Karo Bio completes its acquisition of Novalon

KARO BIO COMPLETES ITS ACQUISITION OF NOVALON

Karo Bio’s acquisition of the American biotechnology company Novalon
Pharmaceutical Corporation was completed today along the lines announced
th
in Karo Bio’s March 27 press release. The effect of this acquisition is
to significantly enhance the leading position of Karo Bio in the field of
nuclear receptors. It also provides Karo Bio with a complementary leading
edge technology for the development of genomics based therapeutics. As a
consequence of the acquisition, the shareholders of Novalon will own 20
percent of the stock of Karo Bio.

– According to Torben Jørgensen, President of Karo Bio, through the
acquisition of Novalon, Karo Bio receives access to a technology which
enables the development of new innovative pharmaceuticals. In addition,
Karo Bio will start several new projects within the field of nuclear
receptors and the Novalon technology will in this context significantly
contribute to the international competitiveness of the projects. Moreover,
having significant operations in the United States as well as Europe
substantially enhances Karo Bio’s market exposure to potential
collaborators for future development as well as institutional investors.
st
Novalon will be consolidated with Karo Bio as of the 1 of May 2000. As
a result of the acquisition, the number of shares outstanding in Karo Bio
will increase by 2,206,198 to 11,383,370. In addition, there are option
rights for an additional 88,064 shares of Karo Bio stock.

Significant Dates

March 27, 2000 Karo Bio announces that an acquisition
agreement has been entered into with Novalon.

April 26, 2000 Karo Bio’s Annual Meeting of its shareholders approves a
new share issue that provides Novalon’s shareholders with
a 20 percent shareholding, inclusive of option rights, in
Karo Bio.

May 10, 2000 Karo Bio’s acquisition of Novalon is completed.

For furhter information contact:

Torben Jørgensen, President, Karo Bio
Direct telephone: +46-8-608 6020
Mobile telephone: +46-70-749 0811

Background

Karo Bio is a research-based pharmaceutical company developing
pharmaceuticals for the treatment of common diseases such as osteoporosis,
cancer, diabetes, and cardiovascular and metabolic diseases. The
technology platform includes both nuclear receptors, where Karo Bio has a
leading position in the world, and, after the acquisition of Novalon,
knowledge of genomics. Development takes place in collaboration with
international pharmaceutical companies. Karo Bio has collaborative
agreements with such leading international pharmaceutical companies as
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co. Inc., Bayer AG,
Ares-Serono, Millennium Pharmaceuticals Inc. and Novartis Research
Foundation. Karo Bio will now have over 110 employees and operations in
Stockholm, San Francisco and Durham, North Carolina. The company is listed
on the “O” List of the OM Stockholm Stock Exchange.

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