Bavarian Nordic Receives USD 25 Million Milestone Payment from the U.S. Government for Fulfilling Contract Milestones

Bavarian Nordic has received permission from the U.S. authorities to
invoice a milestone payment of USD 25 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 income will be recognised as revenue in the financial statements
for 2007.

As announced on 8 October 2007, Bavarian Nordic has already received
an advance payment of USD 50 million. In addition to this and the
current milestone payment, the company expects to receive an
additional milestone payment of USD 25 million in 2007.

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 fulfilled another significant milestone
as agreed with the U.S. Department of Health and Human Services. With
the already received and future 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 States of America
Elizabeth Dempsey Becker, Bavarian Nordic Inc.
Telephone: +1 202 536-1576