WASHINGTON, September 20 /PRNewswire/ --     Bavarian Nordic, the Danish-based biopharmaceutical company, announced it
will establish a new separate sales and marketing function to strengthen the
company's commercial activities and increase marketing efforts on its
third-generation smallpox vaccine, IMVAMUNE(R) as well as future HIV and
cancer vaccines. The new commercial affairs function will be headed up by an
Executive Vice President who will join the Corporate Management group and
refer to Anders Hedegaard, CEO. An appointment is expected before year-end.

Bavarian Nordic sees great potential in the market for IMVAMUNE smallpox
vaccine, as evidenced by the recent contract award(i) by the Department of
Health and Human Services (HHS) to purchase 20 million doses of the company's
vaccine. Bavarian Nordic is currently in negotiations with a number of other
countries on the manufacture and delivery of IMVAMUNE, the timing and value
of potential contracts is not yet known.

Status on IMVAMUNE smallpox vaccine contract

Under the 5-year contract with HHS, Bavarian Nordic will receive advanced
and milestone payments, amounting to USD 150 million based on meeting
pre-determined milestones. In 2007, the company expects to receive advanced
payments of USD 50 million and two milestone payments (USD 25 million each)
for fulfilling milestones within the following areas:

- Build-up of security systems

- Establishment of various procedures and training

- Validation of equipment and processes

- Reporting on the Phase II study in preparation for design of
Phase III studies

Vaccine Pipeline Update

    Program             Phase         Next milestone
    IMVAMUNE(R)         II            Start of Phase III (2008)
    (smallpox)
    HIV nef             II            Immunogenicity data (Q3, 2007)
    HIV polytope        I/II          Immunogenicity data (Q4, 2007)
    HIV multiantigen    Preclinical   Start of Phase I (2008)
    Breast cancer       I/II          Safety and immunogenicity data (Q1, 
                                      2008)
    Prostate cancer     Preclinical   Start of Phase I (2007/2008)
    Measles             Preclinical   Start of Phase I (2007)
    RSV                 Preclinical   Start of Phase I (2008)



Guidance maintained for 2007 results

Based on the planned activities and milestone payments, the company
expects revenue of approximately DKK 380 million and a loss before tax of DKK
50 million in 2007. At year-end the company's net liquidity is expected to be
approximately DKK 900 million.

For more background on these highlights, see the full stock exchange
release: http://www.bavarian-nordic.com/pdf/announcements/29-07_uk.pdf

About Bavarian Nordic

Bavarian Nordic, headquartered in Denmark, is a leading international
biopharmaceutical company developing and producing innovative vaccines to
prevent and treat infectious diseases and cancer.

In the U.S., Bavarian Nordic operates subsidiary companies, BN
ImmunoTherapeutics, in Mountain View, California developing vaccines against
cancers, and Bavarian Nordic Inc. in Washington, D.C. focused on business
development, marketing, and government relations for the Bavarian Nordic
Group. For more information on Bavarian Nordic visit:
http://www.bavarian-nordic.com

"Safe Harbour" Statement under the Private Securities
Litigation Reform Act of 1995": Except for the historical information
contained herein, this release contains "forward-looking statements" within
the meaning of the Private Securities Reform Act of 1995. No "forward-looking
statement" can be guaranteed, and actual results may differ materially from
those projected. Bavarian Nordic undertakes no obligation to publicly update
any "forward-looking statement", whether as a result of new information,
future events, or otherwise. Additional information regarding risks and
uncertainties is set forth in the current Annual Report and in Bavarian
Nordic's periodic reports, if any, which we incorporate by reference.

(i) This project has been funded in whole with Federal funds from the
Office of the Assistant Secretary for Preparedness and Response, Biomedical
Advanced Research and Development Authority, under Contract No.
HHSO100200700034C.