Karo Pharma AB — Share Issue/Capital Change 2014

Apr 30, 2014

Change of the number of shares and votes in Karo Bio AB (publ)

STOCKHOLM, April 30, 2014 - Karo Bio AB (publ) today announced that the company's total number of shares as per April 30, 2014 amounts to 676,263,158 shares, corresponding to an equal number of votes. The increase in the number of shares and votes results from the recently completed rights issue of 165,315,789 shares with preferential rights for the company's shareholders and from the directed new share issue of 15,000,000 shares to Anders Lönner. Both issues were announced on February 13, 2014.

For further information, please contact:

Per Bengtsson, CEO, mobile +46 734 474 128 or e-mail per.bengtsson@karobio.se Henrik Palm, CFO, mobile +46 70 540 4014 or e-mail henrik.palm@karobio.se

About Karo Bio

Karo Bio is a research and development company focused on innovative drugs for important medical needs. The world-leading knowledge of nuclear receptors as target proteins for the development of pharmaceuticals and their related mechanisms of action, are utilized for developing novel, more effective and safer pharmaceuticals. Karo Bio is active in preclinical development focused on the areas of neuropsychiatry, inflammation, autoimmune diseases and cancer. Karo Bio is based in Huddinge, Sweden. The company has around 40 employees and is listed on NASDAQ OMX 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 April 30, 2014 at 8:30 CET.