• Emergent enters agreement to acquire manufacturing facility in Maryland
• Emergent in negotiations to purchase laboratory facility in Gaithersburg
• Emergent enters agreement to sell both of its Frederick facilities
• Transactions should result in reduction of Company’s total debt and annual interest and operating expenses

Emergent BioSolutions Inc. (NYSE:EBS) announced today that it has entered into multiple real estate transactions that will expand the Company’s manufacturing and development infrastructure. These transactions should broaden the Company’s manufacturing options and increase the flexibility with which it uses its manufacturing assets, facilitate the continued growth of its product development programs, and reduce the Company’s overall debt and annual interest and operating expenses.

Specifically, the Company is selling its Frederick facilities, which consists of two 145,000 sq. ft. unimproved buildings acquired in 2004 and 2006. In turn, the Company is in the process of acquiring a new Maryland manufacturing facility and a Gaithersburg laboratory facility.

With respect to manufacturing, the Company plans to use the proceeds from the sale of one of its unimproved facilities in Frederick to acquire another facility in Maryland that is suitable for cGMP manufacture within a time frame and at a cost that should be significantly below what would be required to build out the Frederick site. The Maryland facility includes several suites suitable for cGMP manufacturing of multiple products as well as space for process development and administrative functions. Strategically, the new Maryland manufacturing facility broadens Emergent’s options in that it enables the Company to offer to the U.S. government another site wherein rPA manufacturing could be accomplished, while freeing up Building 55 in Lansing for BioThrax^® scale up. In addition, this new facility creates greater manufacturing flexibility for the Company and positions it well to build value from its manufacturing assets in a more timely fashion and at a lower cost.

With respect to product development, the Company plans to use the proceeds from the sale of the other unimproved facility in Frederick to acquire a laboratory facility in Gaithersburg suitable for the Company’s growing product development programs.