Bavarian Nordic Appeals Austrian Court Ruling on Non-Infringement



On Friday 22 June the  Commercial Court in Vienna, Austria  dismissed
the pending case  based on  a finding that  Acambis' MVA3000  product
does not infringe Bavarian Nordic's Austrian MVA patent. The decision
is based on inaccuracies in  the interpretation of the patent  claims
to only cover the virus material which is physically deposited at the
European Collection of  Cell Cultures  under the  Budapest Treaty  in
connection with  the patent.  The  decision will  have no  impact  on
Bavarian Nordic's business.

Bavarian Nordic  will appeal  this decision  in order  to defend  its
Austrian  intellectual  property  rights  position.  The  company  is
confident that  the  decision will  be  reversed on  appeal,  as  the
Court's finding contradicts the European Patent Convention as well as
the Biotech  Directive on  the legal  protection of  biotechnological
inventions, which govern also Austrian  patent law. In the  meantime,
Bavarian Nordic prosecutes different claims in a divisional  European
patent application to safeguard its European patent position.

The Austrian Court's ruling has no impact on the patent case  pending
at the U.S. International Trade Commission.

Commenting on the Austrian decision,  Peter Wulff, President and  CEO
of Bavarian Nordic, said:"The decision  basically holds  that a  patent relying  on  deposited
material under the  Budapest Treaty,  which is  normal practice  with
respect to biological inventions,  would only receive protection  for
the physically deposited material itself. This would in effect render
intellectual property protection  into personal property  protection.
The decision  is  untenable because  it  would also  in  effect  only
protect  the  exact  biological   material  made  available  at   the
depository by the Patentee himself."



Kvistgård, 25 June 2007


Asger Aamund
Chairman

Contacts:

Li Westerlund, Director Intellectual Property Rights
Telephone: +45 33 26 83 96

Media: United Kingdom
Mary Clark, Capital MS&L
Telephone: +44 207 307 5330

Media: United States of America
Elizabeth Dempsey Becker, Bavarian Nordic Inc.
Telephone: +1 202 536-1576

Attachments

25-07_uk