Karolinska Development and EIF Start Landmark Co-Investment Fund for Life Science Innovation

STOCKHOLM, November 20 - Karolinska Development AB today announced that the European Investment
Fund (EIF) has entered into a co-investment agreement with the company. The
co-investment fund will be managed by Karolinska Development and used to
invest in the company's portfolio of early-stage pharmaceutical and medical
technology companies. EIF has agreed to invest 26.7 M Euros in the
co-investment fund. The agreement represents EIF's largest single investment
in the Nordic region to date.

The agreement was concluded after EIF - the EU body for investment in
small and medium-sized enterprises -carried out a thorough due diligence of
Karolinska Development's strategy, competences and processes. Investments
will be made over a four year period and the fund will be used alongside
Karolinska Development's own investments in new projects, as well as for
follow on investments in portfolio companies in the latter stages of clinical
development.

EIF's Chief Executive, Richard Pelly summarised, "Not only is
this a landmark transaction representing the largest single investment ever
made by EIF into a Swedish fund, but it also demonstrates EIF's firm
commitment to support Technology Transfer initiatives across Europe where a
funding gap for innovative SMEs has been identified. This investment will
help innovations from research organisations to reach the marketplace more
quickly and will hopefully allow spin-out companies to reach their full
potential working in conjunction with the Karolinska Development team."

Since 2003, Karolinska Development has built up a portfolio of 45
companies, making it one of the largest portfolios of life science companies
in Europe. The company forms a key part of Karolinska Institutet's Innovation
System, giving it access to world-class life science innovations from
Karolinska Institutet as well as many other leading universities throughout
the Nordic region.

Conny Bogentoft, CEO of Karolinska Development, said, "We are delighted
to be able to establish this new co-investment fund with EIF. The fact that
such an important EU body has agreed to make an investment of this magnitude
is an enormous vote of confidence in ourbusiness model and the strength of
our portfolio. This fund, together with the new share issue, due to take
place before the end of the year, will put Karolinska Development in
excellent financial shape for the important opportunities ahead. We are now
working hard to ensure successful commercial exits for several of our more
mature projects."

About Karolinska Development

Karolinska Development manages one of the largest portfolios of life
science companies in Europe. Using a unique, highly cost efficient business
model, the management team guides the commercialization of world-class life
science innovations, helping to shape the next-generation pharma industry.
Since 2003, Karolinska Development has built a portfolio of some 40
companies; among the company's projects 12 compounds are undergoing clinical
trials. The portfolio also includes a total of 19 potential first in class
products.

www.karolinskadevelopment.com

About The European Investment Fund

The European Investment Fund is the European body specialised
in small and medium-sized enterprise (SME) risk financing. The EIF is part of
the European Investment Bank (EIB) group and has a unique combination of
public and private shareholders. It is owned by the EIB, the European Union -
through the European Commission and 30 public and private financial
institutions from 17 countries.

The EIF supports high-growth innovative SMEs by means of
equity (venture capital and private equity) and guarantee instruments through
a variety of financial institutions, using either its own funds, or those
available through mandates given by the EIB, the EU, Member States or other
third parties. Complementing the EIB's product offering, the EIF has a
crucial role to play throughout the value chain of enterprise creation, from
the early stages of intellectual property development and licensing to mid
and later stage SMEs. The EIF fosters EU objectives in support of innovation,
research and regional development, entrepreneurship, growth and job creation.
For this investment, the EIF used funds from the European Investment Bank,
the European Commission (Technology Transfer Pilot) as well as its own
resources. The commercialisation of European research and Technology Transfer
specifically is regarded as a key part of the Lisbon Strategy

www.eif.org

    For more information, please contact:

    Conny Bogentoft, CEO, Karolinska Development AB
    Phone: +46-70 6886143 / e-mail: conny.bogentoft@karolinskadevelopment.com

    Piyush Unalkat, Investment Manager, European Investment Fund
    Phone: +34-91-436-0863, e-mail: unalkat@eif.org

For more information, please contact: Conny Bogentoft, CEO, Karolinska Development AB. Phone: +46-70 6886143 / e-mail: conny.bogentoft at karolinskadevelopment.com. Piyush Unalkat, Investment Manager, European Investment Fund, Phone: +34-91-436-0863, e-mail: unalkat at eif.org