U.S. Government Notifies Bavarian Nordic of Intent to Acquire 20 Million Doses of IMVAMUNE® Smallpox Vaccine

While the principal terms of the agreement have been reached, the contract is
currently being finalized 
Following a competitive RFP process, Bavarian Nordic has received notification
from the U.S. Department of Health and Human Services (HHS) that it intends to
procure 20 million doses of the company's third-generation IMVAMUNE® smallpox
vaccine for the strategic national stockpile. Under the framework of the
contract Bavarian Nordic must register IMVAMUNE® for healthy people and extend
the license to people who are immune-compromised. 

While the principal terms of the agreement have been reached, the contract is
currently being finalized. It is expected to be the first HHS procurement
contract under the BioShield program since enactment of the Pandemic and
All-Hazards Preparedness Act in December 2006. 

Continuing a productive collaboration
The HHS notification continues the long-standing collaboration between Bavarian
Nordic and the US government on the development and production of MVA as a safe
smallpox vaccine. The first contract (RFP-1) was awarded to Bavarian Nordic in
2003; four years after the company initiated its MVA-based smallpox vaccine
program. As part of the second contract (RFP-2) awarded in 2004, Bavarian
Nordic supplied half a million doses of IMVAMUNE® smallpox vaccine to the U.S.
Government. Throughout the collaboration, Bavarian Nordic has continually
invested its own funds in the expedited program as well as established a
commercial manufacturing facility with a minimum capacity of producing 40
million doses of IMVAMUNE® per year. 

Peter Wulff, President & CEO of Bavarian Nordic, said, 
”We are pleased that HHS has notified us of their intent for Bavarian Nordic to
be the manufacturer of third-generation smallpox vaccines. We consider this
decision to be conclusive recognition of our substantial achievements in
developing the MVA platform technology which has many applications for future
vaccines.” 

Kvistgård, 16 April 2007

Asger Aamund
Chairman

Contacts:	Peter Wulff, President & CEO
	Telephone: +45 33 26 83 83

	Media: United Kingdom		Media: United States of America
	Mary Clark, Capital MS&L	Elizabeth Dempsey Becker, Bavarian Nordic Inc.
	Telephone: +44 207 307 5330	Telephone: +1 202 536-1576

About Bavarian Nordic A/S:
Bavarian Nordic (CSE: BAVA) is a leading international biopharmaceutical
company developing and producing inno¬vative vaccines to prevent and treat
infectious diseases and cancer. With operations in Denmark, Germany, the USA,
and Singapore, Bavarian Nordic employs over 200 people. Bavarian Nordic's
patented technology, MVA-BN®, is as been demonstrated in clinicial studies, one
of the world's safest, multivalent vac¬cine vectors for the development of
vaccines against various infectious diseases such as smallpox, HIV/AIDS, as
well as against breast and prostate cancer. Several MVA-BN®-based HIV and
smallpox vaccines are in clinical Phase I and Phase II trials. Bavarian Nordic
has ongoing development contracts with the US government to develop IMVAMUNE®
as a safe third-generation smallpox vaccine. Bavarian Nordic has supplied
several other governments with smallpox vaccines. 
For more information please visit www.bavarian-nordic.com

“Safe Harbour" Statement Under the Private Securities Litigation Reform Act of
1995: 
Except for the historical information contained herein, this release contains
"forward-looking state¬ments" within the meaning of the Private Securities
Reform Act of 1995. No "forward-looking state¬ment" can be guaranteed, and
actual results may differ materially from those projected. Bavarian Nor¬¬dic
undertakes no obligation to publicly update any "forward-looking statement",
whether as a re¬sult of new information, future events, or otherwise.
Additional information regarding risks and unce¬rtainties is set forth in the
current Annual Report, which we incorporate by reference. 

Stockwise Resumé
U.S. Government Notifies Bavarian Nordic of Intent to Acquire 20 Million Doses
of IMVAMUNE® Smallpox Vaccine 
Need for next generation smallpox vaccine 
The only means to prevent smallpox infection is through vaccination. The
vaccinia virus found in traditional smallpox vaccines used and/or stockpiled
today, are live, replicating viruses which can pose serious side-effects and
lead to complications for persons with weakened or impaired immune systems.
Therefore, traditional smallpox vaccines are contra-indicated for those that
are immune-compromised such as pregnant women, young children, the elderly,
people with active or a history of atopic dermatitis, HIV-infection, some
cancer patients, and organ transplant recipients. 

In contrast, Bavarian Nordic's MVA-based virus (patented as MVA-BN®), a highly
weakened form of the vaccinia virus, does not replicate in human cells. Data
from clinical trials in human subjects suggest that this MVA-based smallpox
vaccine may be safe and immunogenic. 

Bavarian Nordic's IMVAMUNE® Program
Results from Bavarian Nordic's clinical trials with IMVAMUNE® in more than
1,500 human subjects (healthy subjects, persons with atopic dermatitis and
HIV-infection) have shown the vaccine to be safe and well-tolerated. In
addition, company studies have demonstrated that IMVAMUNE® generates an immune
response against smallpox-like viruses in animals which is the only accepted
means of proving efficacy for U.S. Food and Drug Administration (FDA)
standards. 

Bavarian Nordic has continually invested its own funds in the expedited program
as well as established a commercial manufacturing facility with a minimum
capacity of producing 40 million doses of IMVAMUNE® per year. 

History of MVA-based smallpox vaccine 
An MVA-based smallpox vaccine given to more than 120,000 people in Germany in
the 1970s had an excellent safety record. However, when the World Health
Organization declared smallpox eradicated in 1980, further research on MVA as a
smallpox vaccine ended. In 1994, Bavarian Nordic was founded to develop
vaccines using MVA as its platform technology and in 1999 began its MVA-based
smallpox vaccine program.