On Thursday 1 February at the Extraordinary General Meeting of Morphic Technologies AB (publ) a resolution was made in accordance with the Board of Directors’ proposal regarding the following:

• to increase the company’s share capital by a maximum of SEK 449,981.80 through a new issue of not more than 11,249,545 shares, of which not more than 840,000 are class A shares and not more than 11,249,545 are class B shares. The company’s shareholders shall have preferential rights to subscribe to the new shares, whereby ten (10) old shares entitle the holder to subscribe to one new share. Shareholders of class A shares are entitled to subscribe to either class A shares or class B shares. Class B shareholders are entitled to subscribe to class B shares. The subscription price shall amount to SEK10 per share. The record date for participation in the preferential rights issue shall be 9 February 2007. Subscription, by exercising subscription rights, shall be made in cash between 19 February and 9 March, 2007. The Board reserves the right to extend the subscription period. The Board shall decide on the allocation of shares to others who have subscribed for shares without the support of preferential rights, whereupon allocations shall first and foremost be allocated between those shareholders who are shareholders in the Company on the record day.

• to increase the company’s share capital by a maximum of SEK 120,000 by a new share issue of not more than 3,000,000 class B shares at a subscription rate of SEK 11 per share. The new share issue entails that the preferential rights of existing shareholders will be bypassed and intended for larger private and institutional investors. As previously mentioned, Morphic has an agreement with Östersjöstiftelsen (The Foundation for Baltic and East European Studies) that the Foundation shall subscribe to the directed placement in its entirety and guarantee a fee-exempt of MSEK 33 in issue shares on a preferential basis.

Gothenburg, 1 February 2007
The Board of Directors