Karo Bio’s Annual General Meeting

KARO BIO’S ANNUAL GENERAL MEETING

At Karo Bio AB’s Annual General Meeting on April 25, 2002 the following
was resolved.

Dividend
No dividend is to be paid for the financial year 2001.

Board of
Directors
Dana M. re-election
Fowlkes
Bertil re-election
Hållsten
Lars Ingelmark re-election
Björn Nilsson new election
Per-Olof re-election
Mårtensson
Dan Sten re-election
Olsson
Leon E. re-election
Rosenberg
John D. Baxter deputy, re-election
Jan-Åke deputy, re-election
Gustafsson
Per Otteskog deputy, re-election

At the Board Meeting following the Annual Meeting, Per-Olof Mårtensson
was elected Chairman of the Board.

Nomination Committee
As Nomination Committee were Per-Olof Mårtensson and a representative
each for Alecta Pension Insurance and SEB Fund Management elected.

Incentive Program
As previously reported The Board of Directors of Karo Bio AB has
withdrawn its proposal to the Annual General Meeting to introduce a
Stock Option Program. Before the Annual General Meeting the Board of
Directors consulted with larger shareholders. The Board carefully
considered the comments received in that process and deemed that the
proposal would not receive 90 per cent of the votes at the General
Meeting that is legally required. Based on the foregoing, the Board
decided to withdraw the proposal.

The Board’s intention is to present a new proposal to introduce a Stock
Option Program at an upcoming special General Meeting.

Authorization for New Share Issue
To authorize the Board to resolve on an issue of new shares with or
without deviation from the shareholders’ preferential rights of no more
than 1,203,000 shares, whereas the share capital can increase by maximum
SEK 6,015,000.

Amendments to the By-Laws
The Meeting resolved, in accordance with the Board’s proposal, to amend
§ 6 in the By-Laws authorizing the Board to whenever required appoint
special auditor(s) in accordance with the Swedish Companies Act and by
amendment of § 4 increase the minimum and maximum amounts for the share
capital.

Huddinge, April 26, 2002

KARO BIO AB (publ)

Information
For further information, please contact Björn Nilsson, President & CEO,
phone +46 8 608 60 20, or Bertil Jungmar, Chief Financial Officer, phone
+46 8 608 60 52.

Background
Karo Bio has operations in Sweden and the United States. The Company
employs 140 people.

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 400 patent cases
including 128 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
development of products and marketing. In these partnerships Karo Bio
receives upfront payments, R&D funding, milestone payments as well as
royalties on net sales when products reach the market.

Karo Bio has strategic pharmaceutical drug discovery partnerships with
Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth
Pharmaceuticals.

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