Bavarian Nordic A/S (OMX: BAVA) announced today that it has signed a contract with the military of an undisclosed EU country for the delivery of a small order for IMVAMUNE(R). The vaccines will be delivered in 2009. The size and value of the contract is undisclosed. This marks the first time Bavarian Nordic enters a contract with an EU country for the delivery of IMVAMUNE(R), and it demonstrates that there exists a real demand inside of EU for new and safer smallpox vaccines for preparedness stockpiles. This contract does not affect the company's expectations for the 2009 full year results. Anders Hedegaard, President & CEO of Bavarian Nordic said: "Entering the first contract with an EU country on IMVAMUNE(R) demonstrates the need for new and safer smallpox vaccines. We have a continued ongoing positive dialogue with governments in and outside the EU, and we expect that this will lead to several smaller contracts. When we expectedly receive the approval from the US authorities to initiate the delivery of IMVAMUNE(R) under the RFP-3 contract for 20 million doses, this will be an important message to other governments currently considering to stockpile IMVAMUNE(R)."