US Government Exercises Next Part of Bavarian Nordic's Freeze-Dried IMVAMUNE® Contract

Kvistgård, Denmark, October 12, 2010 - Bavarian Nordic A/S (OMX: BAVA) announced
today that BARDA (Biomedical Advanced Research and Development Authority) has
exercised the next option under the contract for the development of a freeze-
dried version of Bavarian Nordic's IMVAMUNE® smallpox vaccine.

The option, which was triggered by the successful completion of certain
development milestones, provides next year's funding under the contract,
totalling approx. USD 14 million. The total prospective value of the five-year
contract, awarded in 2009, is USD 40 million.

The contract provides funds to validate the new freeze-dried manufacturing
process and the associated pre-clinical and clinical studies to support the
advanced development of a freeze-dried version of IMVAMUNE®. The freeze-dried
development activities are performed in parallel to the licensure activities of
the current liquid-frozen IMVAMUNE® formulation under the RFP-3 contract.

The above does not affect the company's expectations for the 2010 full year
results.

Bavarian Nordic's President & CEO, Anders Hedegaard commented: "We are pleased
with the US Government's continued support to advance the development of
IMVAMUNE® as a safer smallpox vaccine. Besides our ongoing contract for the
development and delivery of 20 million doses of IMVAMUNE® with an option of
additional 60 million doses in the current liquid-frozen formulation to the US
Strategic National Stockpile, we are committed to the development of a freeze-
dried version of IMVAMUNE®, which offers a number of new advantages, thus
representing an additional business opportunity which we intend to explore."



Asger Aamund
Chairman of the Board



Contact
Anders Hedegaard, President & CEO. Phone +45 23 20 30 64



About Bavarian Nordic
Bavarian Nordic is a leading industrial biotechnology company developing and
producing novel vaccines for the treatment and prevention of life-threatening
diseases with a large unmet medical need. The company's clinical pipeline
targets cancer and infectious diseases, and includes seven development
programmes. Two programmes under preparation for Phase III: PROSTVAC(TM), a
therapeutic vaccine for advanced prostate cancer is being developed under a
collaboration agreement with the National Cancer Institute, and IMVAMUNE®, a
third-generation smallpox vaccine is being developed under a contract with the
US government.

Bavarian Nordic is listed on NASDAQ OMX Copenhagen under the symbol BAVA.

For more information please visit www.bavarian-nordic.com

Forward-looking statements
This announcement includes "forward-looking statements" that involve risks,
uncertainties and other factors, many of which are outside of our control that
could cause actual results to differ materially from the results discussed in
the forward-looking statements. Forward-looking statements include statements
concerning our plans, objectives, goals, future events, performance and/or other
information that is not historical information. We undertake no obligation to
publicly update or revise forward-looking statements to reflect subsequent
events or circumstances after the date made, except as required by law.



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