Dear Shareholder,

On August 6th 2003 Cortendo AB held an extraordinary general meeting.

At this extraordinary general meeting a resolution was passed to the effect that Cortendo’s business activities would be transferred to a wholly owned subsidiary. It was also decided that the company name in future would be Cortendo Invest AB.

The subsidiary that is wholly owned by Cortendo Invest AB now intends to undertake a new share issue, and to offer the international finance market the opportunity to subscribe to the newly issued shares. Presentations to investors began in the first week of August. The company intends to raise MEUR 13, which the board expects to satisfy the capital requirements for the next three years. Most of the capital will be used for a clinical trial in phase II b and for the development of new substances by the company.

At an extraordinary general meeting of the wholly owned subsidiary (Cortendo AB) the following permanent board members were elected: Erik Änggård, Lars Östholm, Eigil Spetalen and Jan Ahlström.
The following deputy board members were elected: Grethe Stöa-Birketvedt and Stefan Wränghede.
Erik Änggård agreed to manage the work of the board in the position of chairman.

Erik Änggård will provide additional, important expertise to the board. Erik is a Professor of Pharmacology, and works in Oxford and London. He has founded a number of biotech companies, including Charterhouse Therapeutics Ltd., Oxon Medica and Vanguard Medica. Erik Änggård will be actively involved in Cortendo’s operations and in the company’s presentations to investors, at which his lengthy international experience and broad network of contacts will be of great significance.

Information about Cortendo Invest AB and its subsidiary Cortendo AB will continue to be posted at www.cortendo.com.

Västra Frölunda 12-08-2003

Jan Ahlström