U.S. government extends RFP-2 contract with Bavarian Nordic



The U.S. government has extended the RFP-2 contract that was awarded
to Bavarian Nordic in 2004. Within the scope of the extension,
Bavarian Nordic will initiate a larger Phase II study with IMVAMUNE®
in people diagnosed with atopic dermatitis. The contract extension
has a value of USD 15 million.

The additional clinical studies will be performed within the contract
period, which has been extended until 2010. However the main part of
the revenue is expected in the end of 2008 and beginning of 2009.

Anders Hedegaard, President & CEO of Bavarian Nordic, said:"We are
very pleased that the U.S. government has decided to extend the
ongoing RFP-2 contract to include clinical studies in people with
atopic dermatitis, one of the potentially largest risk groups
associated with traditional smallpox vaccines. This is an important
step in our efforts to develop a safe third-generation smallpox
vaccine for the entire population and it builds further on our
long-term partnership with the U.S. government."

Asger Aamund
Chairman

Contacts:

Anders Hedegaard, President & CEO
Telephone: +45 33 26 83 83

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

30-07_uk