Bavarian Nordic plans a DKK 650 Million Rights Issue

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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.

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Kvistgård, Denmark, April 4, 2011 - Bavarian Nordic A/S (OMX: BAVA) has today convened the Annual General Meeting to be held on April 26, 2011. In that respect, the board has proposed to extend the current authorisation to increase the Company's share capital with the purpose of carrying out a rights issue with pre-emptive rights for existing shareholders.

As previously announced together with the publication of the 2010 Annual Report, the Company has reviewed various options to fund the continued development of PROSTVAC®, in particular opportunities to pursue an independent development in parallel with continuing the partnership discussions. Accordingly, the Company has concluded a rights issue to be the most suitable approach.

The rights issue is expected to be completed in the first half of 2011, subject to market conditions. The Company expects proceeds from the rights issue of approximately DKK 650 million, which in combination with positive cash flow from existing contracts for the Company's smallpox vaccine, IMVAMUNE®, would, the Company believes, enable the Company to pursue the independent development of PROSTVAC®, including the completion of the pivotal Phase 3 trial.

The total costs for completing the pivotal Phase 3 trial with PROSTVAC® are estimated to be approximately DKK 850 million, including internal costs, production of clinical trial material, contract research costs and validation of the commercial manufacturing process.

In parallel with the initiation of Phase 3, the Company will continue its discussions with potential partners among global pharmaceutical companies with the aim of entering into a collaboration agreement on co-development and commercialization of PROSTVAC®.

Bavarian Nordic has engaged Carnegie, Jefferies International Limited and Nordea Markets (Division of Nordea Bank Danmark A/S) as Joint Global Coordinators in the Rights Issue.