Eva-Lotta Kraft and Lars Olof Nilsson are proposed as new Board members in Morphic Technologies preceding the EGM in Gothenburg on June 27.

Right to participate
To be entitled to participate, shareholders must be registered in the shareholder’s register dated Wednesday, June 20, 2007. Any shareholder who wishes to participate in the EGM and whose shares are in the name of a nominee must arrange for their shares to be temporarily re-registered in their own name at VPC by June 20, 2007. Such shareholders are therefore advised to inform their nominees in good time before this date.

Notice of intention to participate
Intention to participate at the EGM shall be submitted no later than Wednesday, June 20, 2007 by the following means: (by post) Morphic Technologies, Box 5243, 402 24 Gothenburg, (by telephone) +46 (0)31-586-67396, (by fax) +46 (0)31-775 9061 or (by e-mail) [email protected]. Notification should include the following information regarding the shareholder: name, civic registration number or corporate identity number as well as registered shares.

Proposed Agenda
1. Opening of the Meeting
2. Election of Chairman of the Meeting
3. Preparation and approval of the voting list
4. Approval of the agenda
5. Election of one or two persons to check and verify the minutes
6. Determination of whether the Meeting has been duly convened
7. Resolution regarding Board remuneration
8. Election of Board members
9. Close of the Meeting

Proposals

Election of Board members and resolution regarding Board remuneration
A number of the company’s larger shareholders propose the election of Lars Olof Nilsson and Eva-Lotta Kraft as members of the Board. A presentation of the proposed Board members will be made available on the company’s website, www.morphic.se. Those shareholders also propose all board members not employed by the company are to receive annual remuneration amounting to SEK 200,000. Remuneration shall be based on this Meeting and shall, from this period forward, until the next AGM, be adjusted in proportion to the length of the assignment.

Karlskoga, June 2007
Morphic Technologies AB
The Board of Directors

ATTACHMENT: Presentation of proposed Board members

Shareholders of Morphic Technologies have proposed that Eva-Lotta Kraft and Lars Olof Nilsson be elected as the new Board members in the coming EGM on June 27, 2007.

Eva-Lotta Kraft is 55 years old and lives in Stockholm. Ms. Kraft has a Master degree in Chemistry from the Royal Institute of Technology in Stockholm, holds an MBA from Uppsala University in international business and has completed a number of leadership courses. She is trained in crisis management at the Swedish National Defence College. Ms. Kraft has extensive international experience in, among other things, product development, marketing, quality management and is a Board member of Munters AB and ÅF AB. Kraft has previously been associated with Alfa-Laval AB, Siemens-Elema AB, AGA and ABB Fläkt in a number of posts. Her most recent position has been as Section head of Strategy and Markets at FOI, Swedish Defence Research Agency (Totalförsvarets Forskningsinstitut) 2004-2007 and before that as the Division Head and Deputy CEO of Siemens-Elema. Eva-Lotta Kraft is independent of the company, corporate management and the larger shareholders in the company. At present, Kraft does not hold any shares in the company.

Lars Olof Nilsson is 45 years old and lives in Nacka. Mr. Nilsson has a degree in economics (focus: business administration) from the University of Umeå. He has broad international experience in business development and financial issues. Mr. Nilsson is a board member of of listed companies IGE AB and BE Group AB and is today an advisor to Nordic Capital. He has previously been associated with Trelleborg AB in a number of positions. In his latest position as Senior Vice President, Trelleborg AB, he was responsible for Trelleborgkoncernens business development (2002-2006) and also Group Treasurer (1992-2005) and member of Group management. Lars Olof Nilsson is independent of the company, corporate management and larger shareholders in the company. Nilsson does not presently hold any shares in the company.

Chairman Peter Enå comments: With solid experience and knowledge, Eva-Lotta Kraft and Lars Olof Nilsson will make valuable additions to the Board and the continued expansion to Morphic Technologies AB.

Today, the Board consists of Jan Alvén, Börje Vernet, Kurt Dahlberg, Peter Enå, Anette Myrheim and Kjell Östergren.

DISCLAIMER: This document is a translation from the Swedish original. No guarantees are made that the translation is free from errors.