DELAY IN KB5359 DEVELOPMENT

DELAY IN KB5359 DEVELOPMENT

As one of its lead projects, Karo Bio develops selective thyroid hormone
receptor agonists for the treatment of dyslipidemia. A successful phase II study
with the most advanced compound, KB2115 was recently reported. Further
development of KB2115, has the highest priority inside the company with
additional phase II studies being initiated this year.

The second generation compound, KB5359, has generated some findings during
toxicity testing that requires further evaluation. Hence, additional studies are
needed and it is anticipated that the commencement of clinical trials will be
delayed by approximately six months.

“It is unfortunate that we will have a delay in the development of KB5359 but we
are addressing the issues with priority”, says Per Olof Wallström, CEO of Karo
Bio. “The program is otherwise making good progress and we pursue the
development of pharmacologically selective thyroid hormone receptor agonists
with confidence”.

KARO BIO AB

For further information, please contact:
Per Olof Wallström, President & Chief Executive Officer 
Telephone: +46 8 608 60 20

Per Otteskog, Senior Vice President 
Telephone: +46 8 608 60 18

Facts about Karo Bio 
Karo Bio is a drug discovery and development company specializing in nuclear
receptors for the development of novel pharmaceuticals with focus on metabolic
diseases. Karo Bio has three clinical and four preclinical projects. 

The company has expanded from being a drug discovery company by adding in-house
preclinical and clinical development resources and competence for development of
drugs to treat metabolic diseases. The company has a strong project portfolio
with innovative molecules that primarily targets diseases such as diabetes,
atherosclerosis and dyslipidemia. In all of these areas there are significant
market opportunities and a growing need for new pharmaceuticals with new
mechanisms of action. 

In addition to the proprietary projects Karo Bio has two strategic
collaborations with international pharmaceutical companies and one biotech
collaboration for development of innovative therapies for the treatment of
common diseases.

Karo Bio is listed on the OMX Nordic Exchange Stockholm AB since 1998 (Reuters:
KARO.ST).

This press release is also available online at: www.karobio.com and
www.waymaker.net