KARO BIO ANNOUNCES PROSPECTUS FOR THE RIGHTS ISSUE

KARO BIO ANNOUNCES PROSPECTUS FOR THE RIGHTS ISSUE

Stockholm, November 25, 2010. Karo Bio AB (publ) (Reuters: KARO.ST)
hereby announces the publication of the prospectus for the rights issue.
The prospectus has today been approved and registered by the Swedish
Financial Supervisory Authority.

On October 25, 2010, the Board of Directors of Karo Bio AB (publ) (”Karo
Bio”) or the “Company”) resolved to, subject to approval by the
Extraordinary General Meeting, carry out a rights issue. On the
Extraordinary General Meeting on November 24, 2010, it was resolved to
approve the resolution by the Board of Directors. The total proceeds
from the rights issues will amount to approximately SEK 325 million
before transaction costs. The Board of Directors of Karo Bio has
prepared a prospectus regarding the rights issue, the Swedish language
version of which has been approved and registered by the Swedish
Financial Supervisory Authority today, November 25, 2010. 

All shareholders with share holdings directly registered in Euroclear
Sweden AB (”Euroclear”) on the record date November 29, 2010 will
receive a prospectus, a pre-printed issue account statement and an
application form by post to the address registered in Euroclear.
Shareholders whose holdings of shares are registered with a nominee bank
or other nominee will receive information and instructions directly from
their bank or nominee. The prospectus will be available on Karo Bio's
website www.karobio.se (http://www.karobio.se/) and on Carnegie's
website www.carnegie.se (http://www.carnegie.se/). The printed
prospectus will also be available at Karo Bio's offices at Hälsovägen 7,
in Huddinge, Sweden after December 2, 2010. 

For more information please contact:
Fredrik Lindgren, CEO
Mobile: +46 705 616 177 

Erika Söderberg Johnson, CFO and VP Investor Relations
Mobile: +46 70 720 4820