Bavarian Nordic Has Signed Contract With an EU Country for the Delivery of IMVAMUNE(R)

KVISTGAARD, Denmark - Bavarian Nordic A/S (OMX: BAVA) announced today that it has signed a contract with the military of an undisclosed EU country for the delivery of a small order for IMVAMUNE(R). The vaccines will be delivered in 2009. The size and value of the contract is undisclosed.

This marks the first time Bavarian Nordic enters a contract with an EU country for the delivery of IMVAMUNE(R), and it demonstrates that there exists a real demand inside of EU for new and safer smallpox vaccines for preparedness stockpiles.

This contract does not affect the company’s expectations for the 2009 full year results.

Anders Hedegaard, President & CEO of Bavarian Nordic said: “Entering the first contract with an EU country on IMVAMUNE(R) demonstrates the need for new and safer smallpox vaccines. We have a continued ongoing positive dialogue with governments in and outside the EU, and we expect that this will lead to several smaller contracts. When we expectedly receive the approval from the US authorities to initiate the delivery of IMVAMUNE(R) under the RFP-3 contract for 20 million doses, this will be an important message to other governments currently considering to stockpile IMVAMUNE(R).”

Forward-looking statements

This announcement includes “forward-looking statements” that involve risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements include statements concerning our plans, objectives, goals, future events, performance and/or other information that is not historical information. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstances after the date made, except as required by law.

About Bavarian Nordic

Bavarian Nordic A/S is a leading industrial biotechnology company developing and producing novel vaccines for the treatment and prevention of life-threatening diseases with a large unmet medical need. The company’s pipeline is focused in the three areas; biodefence, cancer and infectious diseases, and includes seven development programmes. Two programmes are ready for Phase III: IMVAMUNE(R), a third-generation smallpox vaccine is being developed under a contract with the US government, and PROSTVAC(TM), a therapeutic vaccine for advanced prostate cancer is being developed under a collaboration agreement with the National Cancer Institute.

Bavarian Nordic is listed on NASDAQ OMX Copenhagen under the symbol BAVA.

For more information please visit www.bavarian-nordic.com

Source: Bavarian Nordic A/S

Contact (media only): Anders Hedegaard, President & CEO, Bavarian Nordic, +45-23-20-30-64