Bavarian Nordic

Legal Proceedings Report • Jan 26, 2010

Company Announcement

26 January 2010

Not for release, publication or distribution, directly or indirectly in or into Australia, Canada, Japan or the United States

This announcement does not constitute or form part of an offer to sell or the solicitation of an offer to buy the securities of Bavarian Nordic A/S (the "Securities") in Australia, Canada, Japan or the United States or in any other jurisdiction. The Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The issuer of the Securities has not registered, and does not intend to register, any portion of t and the United Kingdom, and does not intend to conduct a public offering of the Securities in the United States or in any jurisdiction outside Denmark and the United Kingdom. Copies of may not be distributed or sent into Australia, Canada, Japan or the United States. ties the Offering in the United States or in any jurisdiction outside Denmark this announcement are not being made and he

PROSTVAC™ paper published in Journal of Clinical Oncology

Kvistgård, Denmark, January 26 PROSTVAC™ paper has been published official journal of ASCO (American Society of Clinical Oncology) 6, 2010 – Bavarian Nordic A/S (OMX: BAVA) announced today that published in the peer-reviewed Journal of Clinical Oncology Oncology). a Oncology (JCO), the

As announced in the prospectus dated submitted its article to the journal in 2009 with the expected publication in the first half of 2010. 8 January 2010 regarding the ongoing rights issue, Bavarian Nordic

The paper titled: "Overall Survival Analysis of a Phase II Randomized Controlled Trial Based PSA-Targeted Immunotherapy in Metastatic Castration published ahead of print on JCO's website: http://jco.ascopubs.org/cgi/content/abstract/JCO.2009.25.0597v1 Overall Targeted Castration-Resistant Prostate Cancer Trial of a Poxviral-Resistant Cancer" has been

The paper is based on the previously reported Phase II study, showing a survival (8.5 months) in men with advanced prostate cancer. gi/content/abstract/JCO.2009.25.0597v1significant longer median

Anders Hedegaard, President & CEO of Bavarian Nordic data has been accepted for publication in peer-reviewed oncology journals. This is indeed a major recognition of the scientific potential of the vaccine and highly supports the further development and our ongoing preparations for the Phase III trials with PROSTVAC™." said: "We are delighted that our Journal of Clinical Oncology, one of the most prominent reviewed PROSTVAC™ ,

Contact

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

About PROSTVAC™

PROSTVAC™ is a therapeutic vaccine moving into late stage to extend the lives of people with advanced prostate cancer. Administered subcutaneously, it induces a specific, targeted immune response that attacks prostate cancer cells. Conventional chemotherapy currently used to treat prostate cancer has limited survival rates and is often associated with numerous side effects. In contrast, PROSTVAC™ has the potential to extend survival with improved quality of life. PROSTVAC™ is being developed in collaboration with the Nat Research and Development Agreement with Bavarian Nordic's U.S. ImmunoTherapeutics. clinical development that has the potential ed National Cancer Institute under a Cooperative U.S.-based subsidiary, BN ional based

In clinical trials to date PROSTVAC™ and related PSA containing poxviral vaccines have been investigated and optimised in more than 500 patients for 10 years.

Company Announcement no. Page 1 of 2 7 / 2010

Bavarian Nordic A/S Hejreskovvej 10A

DK-3490 Kvistgaard Denmark

3490 Kvistgaard Fax: +45 33 26 83 80

10A Tel: +45 33 26 83 83 www.bavarian-nordic.com

nordic.com CVR-no: 16 27 11 87

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.

About Bavarian Nordic

Bavarian Nordic A/S 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 pipeline is focused in the three areas; biodefence, cancer and infectious diseases, and includes seven development programmes. Two programmes are under preparation for Phase III: IMVAMUNE®, a third-generation smallpox vaccine is being developed under a contract with the US government, and PROSTVAC™, a therapeutic vaccine for advanced prostate cancer is being developed under a collaboration agreement with the National Cancer Institute.

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

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

Page 2 of 2 Company Announcement no. 7 / 2010

Bavarian Nordic A/S Hejreskovvej 10A Tel: +45 33 26 83 83 www.bavarian-nordic.com CVR-no: 16 27 11 87 DK-3490 Kvistgaard Fax: +45 33 26 83 80 Denmark