Bavarian Nordic receives USD 25 million milestone payment after submission of important IMVAMUNE® data to the U.S. Health Authorities

Bavarian Nordic has invoiced the U.S. authorities for another
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. This milestone payment was triggered by
the recent submission of a clinical safety report from a large Phase
II study with IMVAMUNE® in HIV infected subjects, which is part of
the regulatory package that will be used to potentially support the
use of IMVAMUNE® in a declared emergency. With this, Bavarian Nordic
is an important step closer to fulfilling the conditions for
initiating delivery of IMVAMUNE® in 2009.

The income will be recognised as revenue in the financial statements
for 2008.

With this payment, Bavarian Nordic has so far invoiced a total of USD
125 million in advance- and milestone payments under the RFP-3
contract, of which USD 50 million has not yet been recognised in the
income statement.

This announcement does not change Bavarian Nordic's previously
announced financial guidance for 2008.

Anders Hedegaard, President & CEO of Bavarian Nordic, said: "Since
the award of the RFP-3 we have successfully met all agreed objectives
in the contract with the U.S. Department of Health and Human Services
and we find this very satisfactory. The submission of these clinical
data concludes the data package that may support the use of IMVAMUNE®
in a declared emergency and marks an important event for the company
this year. This submission is part of the company's plan to support
the delivery of IMVAMUNE® which is planned to start during 2009".


Asger Aamund
Chairman



Contact: Anders Hedegaard, President & CEO | +45 23 20 30 64