CHANGE IN NUMBER OF SHARES AND VOTES IN KARO BIO (PUBL)

CHANGE IN NUMBER OF SHARES AND VOTES IN KARO BIO (PUBL)

Stockholm, January 31, 2011 - Karo Bio AB (publ) (Reuters: KARO.ST)
today announced with reference to Chapter 4, Section 9 of the Swedish
Financial Instruments Trading Act (SFS 1991:980) that the company's
total number of shares as per January 31, 2011 amounts to

387 063 972, corresponding to an equal number of votes. The increase in
the number of shares and votes results from an issue of 232 238 383
shares under Karo Bio's rights issue that was announced on October 26,
2010.

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

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

About Karo Bio

Karo Bio is a pharmaceutical company focused on the research and
development of innovative drugs for unmet medical needs. Karo Bio's
vision is to become a pharmaceutical company with sustainable
profitability, commercial products and a competitive project portfolio.

Karo Bio runs a number of development projects within the indication
areas cardiovascular and metabolic diseases, neuropsychiatry,
inflammation, cancer and women's health. An important foundation for the
company's activities is its unique knowledge of nuclear receptors as
target proteins for the development of novel pharmaceuticals, as well as
related mechanisms of action. Important processes and competencies
within the company include structurally based research, drug discovery,
preclinical and clinical development, and medical and regulatory
expertise.

Karo Bio has the capacity to process select compounds for niche
indications through the whole development chain, while compounds
addressing large patient groups require development collaborations or
outlicensing at some stage in the process. In addition to proprietary
projects, Karo Bio has three strategic collaborations with international
pharmaceutical companies.

Karo Bio, headquartered in Huddinge, has 70 employees, and is listed on
NASDAQ OMX Stockholm since 1998 (Reuters: KARO.ST).

Karo Bio publishes this information in accordance with the Swedish
Securities Markets Act and/or the Swedish Financial Instruments Trading
Act. The information was published on January 31, 2011, at 08:30 am CET.

This press release is also available online at:
www.karobio.se (http://www.karobio.se/) and www.newsroom.cision.com