Correction: Bavarian Nordic Receives USD 50 Million Advance Payment from the U.S. Government for Fulfilling Contract Milestones

Correction to announcement issued earlier today. A sentence was
missing in the first paragraph and is now included. This does not
affect the legally-binding Danish version already issued.

Bavarian Nordic has received permission from the U.S. authorities to
invoice an advance payment of USD 50 million as allowed under the
RFP-3 contract to manufacture and deliver 20 million doses of the
company's, IMVAMUNE® smallpox vaccine. The permission has been
granted because the company has fulfilled a number of significant
milestones in the contract. The payment is dependent on Bavarian
Nordic's continued fulfilment of the conditions of the contract.

The income will be recognised as revenue in the financial statements
as the vaccines are delivered. Delivery will start once an Emergency
Use Authorization for IMVAMUNE® is granted.

As previously announced, in addition to the advance payment of USD 50
million, the company expects to receive two additional milestone
payments each of USD 25 million in 2007 for fulfilling other
significant milestones.

The advance payment does not affect the previously announced guidance
for the company's 2007 result.

Anders Hedegaard, President & CEO of Bavarian Nordic, said:" We are
very satisfied that we have now already fulfilled several significant
milestones as agreed with the U.S. Department of Health and Human
Services. With the advance payment and the future milestone payments,
we have created a solid financial base for our further development. "




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