Bavarian Nordic wins arbitration case against Helmholtz Zentrum München

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Kvistgård, Denmark, April 20, 2011 - Bavarian Nordic A/S (OMX: BAVA) announced today that the ICC International Court of Arbitration rendered its decision in the arbitration that has been pending against Helmholtz Zentrum München, Deutsches Forschungszentrum für Gesundheit und Umwelt GmbH (formerly also known as GSF). The tribunal found Helmholtz Zentrum München's claims of rights to royalties on Bavarian Nordic's MVA-BN® based vaccines, including IMVAMUNE®, to be baseless on all grounds. The decision clarifies that Helmholtz Zentrum München has not contributed in any way to the creation of the MVA-BN® technology and the invention behind the MVA- BN® patents. Consequently, the tribunal found that the MVA-BN® technology has been created solely by Bavarian Nordic and Helmholtz Zentrum München could not justify any right to royalties on Bavarian Nordic's MVA-BN® based vaccines, including IMVAMUNE®. The tribunal further ordered that Bavarian Nordic's attorney fees be reimbursed. The arbitration request has been pending since August 2009 and was based on two old agreements with Bavarian Nordic from 1994 and 1997 regarding a collaboration on certain recombinant vaccines, which was formally terminated in 2001. Anders Hedegaard, President & CEO of Bavarian Nordic said: "We have again successfully defended our right to the MVA-BN® patents. The outcome in this case underscores our unique position in the MVA field based on the MVA-BN® patents and we are very pleased to leave this conflict behind us." 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 PROSTVAC(®) is a registered trademark in the U.S. 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. 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