Bavarian Nordic wins arbitration case against Helmholtz Zentrum MÃ¼nchen

20 april 2011 Not for release, publication or distribution in the United States, Canada, Australia or Japan This announcement does not constitute an offer to sell or the solicitation of an offer to buy the securities of Bavarian Nordic A/S (the "Securities") in 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 the Offering in the United States or in any jurisdiction outside Denmark and the United Kingdom, and does not intend to conduct a public offering of the Securities in the United States or in any other jurisdiction outside Denmark and the United Kingdom. Copies of this announcement are not being made and may not be distributed or sent into the United States, Canada, Australia or Japan. This announcement is only being distributed to, and is only directed at, persons in the United Kingdom that are qualified investors, as that term is defined in the Prospectus Directive, that are also (i) "investment professionals" falling within Article 19(5) of the Financial Service and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (ii) "high net worth entities"Â and other persons to whom it may lawfully be communicated, falling within the meaning of Article 49(2)(a) to (d) of the Order (all such persons being "relevant persons"). The securities of Bavarian Nordic A/S (the "Securities") are only available to relevant persons and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Securities will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its content. KvistgÃ¥rd, 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 MÃ¼nchen, Deutsches Forschungszentrum fÃ¼r Gesundheit und Umwelt GmbH (formerly also known as GSF). The tribunal found Helmholtz Zentrum MÃ¼nchen's claims of rights to royalties on Bavarian Nordic's MVA-BNÂ® based vaccines, including IMVAMUNEÂ®, to be baseless on all grounds. The decision clarifies that Helmholtz Zentrum MÃ¼nchen has not contributed in any way to the creation of the MVA-BNÂ® technology and the invention behind the MVA- BNÂ® patents. Consequently, the tribunal found that the MVA-BNÂ® technology has been created solely by Bavarian Nordic and Helmholtz Zentrum MÃ¼nchen could not justify any right to royalties on Bavarian Nordic's MVA-BNÂ® based vaccines, including IMVAMUNEÂ®. 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-BNÂ® patents. The outcome in this case underscores our unique position in the MVA field based on the MVA-BNÂ® 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(Â®), a therapeutic vaccine for advanced prostate cancer is being developed under a collaboration agreement with the National Cancer Institute, and IMVAMUNE(Â®), 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 PROSTVAC(Â®) 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. 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. 201109uk: http://hugin.info/100065/R/1507946/442855.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Bavarian Nordic A/S via Thomson Reuters ONE [HUG#1507946]