KARO BIO AND WYETH EXTEND RESEARCH COLLABORATION

KARO BIO AND WYETH EXTEND RESEARCH COLLABORATION

The Swedish company Karo Bio, listed on the OMX Nordic Exchange Stockholm 1998
(Reuters: KARO.ST), today announced that Wyeth (NYSE:WYE) and Karo Bio extended
their atherosclerosis collaboration for an additional year until August 31,
2009. The primary objective of the extension is to identify and select
development candidates for treatment of atherosclerosis and to further evaluate
additional clinical possibilities by targeting LXR.

The collaboration with Wyeth started in 2001 with the aim to develop novel
compounds for treatment of atherosclerosis with LXR as target receptor. 

“We are enthusiastic about the continuation of our joint collaboration and we
see good prospects for selection of new development candidates and for an
expansion of the clinical opportunities for compounds targeting LXR,” says Per
Olof Wallström, President of Karo Bio. 

LXR is a nuclear hormone receptor that is an important regulator of cholesterol
metabolism in mammals. LXR has many features that make it an attractive drug
development target for prevention and treatment of atherosclerosis and
dyslipidemia. Modulation of LXR with small molecule compounds has been
demonstrated to enhance the efflux of cholesterol from cells in atherosclerotic
blood vessels, resulting in a reduction in the progression of atherosclerotic
disease in selected experimental models. Modulation of LXR has also been
implicated in reducing vascular inflammation which, in addition to cholesterol,
is an important mediator of atherosclerosis. It is believed that these features
of LXR are of central importance for a new generation of drugs to treat andprevent atherosclerosis successfully. 

For further information, please contact:
Per Olof Wallström, President & Chief Executive Officer 
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 target metabolic diseases such as diabetes, atherosclerosis and
dyslipidemia. In all of these areas there are significant market opportunities
and a need for pharmaceuticals with new mechanisms of action. Karo Bio intends
to bring selected compounds within niche therapeutic areas into late stage
clinical develop¬ment 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 since 1998 (Reuters:
KARO.ST).



This press release is also available online at: www.karobio.com and
www.newsroom.cision.com