL MEETING

At Karo Bio AB’s annual general meeting on Friday April 24, 2009, the following was resolved.

Dividend
No dividend is to be paid for the financial year 2008.

Board of Directors
Bo Håkansson, new election
Johan Kördel, new election
Jon Risfelt, new election
Leon E. Rosenberg, re-election
Birgit Stattin Norinder, re-election

Leon E. Rosenberg was elected Chairman of the Board.

Auditors
PricewaterhouseCoopers AB are elected as auditors for the time until the end of the annual general meeting 2011.

Nominating Committee
The annual general meeting resolved that the four largest shareholders as of August 31, 2009, not being represented in the board of directors, shall appoint one representative each, which together with the chairman of the board shall be members of the nominating committee in respect of the 2010 annual general meeting. The representatives shall be appointed and announced no later than six months before the annual general meeting 2010.

Guidelines for remuneration of the executive management
The annual general meeting resolved to adopt the board of director’s proposal regarding guidelines for remuneration of the executive management of Karo Bio.

Changes in the articles of association
The annual general meeting resolved to adopt the board of director’s proposal regarding changes in the articles of association.

Resolved changes in the articles of association:
• It shall not be possible to appoint deputy members of the board of directors
• The paragraph concerning time limits for notice of general meetings shall be removed, as these limits already follow from the law

Resolved conditional change in the articles of association:
• Conditional on the entering into force of a change in the means of convening a general meeting in the Swedish Companies Act (2005:551), notice of a general meeting shall be issued by announcement in Post- och Inrikes Tidningar and on the company’s website. It shall be advertised in Svenska Dagbladet that notice has been issued.

For further information, please contact:
Per Olof Wallström, President & Chief Executive Officer
Telephone: +46 8 608 60 20

Per Otteskog, Senior Vice President Investor Relations
Telephone: +46 8 608 60 18

Erika Johnson, Chief Financial Officer
Telephone: +46 8 608 60 52

About Karo Bio
Karo Bio is a drug discovery and development company specializing in targeting nuclear receptors for the development of novel pharmaceuticals.

The company has a project portfolio with innovative molecules that primarily target dyslipidemia, diabetes and inflammation. In these areas, there are significant market opportunities and a need for pharmaceuticals with new mechanisms of action. Karo Bio develops compounds aimed at treating broad patient populations up to clinical proof of concept before out-licensing. In therapeutic niche areas, Karo Bio has the capacity to bring selected compounds into late stage clinical develop¬ment and, potentially, to the market. In addition to the proprietary projects, Karo Bio has three strategic collaborations with international pharmaceutical companies for development of innovative therapies for the treatment of common diseases.

Karo Bio is listed on NASDAQ OMX Stockholm since 1998 (Reuters: KARO.ST).

This press release is also available online at: www.karobio.com and www.newsroom.cision.com