CONTINUED ANNUAL GENERAL MEETING OF Karo Bio AB (PUBL)

STOCKHOLM, May 2, 2011 –  The annual general meeting of Karo Bio AB (publ) decided on April 27th, 2011 to adjourn prior to the election of board of directors. The Annual General Meeting decided to resume on Wednesday May 4th, 2011 at 17.00 CET. The continued Annual General Meeting will take place at Klara Konferens, with address Vattugatan 6, Stockholm.

The annual general meeting decided to adjourn when the proposal from the nominating committee regarding election of board of directors faced a counterproposal during the meeting. To make a complete presentation possible of the board of directors proposed by Jan Lundberg, representing the shareholders Anders Edlund and Johan Edlund, the meeting decided to adjourn and to resume the annual general meeting on Wednesday, May 4th, at 17.00 CET.

The continued annual general meeting will be held at Klara Konferens, with address Vattugatan 6, Stockholm.

A right to participate at the continued annual general meeting applies for those who have been recorded in the share register kept by Euroclear Sweden AB on April 19th, 2011, and who gave the Company notice of intent to participate at the annual general meeting no later than April 19th, 2011, at 16.00.

Shareholders who wish to be represented by proxy must be able to present valid power of attorney in writing and any other authorization documents in original at the general meeting. Legal entities must be able to present authorization documents for representatives.

Shareholders who have been recorded in the share register on April 19th, 2011, but who have not given the Company notice of intent to participate, and others who wish to attend, may give notice thereof and may participate as guests at the annual general meeting, if the annual general meeting decides accordingly. Notice can be given by e-mail to stamma@karobio.se or on the Company’s website www.karobio.se/stamma.

Proposal of Agenda

At the continued annual general meeting the following items are proposed.

1   Opening of the meeting

2   Election of chairman of the meeting

3   Preparation and approval of the voting list

4   Approval of the agenda

5   Election of one or two persons to confirm the minutes

6   The determination as to whether the meeting has been duly convened

14  Election of board members and deputy board members

15  Election of chairman of the board

16  Election of auditor

17  Resolution on guidelines regarding the appointing of nominating committee

18  Resolution as to principles for remuneration of executive management

19  Authorization of the board of directors to issue new shares

20  Closing of the meeting

For further information please contact:

Fredrik Lindgren, CEO
Mobile: +46 705 616 177

Erika Söderberg Johnson, CFO
Telephone: +46 70 720 48 20

About Karo Bio

Karo Bio is a pharmaceutical company focused on the research and development of innovative drugs for unmet medical needs. Karo Bio’s vision is to become a pharmaceutical company with sustainable profitability, commercial products and a competitive project portfolio.

Karo Bio runs a number of development projects within the indication areas cardiovascular and metabolic diseases, neuropsychiatry, inflammatory conditions, autoimmune diseases, cancer and women’s health. An important foundation for the company’s activities is its unique knowledge of nuclear receptors as target proteins for the development of novel pharmaceuticals, as well as related mechanisms of action. Important processes and competencies within the company include structurally based research, drug discovery, preclinical and clinical development, and medical and regulatory expertise.

Karo Bio has the capacity to process select compounds for niche indications through the whole development chain, while compounds addressing large patient groups require development collaborations or out-licensing at some stage in the process. In addition to proprietary projects, Karo Bio has three strategic collaborations with international pharmaceutical companies.

Karo Bio, headquartered in Huddinge, has 70 employees, and is listed on NASDAQ OMX Stockholm since 1998 (Reuters: KARO.ST).

Karo Bio publishes this information in accordance with the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was published on May 2, 2011, at 3:30 pm CET.

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