QUARTERLY REPORT JANUARY - MARCH 2007

QUARTERLY REPORT JANUARY - MARCH 2007

•	The first phase II study with KB2115 in patients with primary
hypercholesterolemia has been successfully completed and the results will be
presented in June this year
•	The Board of Directors of Karo Bio decided on March 26 to propose a new share
issue with preferential rights that would generate MSEK 406 to the company
before transaction costs. The proposal for a new share issue was approved at an
extra General Shareholders Meeting on April 11
•	Net sales for the period amounted to MSEK 2.0 (2.0) 
•	The loss for the period amounted to MSEK 51.4 (36.2) 
•	Cash flows from operating activities for the period amounted to MSEK -56.4  
(-41.0) 
•	Liquid assets and other short-term investments amounted to 
MSEK 173.4 (304.5) at the end of the period 
•	Loss per share for the period amounted to SEK 0.66 (0.47) 

For further information, please contact 
Per Olof Wallström, President and CEO, tel. +46 8 608 60 20, 
Per Otteskog, Senior Vice President Investor Relations, tel. +46 8 608 60 18, or
Leif Carlsson, Chief Financial Officer, tel. +46 8 608 60 73.

Legal disclaimer
This financial report includes statements that are forward looking and actual
results may differ materially from those stated. In addition to the factors
discussed, among other factors that may affect results are developments within
research programs, including development in preclinical and clinical trials, the
impact of competing research programs, the effect of economic conditions, the
effectiveness of the Company's intellectual property rights and preclusions of
potential third party's intellectual property rights, technological development,
exchange rate and interest rate fluctuations, and political risks. 

This report has not been subject to review by the Company's independent auditor.

Karo Bio AB (publ.), Novum, SE-141 57 Huddinge, Sweden 
Telephone: +46 8 608 60 00 
Fax: +46 8 774 82 61
Corporate identity number: 556309-3359
Website: www.karobio.com