Bavarian Nordic Appeals Delaware Order Dismissing Claims Related To Acambis' Misuse of Viral Sample

On May 16, 2007, the U.S. Federal District Court of the District of Delaware    
dismissed Bavarian Nordic's pending claims of conversion, unfair competition and
unfair trade acts on summary judgment. Only days before the start of a jury     
trial, the District Court ruled that there were no facts in dispute and that no 
existing case law supports a finding in favour of Bavarian Nordic. Bavarian     
Nordic has alleged that Prof. Anton Mayr, the pioneering creator of Modified    
Vaccinia Ankara (MVA) used to make Bavarian Nordic's smallpox vaccine IMVAMUNE®,
had supplied a specific sample to a scientist for research purposes only.       
Acambis received reproduced MVA virus material from this specific sample which  
it used to produce its smallpox vaccine MVA3000. The order holds that subsequent
passages turns reproduced biological material into different personal property  
and that such material therefore cannot be converted. Virus material is produced
by reproduction and, thus, the District Court's ruling, if upheld, would        
eliminate the value of man made biological material.                            

The order issued yesterday has no impact on the patent case pending at the U.S. 
International Trade Commission (ITC). Earlier this year, the ITC Commission     
reversed the Administrative Law Judge's Initial Determination in a case in which
Bavarian Nordic's patents on MVA were found to be infringed but invalid. The ITC
Commission remanded the entire case on grounds that the ALJ had made clear      
errors of law and fact. This patent case awaits an assignment of a new trial    
date.                                                                           

The order issued yesterday has no significance on the final discussions with the
US Department of Health and Human Services (HHS) on the sole-award contract for 
an MVA-based smallpox vaccine.                                                  

Commenting on the Delaware order, Peter Wulff, President and CEO of Bavarian    
Nordic, said: “We are confident that this decision will be reversed on appeal.  
The dismissal of the conversion claim is untenable. The order basically holds   
that anyone can use a live biological material as the starting material, however
obtained, and avoid liability for conversion by simply reproduce the material.  
In effect, a competitor could obtain a live virus sold in the market for use in 
patients, reproduce the virus and sell the millions of doses obtainable from it 
as his own. Such law would jeopardize the free research as well as impeding R&D 
investments in the field of biological materials with life saving potentials for
patients.”                                                                      


Kvistgård, 16 May 2007                                                          
Asger Aamund                                                                    
Chairman                                                                        

Contacts:	
Li Westerlund, Director Intellectual Property Rights                  
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 inno­vative 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 vac­cine vectors for the development of vaccines    
against various infectious diseases such as smallpox, HIV/AIDS, as well as      
against breast and prostate cancer. For more information please visit           
www.bavarian-nordic.com                                                         
“Safe Harbour" Statement Under the Private Securities Litigation Reform Act of  
1995:                                                                           
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