POSITIVE RESULTS IN FIRST CLINICAL STUDY WITH ANTI DIABETES COMPOUND KB3305

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| Source: Karo Pharma AB
POSITIVE RESULTS IN FIRST CLINICAL STUDY      WITH ANTI DIABETES COMPOUND KB3305


Karo Bio's compound, KB3305, for treatment of type 2 diabetes, shows robust and
predictable pharmacokinetics and the subjects are well exposed without serious
adverse events in the first phase I clinical study.

The incidence of type 2 diabetes is increasing rapidly and there is a need for
improved  pharmaceuticals with new mechanisms of action. KB3305 is a first in
class liver selective glucocorticoid antagonist that has shown excellent
efficacy and safety in several preclinical models for type 2 diabetes. This
novel mechanism of action for improvement of glycemic control has the potential
to become an important contribution to the treatment since hepatic glucose
production is elevated in patients with type 2 diabetes. In addition to glucose
lowering, KB3305 also lowers other important risk factors for type 2 diabetics
such as LDL-cholesterol, triglycerides and free fatty acid levels in plasma.

New and improved pharmaceutical formulations have been developed for KB3305 and
a phase I/IIa program was initiated in December 2007. The program is conducted
in three parts. In the first part of the program, single ascending doses have
been given to healthy volunteers. The dosing of subjects has now been
successfully completed. KB3305 shows linear pharmacokinetics and the subjects
are well exposed. No serious adverse events have been recorded. The Single
Ascending Dose study will be followed by a Multiple Ascending Dose study. In the
third part of the program, the compound will be given repeatedly to patients
with type 2 diabetes. This study design will provide preliminary data on
efficacy and safety in the target population. The entire phase I/IIa study is
anticipated to be completed during 2008.

For further information, please contact:
Per Olof Wallström, President & CEO 
Phone: +46 8 608 60 20

Per Otteskog, Senior Vice President Investor Relations 
Phone: +46 8 608 60 18

About Karo Bio 
Karo Bio is a drug discovery and development company specializing in nuclear
receptors for the development of novel pharmaceuticals. 

The Company has a strong project portfolio with innovative molecules that
primarily targets metabolic diseases such as diabetes, atherosclerosis and
dyslipidemia. In all of these areas there are significant market opportunities
and a need for new pharmaceuticals with new mechanisms of action. Karo Bio
intends to bring selected compounds within niche therapeutic areas into late
stage clinical development and, potentially, to the market. In addition to
pursuing niche opportunities, Karo Bio continues to develop compounds aimed at
treatment of broad patient populations to clinical proof of concept before
out-licensing.

In addition to the proprietary projects, Karo Bio has three strategic
collaborations with international pharmaceutical companies 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.newsroom.cision.com.