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.

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The following files are available for download:
https://www.waymaker.net/bitonline/2003/04/09/20030409BIT00280/wkr0001.doc
https://www.waymaker.net/bitonline/2003/04/09/20030409BIT00280/wkr0002.pdf