KARO BIO ACQUIRES PRODUCT FOR TREATMENT OF COMMON COLD

Stockholm, April 10, 2015 – Karo Bio has signed an agreement to acquire the drug
research company Tanomed AB, which has developed a unique product for common
cold.
The acquisition provides Karo Bio access to a new product to relieve and prevent
progression of common cold by reinforcing the body’s own defenses to fight
common cold viruses. The patented technology is based on Swedish research in
cooperation with University of Umeå where the enzyme glucose oxidase is used in
combination with glucose to effectively counteract rhinovirus infections as well
as other viral and bacterial pathogens. Several clinical studies show that early
treatment prevents or reduces disease progression.

Karo Bio acquires 100 per cent in Tanomed valued at MSEK 20, through a share
issue. The Board of Directors of Karo Bio has an authorization from the Annual
General Meeting to issue up to 10 per cent of the registered share capital.

“This product has great international potential. We expect a market launch to
take place within 1-1,5 years,” says Anders Lönner, Executive Chairman Karo Bio.

For further information, please contact:
Henrik Palm, CFO, email henrik.palm@karobio.se, telephone +46 70 540 4014

About Karo Bio
Karo Bio is a development company focused on broadening its operations to
include projects and products closer to market. Karo Bio has several projects
approaching clinical phase. Karo Bio is based in Huddinge, Sweden and is listed
on NASDAQ Stockholm.

The information was published on April 10, 2015 at 08:00 am CET.

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