Karolinska Development and Rosetta Capital Announce the Closing of their SEK 220 Million Strategic Transaction

STOCKHOLM – March 8, 2013. Karolinska Development AB and the life science
investor Rosetta Capital Limited (“Rosetta”) announced today that Rosetta
Capital IV LP has now acquired the minority share in Karolinska Development’s
holdings in 13 of its 25 portfolio companies for SEK 220 million, in line with
the previous announcement on December 21, 2012.
In February 2013, Karolinska Development transferred 13 of its portfolio company
holdings to a new private holding company, KDev Investments AB. Late yesterday
(CET), Rosetta acquired 7.33% of the common shares in KDev Investments AB for
SEK 110 million and all of the preference shares in the same company for a
further SEK 110 million, giving Rosetta 13.66% of the votes in KDev Investments
AB. The terms of the preference shares provide for gradually reducing returns
for Rosetta.

The consideration paid by Rosetta implies a total value of the KDev Investments
portfolio of SEK 1,501 million, about two times Karolinska Development’s
investment in the same portfolio and a 23% premium to the reported Fair value
before the announcement of the deal. For more details about the strategic deal,
please refer to Karolinska Development’s Year End Report 2012.

About the Transaction

Karolinska Development transferred 13 of its portfolio company holdings to KDev
Investments AB in exchange for all of the issued shares. There are 1,073,300
outstanding shares in KDev Investments AB. Of these, 1,000,000 are common shares
and 73,300 are preference shares. Both classes of stock have the same voting
rights per share. At closing, Rosetta has acquired 73,300 of the common shares
and all the preference shares in KDev Investments AB from Karolinska
Development.

Karolinska Development received the first tranche of EUR 23 million at closing,
which is approximately SEK 190 million at current exchange rate. The balance up
to SEK 220 million will be received in a second tranche when the total
accumulated return from KDev Investments AB has reached that amount.

About KDev Investments AB

Karolinska Development and Rosetta have entered into a Shareholder Agreement
including, among other things, governance and decision making with respect to
the portfolio companies. Karolinska Development will share governance together
with the Rosetta team, with the right to appoint the chairman at each AGM
alternating between the parties. In addition, certain decisions such as follow
-on investments and divestments, will require the consent of both parties.

KDev Investments AB consists of 13 of Karolinska Development’s holdings in
portfolio companies; Akinion Pharmaceuticals AB, Aprea AB, Axelar AB, Biosergen
AS, Clanotech AB, Dilafor AB, Dilaforette Holding AB, Inhalation Sciences in
Sweden AB, NeoDynamics AB, NovaSAID AB, Pergamum AB, Promimic AB, and Umecrine
Mood AB.

Financial Reporting Consequences

KDev Investments AB has become a joint venture of Karolinska Development
presented at Fair value. Several portfolio companies which were previously
subsidiaries in the Karolinska Development Group are now owned by KDev
Investments AB and so these companies will also be presented at Fair value. The
impact on the balance sheet and income statement of Karolinska Development AB
(publ.) resulting from this transaction will be accounted for accordingly.

For further information, please contact:
Torbjörn Bjerke, CEO, Karolinska Development AB
Phone: +46 (0)72 744 41 23, e-mail: torbjorn.bjerke@karolinskadevelopment.com

Robin Wright, CFO, Karolinska Development AB
Phone: +44 (0)7720 300025, e-mail: robin.wright@karolinskadevelopment.com

Benjamin Nordin, IRO, Karolinska Development AB
Phone: +46 (0)73 093 60 80, e-mail: benjamin.nordin@karolinskadevelopment.com

TO THE EDITORS

About Karolinska Development AB
Karolinska Development aims to create value for patients, researchers, and
investors by developing innovations from world class science into products that
can be sold or out-licensed with high returns. The business model is to: SELECT
the most commercially attractive medical innovations; DEVELOP innovations to the
stage where the greatest return on investment can be achieved; and COMMERCIALIZE
the innovations through the sale of companies or out-licensing of products. An
exclusive deal flow agreement with Karolinska Institutet Innovations AB, along
with other cooperation agreements with leading Nordic universities, delivers a
continuous flow of innovations. Today, the portfolio consists of 34 projects, of
which 15 are in clinical development. For more information, please visit
www.karolinskadevelopment.com.

Karolinska Development is listed on NASDAQ OMX. Karolinska Development may be
required to disclose the information provided herein pursuant to the Securities
Markets Act.

About Rosetta Capital

Rosetta Capital Limited is a specialist venture capital firm focused on the life
science and medical technology sectors, with a multinational team from the
venture capital, pharmaceutical and biotechnology industries. Rosetta is focused
on secondary portfolio transactions and currently manages funds comprising more
than 30 underlying companies across Europe and North America. Rosetta is
headquartered in the United Kingdom and is authorised and regulated by the
Financial Services Authority. For more information see www.rosettacapital.com.