Bavarian Nordic

Share Issue/Capital Change • Dec 16, 2010

Bavarian Nordic awards warrants to certain employees

Bavarian Nordic awards warrants to certain employees

Kvistgård, Denmark, December 16, 2010 - The Board of Directors in Bavarian Nordic A/S has today decided to award warrants to certain, especially newly employed, employees in the Company and its subsidiaries. The Board decision is made in accordance with the shareholder authorisation for the Board of Directors adopted as Article 5b of the Articles of Association and the Company's guidelines regarding incentive programs. The award is made by the Board of Directors and exercise is limited by and governed by the Danish Act on Options for Employees (the Stock Option Act/aktieoptionsloven) regarding termination of employment prior to exercise of warrants.

A total of 45,000 warrants are awarded for subscription of up to 45,000 shares of a nominal value of DKK 10 at an exercise price of DKK 261 per share. The exercise price is established as the average share price ("closing price") for the Company's share in a period of 15 business days prior to this day added a 15 % premium. However, the exercise price must at least be equal to the Company's average exchange-listed price today. In the event that the average exchange-listed price on the Company's shares today exceeds DKK 261 the exercise price shall be increased accordingly and the Company will make a separate announcement hereof.

The warrants can be exercised wholly or partly in a period of 14 days commencing from the day of publication of the Company's Annual Report for 2013, from the day of publication of the Company's Half Year Report for 2014, from the day of publication of the Company's Annual Report for 2014 and/or in a period of 14 days commencing from the day of publication of the Company's Half Year Report for 2015.

The value of each warrant equals DKK 78 and is calculated on the Black-Scholes model with a risk-free interest rate of 1.63 per cent and on the historical volatility of the shares. The calculation is based on a market value of the share of DKK 238 per share.

The award of warrants will incur consequential amendments to the Articles of Association.

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®, 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.

HUG#1473106

Attachments:

• 201041uk

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