Karo Bio's acquision of the American biotechnology company Novalon Pharmaceutical Corporation was completed today along the lines announced in Karo Bio's March 27 press release

May 10, 2000

Press Release 10 May 2000

KARO BIO COMPLETES ITS ACQUISITION OF NOVALON

Karo Bio's acquisition of the American biotechnology company Novalon Pharmaceutical Corporation was completed today along the lines announced in Karo Bio's March 27th press release. The effect of this acquisition is to significantly enhance the leading position of Karo Bio in the field of nuclear receptors. It also provides Karo Bio with a complementary leading edge technology for the development of genomics based therapeutics. As a consequence of the acquisition, the shareholders of Novalon will own 20 percent of the stock of Karo Bio.

- According to Torben Jørgensen, President of Karo Bio, through the acquisition of Novalon, Karo Bio receives access to a technology which enables the development of new innovative pharmaceuticals. In addition, Karo Bio will start several new projects within the field of nuclear receptors and the Novalon technology will in this context significantly contribute to the international competitiveness of the projects. Moreover, having significant operations in the United States as well as Europe substantially enhances Karo Bio's market exposure to potential collaborators for future development as well as institutional investors.

Novalon will be consolidated with Karo Bio as of the 1st of May 2000. As a result of the acquisition, the number of shares outstanding in Karo Bio will increase by 2,206,198 to 11,383,370. In addition, there are option rights for an additional 88,064 shares of Karo Bio stock.

Significant Dates

March 27 Karo Bio announces that an acquisition agreement has been entered into with Novalon.

April 26 Karo Bio's Annual Meeting of its shareholders approves a new share issue that provides Novalon's shareholders with a 20 percent shareholding, inclusive of option rights, in Karo Bio.

May 10 Karo Bio's acquisition of Novalon is completed.

For further information contact:
Torben Jørgensen, President, Karo Bio
Direct telephone: +46-8-608 6020
Mobile telephone: +46-70-749 0811
Email: [email protected]


Background

Karo Bio is a research-based pharmaceutical company developing pharmaceuticals for the treatment of common diseases such as osteoporosis, cancer, diabetes, and cardiovascular and metabolic diseases. The technology platform includes both nuclear receptors, where Karo Bio has a leading position in the world, and, after the acquisition of Novalon, knowledge of genomics. Development takes place in collaboration with international pharmaceutical companies. Karo Bio has collaborative agreements with such leading international pharmaceutical companies as Abbott Laboratories, Bristol-Myers Squibb, Merck & Co. Inc., Bayer AG, Ares-Serono, Millennium Pharmaceuticals Inc. and Novartis Research Foundation. Karo Bio will now have over 110 employees and operations in Stockholm, San Francisco and Durham, North Carolina. The company is listed on the "O" List of the OM Stockholm Stock Exchange.