FIRM DELIVERS 3 MILLION DOSES OF ANTHRAX VACCINE TO HHS

Emergent BioSolutions has announced that it has successfully delivered more than 3 million doses of BioThrax, the only FDA-approved anthrax vaccine, to HHS for placement into the nation's strategic national stockpile. The delivery of these doses, made under a modified contract with HHS, represents fourth-quarter 2006 revenue of approximately $75 million.

Under the modified contract, the company is required to complete delivery of a total of 5 million doses of BioThrax (anthrax vaccine adsorbed)to HHS before May 31, 2007, for a fixed price of $120 million. Since the contract modification, the company has delivered approximately 4 million doses of BioThrax and expects to deliver the rest during the first quarter of 2007.

The company's initial deliveries to HHS were pursuant to a May 2005 supply agreement under which the company agreed to supply an initial 5 million doses of BioThrax for placement into the strategic national stockpile for a fixed price of $123 million.

The strategic national stockpile, which is administered by the Centers for Disease Control and Prevention, comprises large quantities of drugs and medical supplies for use in the event of a public health emergency.