THE ANNUAL REPORT FOR 2007 NOW AVAILABLE ON THE KARO BIO WEB SITE

The Karo Bio annual report for 2007 is available on the company’s web site as of today, at www.karobio.com

The printed version of the annual report will be distributed to shareholders and others specifically subscribing to the printed version. It can also be ordered from Karo Bio by mail to Karo Bio AB, att. Eva Kruse, Novum, 141 57 Huddinge, Sweden, fax to +46 8 774 52 80, or by e-mail to investor@karobio.com.

For further information, please contact:
Per Otteskog, Senior Vice President Investor Relations
Phone: +46 8 608 60 18

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

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

The Company has a strong project portfolio with innovative molecules that primarily targets metabolic diseases such as diabetes, atherosclerosis and dyslipidemia. In all of these areas there are significant market opportunities and a need for new pharmaceuticals with new mechanisms of action. Karo Bio intends to bring selected compounds within niche therapeutic areas into late stage clinical development and, potentially, to the market. In addition to pursuing niche opportunities, Karo Bio continues to develop compounds aimed at treatment of broad patient populations to clinical proof of concept before out-licensing.

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 the OMX Nordic Exchange Stockholm AB since 1998 (Reuters: KARO.ST).

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

Karo Bio discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 2pm CET on April 7, 2008.