CHANGE OF THE NUMBER OF SHARES AND VOTES IN KARO BIO

STOCKHOLM, August 31, 2015 - Karo Bio AB (publ) today announced that the
company’s total number of shares as per August 31, 2015 amounts to 46,992,903
shares, corresponding to an equal number of votes. The decrease in the number of
shares and votes results from the recently completed reversed split of shares
where 20 shares were consolidated into 1 new share. The reversed split was
announced on July 7, 2015.

FOR FURTHER INFORMATION, PLEASE CONTACT:
Henrik Palm, CFO, telephone +46 70-540 40 14 or e-mail henrik.palm@karobio.se

ABOUT KARO BIO
Karo Bio is a development company focused on broadening its operations to
include projects and products closer to market. Karo Bio is based in Huddinge,
Sweden and is listed on Nasdaq Stockholm.

Karo Bio publishes this information in accordance with the Swedish Securities
Markets Act and/or the Swedish Financial Instruments Trading Act. The
information was submitted for publication on August 31, 2015 at 8:30 CET.

This press release is also available on www.karobio.se and
www.newsroom.cision.com.