KARO BIO ISSUES NOTICE OF REDUNDANCY FOR 25 EMPLOYEES

KARO BIO ISSUES NOTICE OF REDUNDANCY FOR 25 EMPLOYEES

STOCKHOLM, November 1, 2011 - As previously communicated, Karo Bio AB
(publ) is preparing a better allocation of resources and competences by
spinning off the company's preclinical activities. In preparing for the
spin-off, cost reductions are necessary. Thus, Karo Bio today has issued
a notice of redundancy for 25 employees. The final reduction in the
number of employees will be determined by ongoing business discussions
regarding the company's development projects.

 
For further information, please contact:
Henrik Palm, CFO
Phone: +46 8 608 6076
E-mail: henrik.palm@karobio.se (henrik.palm@karobio.se)

 
About Karo Bio
Karo Bio is a pharmaceutical company focused on the research and
development of innovative drugs for large medical needs. 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. The company's
goals through 2014 are to submit an application for marketing approval
of eprotirome for HeFH in EU, and to generate three clinical development
projects from its other operations. Karo Bio is based in Huddinge,
Sweden, has around 70 employees and is listed on NASDAQ OMX Stockholm.

This information is such that Karo Bio is required to disclose under the
Swedish Securities Market Act. The information was disclosed on November
1, 2011, 08:30 CET.

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