Karo Bio Extends the Subscription Period for the Ongoing New Share Issue

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.

KARO BIO EXTENDS THE SUBSCRIPTION PERIOD FOR THE ONGOING NEW SHARE ISSUE

Karo Bio has, as announced previously in a press release today, achieved
a significant milestone in a strategic research collaboration. The
subscription period for the new share issue that was decided by the Karo
Bio Board of Directors on March 6, 2003 and approved by the Annual
General Meeting on April 9, 2003 would end today in accordance with the
previous decision.

In order to provide Karo Bio’s shareholders the opportunity to evaluate
and consider the information announced as per above in conjunction with
the decision regarding subscription in the new share issue, the Karo Bio
Board of Directors has today decided to extend the subscription period
until and including Tuesday May 13, 2003.

Huddinge, May 8, 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.

————————————————————
This information was brought to you by Waymaker https://www.waymaker.net
The following files are available for download:
https://www.waymaker.net/bitonline/2003/05/08/20030508BIT01050/wkr0001.doc
https://www.waymaker.net/bitonline/2003/05/08/20030508BIT01050/wkr0002.pdf