KARO BIO ANNOUNCES PROSPECTUS FOR THE RIGHTS ISSUE

Stockholm, November 25, 2010. Karo Bio AB (publ) (Reuters: KARO.ST) hereby announces the publication of the prospectus for the rights issue. The prospectus has today been approved and registered by the Swedish Financial Supervisory Authority.

On October 25, 2010, the Board of Directors of Karo Bio AB (publ) (”Karo Bio”) or the “Company”) resolved to, subject to approval by the Extraordinary General Meeting, carry out a rights issue. On the Extraordinary General Meeting on November 24, 2010, it was resolved to approve the resolution by the Board of Directors. The total proceeds from the rights issues will amount to approximately SEK 325 million before transaction costs. The Board of Directors of Karo Bio has prepared a prospectus regarding the rights issue, the Swedish language version of which has been approved and registered by the Swedish Financial Supervisory Authority today, November 25, 2010. 

All shareholders with share holdings directly registered in Euroclear Sweden AB (”Euroclear”) on the record date November 29, 2010 will receive a prospectus, a pre-printed issue account statement and an application form by post to the address registered in Euroclear. Shareholders whose holdings of shares are registered with a nominee bank or other nominee will receive information and instructions directly from their bank or nominee. The prospectus will be available on Karo Bio’s website www.karobio.se (https://www.karobio.se/) and on Carnegie’s website www.carnegie.se (https://www.carnegie.se/). The printed prospectus will also be available at Karo Bio’s offices at Hälsovägen 7, in Huddinge, Sweden after December 2, 2010.