Karo Bio's Annual General Meeting


HUDDINGE, Sweden, April 26, 2002 (PRIMEZONE) -- Karo Bio:

At Karo Bio AB's Annual General Meeting on April 25, 2002 the following was resolved.

Dividend

No dividend is to be paid for the financial year 2001.

Board of Directors:


Dana M.         re-election
 Fowlkes
Bertil          re-election
 Hallsten
Lars
 Ingelmark      re-election
Bjorn
 Nilsson        new election
Per-Olof        re-election
 Martensson
Dan Sten        re-election
 Olsson
Leon E.         re-election
 Rosenberg
John D. Baxter  deputy, re-election
Jan-Ake         deputy, re-election
 Gustafsson
Per Otteskog    deputy, re-election

At the Board Meeting following the Annual Meeting, Per-Olof Martensson was elected Chairman of the Board.

Nomination Committee

As Nomination Committee were Per-Olof Martensson and a representative each for Alecta Pension Insurance and SEB Fund Management elected.

Incentive Program

As previously reported The Board of Directors of Karo Bio AB has withdrawn its proposal to the Annual General Meeting to introduce a Stock Option Program. Before the Annual General Meeting the Board of Directors consulted with larger shareholders. The Board carefully considered the comments received in that process and deemed that the proposal would not receive 90 per cent of the votes at the General Meeting that is legally required. Based on the foregoing, the Board decided to withdraw the proposal.

The Board's intention is to present a new proposal to introduce a Stock Option Program at an upcoming special General Meeting.

Authorization for New Share Issue

To authorize the Board to resolve on an issue of new shares with or without deviation from the shareholders' preferential rights of no more than 1,203,000 shares, whereas the share capital can increase by maximum SEK 6,015,000.

Amendments to the By-Laws

The Meeting resolved, in accordance with the Board's proposal, to amend # 6 in the By-Laws authorizing the Board to whenever required appoint special auditor(s) in accordance with the Swedish Companies Act and by amendment of # 4 increase the minimum and maximum amounts for the share capital.

Huddinge, April 26, 2002

KARO BIO AB (publ)

Information


For further information, please contact Bjorn Nilsson, President & CEO, 
phone +46 8 608 60 20, or Bertil Jungmar, Chief Financial Officer, phone 
+46 8 608 60 52.

Background

Karo Bio has operations in Sweden and the United States. The Company employs 140 people.

Karo Bio has been listed on the Stockholm stock exchange (Reuters: KARO.ST) since 1998 and maintains a leading position in the field of drug discovery focused on nuclear receptors. Nuclear receptors are validated drug targets for a number of clinical indications and the Company uses proprietary technologies for the development of novel and improved therapies for major markets. Karo Bio has 400 patent cases including 128 granted patents.

Karo Bio has drug discovery programs in several therapeutic areas including men and women's health care, metabolic disorders such as obesity, cardiovascular disease, diabetes, dermatology and ophthalmology.

Karo Bio collaborates with major pharmaceutical companies for development of products and marketing. In these partnerships Karo Bio receives upfront payments, R&D funding, milestone payments as well as royalties on net sales when products reach the market.

Karo Bio has strategic pharmaceutical drug discovery partnerships with Abbott Laboratories, Bristol-Myers Squibb, Merck & Co., Inc. and Wyeth Pharmaceuticals.

This information was brought to you by Waymaker http://www.waymaker.net

The following files are available for download:


www.waymaker.net/bitonline/2002/04/26/20020426BIT00130/wkr0001.doc

www.waymaker.net/bitonline/2002/04/26/20020426BIT00130/wkr0002.pdf