QUARTERLY REPORT JANUARY – MARCH 2006

• Karo Bio will receive a milestone payment from Wyeth for the selection of a clinical development candidate in the joint LXR project for the treatment of atherosclerosis
• KB2115 – Clinical phase I study (KBT001) successfully completed
• KB2115 – New improved pharmaceutical formulation for KB2115 approved for clinical study (KBT002)
• KB3305 – Decision to move KB3305 to clinical phase I study has been taken
• Net sales for the period amounted to MSEK 2.0 (44.5)
• The loss for the period amounted to MSEK 36.2 (4.3)
• Cash flows from operating activities for the period amounted to
MSEK -41.0 (8.5)
• Liquid assets and other short-term investments amounted to
MSEK 304.5 (189.0) at the end of the period
• Loss per share for the period amounted to SEK 0.47 (0.10)