We report on the in-plane magnetic anisotropy and temperature dependence of the exchange bias in epitaxial CoO(111)/Fe(110) bilayers. The Fe thickness induced in-plane spin reorientation transition and the existence of the exchange bias below the blocking temperature ≈ 27 K is documented in CoO(111)/Fe(110) system. For dF e = 80 Å, we find that the hysteresis loop shift-field, HEB, reaches the value ≈ 250 Oe at 184 K. A true interplay between antiferromagnetic CoO and ferromagnetic Fe layers is described.