Novavax Announces Early Retirement of $17 Million of Convertible Debt

Transaction removes significant financial obligation and improves balance
sheet

ROCKVILLE, Md., April 29 /PRNewswire-FirstCall/ -- Novavax, Inc. (Nasdaq:
NVAX), a leader in the development of novel vaccines, today announced that it
has reached an early payoff agreement with holders of $17 million of the total
$22 million in outstanding convertible notes. These convertible notes carried
a coupon rate of 4.75% payable semi-annually and had a maturity date of July
15, 2009. Under the terms of the early retirement, the Company will pay 70%
of the principal plus accrued and unpaid interest in cash and will issue
shares of its common stock for the remaining 30% of the principal by dividing
that principal amount by $2.50 for a total payment of approximately $12
million in cash and 2,040,000 shares of common stock. The remaining $5
million in outstanding convertible notes will be due on July 15, 2009 and can
be paid in cash at maturity at the Company's option.

"The transaction announced today to retire $17 million of our outstanding
convertible notes removes a significant financial overhang from the Company.
We have taken the opportunity to repay a larger portion of this debt in cash
than was initially anticipated based on our current resources and market
conditions. Removal of this indebtedness will allow the Company to continue
its primary focus on the core mission of developing important new vaccines
that can make a significant impact on human health," stated Rahul Singhvi,
President and Chief Executive Officer of Novavax, Inc.

About Novavax
Novavax, Inc. is a clinical stage biotechnology company, creating novel
vaccines to address a broad range of infectious diseases worldwide using
advanced proprietary virus-like particle (VLP) technology. The Company
produces these VLP based, potent, recombinant vaccines utilizing new, and
efficient manufacturing approaches. Additional information about Novavax is
available at www.novavax.com and in the Company's various filings with the
Securities and Exchange Commission.

Forward Looking Statement
Statements herein relating to future development results and performance,
conditions or strategies and other matters, including expectations regarding
product and clinical developments, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act. Novavax cautions that
these forward-looking statements are subject to numerous assumptions, risks
and uncertainties, which change over time. Factors that may cause actual
results to differ materially from the results discussed in the forward-looking
statements or historical experience include risks relating to the early stage
of Novavax's product candidates under development; current results may not be
predictive of future pandemic results, results of our seasonal influenza
vaccine or any other vaccine that we may develop; further testing is required
before regulatory approval can be applied for and the FDA may not approve a
vaccine even if further trial results are similar to those disclosed
previously by the company; uncertainties relating to clinical trials;
dependence on the efforts of third parties; competition for clinical
resources and patient enrollment from drug candidates in development by other
companies with greater resources and visibility; and risks that we may lack
the financial resources and access to capital to fund our operations including
further clinical trials. Further information on the factors and risks that
could affect Novavax's business, financial conditions and results of
operations, is contained in Novavax's filings with the U.S. Securities and
Exchange Commission, which are available at http://www.sec.gov. These
forward-looking statements speak only as of the date of this press release,
and Novavax assumes no duty to update forward-looking statements.

SOURCE Novavax, Inc.

Tricia J. Richardson of Novavax, Inc., +1-240-268-2031