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Bavarian Nordic Update - 2007 Annual Results, IMVAMUNE(R) Delivery Contract, Strategy Process

after the balance sheet date

Bavarian Nordic has signed contract with Asian country for the delivery of IMVAMUNE(R)

Bavarian Nordic has signed a three-year contract with the government of an Asian country for the delivery of a small order of IMVAMUNE(R) for the country's biodefense program.

This contract, which is considered as an initial order, is Bavarian Nordic's first outside USA for delivery of IMVAMUNE(R). The extent and value of the contract are undisclosed.

Bavarian Nordic will manufacture and deliver IMVAMUNE(R) smallpox vaccines for this country before initiating the delivery of the 20 million doses of IMVAMUNE(R) for the U.S. government.

Strategy update

Since the autumn of 2007, when Anders Hedegaard joined Bavarian Nordic as the new President and CEO, the Company has undergone a strategy process which was completed in spring 2008. Conclusions from the process and derived initiatives will be implemented continuously. In the meantime, the Company is focusing strongly on streamlining its organization and on value-generating elements that can cement the position of Bavarian Nordic as an innovative, globally leading supplier of vaccines. In the short term, this means that the key focus will be on:
- Fulfilling the RFP-3 contract

- Changed prioritizing and optimization of pipeline

- Building up market demand for IMVAMUNE(R)

Fulfilling the RFP-3 contract With a continuing strong focus on project management, a number of important milestones forward are expected in the development of IMVAMUNE(R) over the next 12-24 months:

- Completion of Phase II studies in HIV and people diagnosed with Atopic Dermatitis (2008)

- Commencement of Phase III studies (2009)

- Start-up of inventory production of vaccine (2008)

- Start-up of actual delivery of vaccine for the US strategic national stockpile (2009)

To begin delivering IMVAMUNE(R) to the United States, Bavarian

SOURCE Bavarian Nordic A/S
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