Our mission is simple:

to protect life.

2006 Corporate Overview Dear Stockholders:

2006 was a record year for total revenues and • We completed the required deliveries of is endemic, and we initiated a Phase II clinical been designed for flexibility and will allow us represented our fifth consecutive year of BioThrax® ( Adsorbed) to the development program for a trial in adolescents to manufacture multiple vaccine products in profitable operations. It was also a record year U.S. Department of Health and Human Services and children, also in Vietnam. addition to BioThrax. in terms of our accomplishments in the areas (HHS) under our initial 5 million dose contract • We initiated a Phase II clinical trial for our of corporate development as well as product seven months ahead of schedule. Positioned For Growth hepatitis B therapeutic vaccine candidate in Our 2006 accomplishments position us well for development and manufacturing of immunobi- • We completed a contract modification with chronic carriers in the U.K., and we expanded future growth. and therapeutics remain otics in our two business segments — HHS for the delivery of an additional 5 million the clinical sites for this trial to accelerate a critically important component of global and commercial. These accomplishments doses of BioThrax, with over 4 million doses recruitment. public health. With our talent, our focus on were driven by our five core strategies for delivered by December 2006. growth, which are: • We completed a Phase I clinical trial for our product development and manufacturing, our • We signed a contract amendment with the group B streptococcus vaccine candidate balanced approach between vaccines and Pursue two attractive business segments. U.S. Department of Defense (DoD) for the that uses a single novel recombinant protein therapeutics across two attractive markets, Focus on development versus research. delivery of approximately 1 million additional and, building on the promising results of that and our measurable financial performance, we Fuad El-Hibri doses of BioThrax, with final delivery scheduled are well positioned to continue our progress Chairman and Chief Executive Officer Leverage manufacturing core competency. study, the National Institute of Allergy and by September 2007. Infectious Diseases (NIAID) agreed to conduct and growth. We believe there are significant Mitigate costs with non-dilutive relationships. • We positioned the sale of BioThrax to additional a follow-on Phase I clinical trial for our advanced opportunities in both markets, and we look Grow through acquisition. domestic and international customers, including vaccine candidate. forward to capturing them. first responders at the state and local levels, • We finalized a license and development In closing, I would like to thank all of our Corporate Developments and signed agreements with marketing agreement with Sanofi Pasteur for the continued employees around the world for their tireless We made significant progress on a number of representatives to develop regional international development of our meningitis B vaccine. effort and sustained commitment, and to our corporate initiatives, including: markets where we see sales opportunities. Board of Directors for their continued counsel • We continued to develop our two technology • We completed an initial public offering raising and guidance. I would also like to acknowledge • We received certification and designation platforms — spi-VECTM and MVA (modified approximately $58 million, and listed our the continued support of our key customers and of BioThrax as a “qualified anti-terrorism vaccinia Ankara) — as vectors for the common stock on the New York Stock Exchange. the contributions of our collaborators and technology” by the U.S. Department of development of potential new candidates vendors. Finally, thank you to our stockholders • We acquired ViVacs GmbH, a German-based Homeland Security, making BioThrax the against other life threatening diseases. company with a promising first vaccine to receive this recognition. for your confidence in and support of our company. technology platform. Manufacturing Operations Sincerely yours, Commercial Business Segment • We leveraged our assets by securing We completed the construction phase of our We further advanced our commercial product approximately $32 million in additional new large-scale manufacturing facility in development initiatives in the fight against debt financing. Lansing, Michigan. This facility is designed to global infectious diseases, including: manufacture up to 40 million doses of BioThrax Fuad El-Hibri Biodefense Business Segment • We completed a Phase I clinical trial for per year on a single line, and it is potentially Chairman and Chief Executive Officer We continued to lead the way in the expanding our single dose, drinkable typhoid vaccine expandable to up to 80 million doses with the biodefense market, including: candidate in adults in Vietnam, where typhoid introduction of a second line. This facility has April 2007

Selected 2006 Accomplishments Financial Highlights

• Completed an initial public offering raising approximately $58 million, and listed our common stock on the New York Stock Exchange. revenue Net income Earnings per share TOTAL assets stockholders’ equity (dollars in thousands) (dollars in thousands) (dollars) (dollars in thousands) (dollars in thousands) • Acquired ViVacs GmbH, a German-based biotechnology company, and gained access to a MVA technology platform. 138,472 152,732 22,793 0.99 238,255 • Completed a contract modification withHHS for the delivery of an additional 5 million doses of BioThrax, with over 4 million doses 130,688 delivered by December 2006. 0.77 15,784 • Signed a contract amendment with the DoD for the delivery of approximately 1 million additional doses of BioThrax, with final delivery 0.61 83,494 scheduled by September 2007. 11,472 100,332 59,737 55,769 • Initiated a Phase II clinical development program for our typhoid vaccine candidate in adolescents and children in Vietnam, and initiated 69,056 4,454 0.24 a Phase II clinical trial for our hepatitis B therapeutic vaccine candidate in chronic carriers in the U.K. 37,127 22,949 8,448 • Signed a clinical trial agreement with the NIAID under which the NIAID will conduct a follow-on Phase I clinical trial for our advanced group B streptococcus vaccine candidate. 03 04 05 06 03 04 05 06 03 04 05 06 03 04 05 06 03 04 05 06 • Finalized a license and development agreement with SanofiP asteur for the continued development of our meningitis B vaccine. • Completed the construction phase of our new large-scale manufacturing facility in Lansing, Michigan. Emergent BioSolutions Inc. is a company focused on the development, manufacture and commercialization of immunobiotics, consisting of vaccines and therapeutics that induce or assist the body’s immune system to prevent or treat disease.

Our accomplishments are measurable: we deliver results.

We are focused. We are balanced. We are profitable. We deliver results. Our strategy is to Our approach is to Our model is to reinvest Our approach has enabled us focus on product achieve balance in the our profits to generate to reliably manufacture and development, from markets that we serve long-term growth. deliver our biodefense product, proof-of-concept to and the products that significantly enhance our commercialization. we develop. portfolio of product candidates and steadily grow our financial performance.

We seek to avoid the time, We employ a balanced We have achieved five We take pride in what we have risk and cost of early stage approach to business. We consecutive years of accomplished over the past research by concentrating operate in the biodefense profitability as a result of nine years. We delivered instead on development. We and commercial business both growth in revenues 19 million doses of BioThrax acquire product candidates segments, both of which are and disciplined financial and helped protect over that are at the proof-of- attractive markets providing operations. Our fundamental 1.5 million military personnel. concept stage and take opportunity for growth. We approach to managing our We were first to supply a them from the lab into the maintain a product portfolio business includes operating vaccine into the strategic real world. comprised of both vaccines within our means and national stockpile under and therapeutics. We balancing growth with Project BioShield. We have use multiple established financial responsibility. acquired three product technologies to develop development companies and manufacture our and established and further product candidates. developed a portfolio of promising product candidates that address global public health needs. The future is ours to create. Why not create one free of disease?

 Emergent BioSolutions Inc.  Driving corporate performance through five key strategies for growth. Frederick, MD Our goal is to improve the health and protect the lives of people around the globe by becoming Reading, U.K. Munich, germany a worldwide leader in developing, manufacturing and commercializing immunobiotics. Core to Gaithersburg, MD Rockville, MD achieving this goal are our five key strategies for growth. Headquarters

Operate in two attractive Mitigate costs with business segments. non-dilutive relationships. We operate in two business segments — We continuously pursue grants, clinical biodefense and commercial — both of trial support and other non-dilutive which provide attractive opportunities for arrangements with governmental and growth. We seek to maintain a balanced non-governmental agencies to advance product portfolio consisting of vaccines the development of both our biodefense Lansing, MI and therapeutics to diversify product and commercial product candidates. development and commercialization risk. Grow through acquisition. We use multiple established technologies We seek to opportunistically obtain to develop and manufacture our product products and product candidates through Singapore candidates, which further reduces our risk. acquisitions and licensing arrangements Focus on development, with third parties. We believe that we not research. have secured — and will be able to We focus our efforts on our core capabilities continue to secure — rights to a diverse of immunobiotic product development product pipeline focused on immunobiot- and manufacturing. This approach enables ics for use against biological agents that us to avoid the expense and time entailed are potential weapons of bioterrorism or Creating a global footprint. in early stage research activities while biowarfare or that address significant reducing product development and unmet or undeserved public health Because our products address worldwide needs, we are expanding our commercialization risk. needs. We also believe that this approach presence around the globe. That includes manufacturing facilities in the may enable us to accelerate product Leverage core competency development timelines. United States, product development operations in the United States and in manufacturing. Europe, and marketing and sales offices in the United States, Singapore We are constructing a new 50,000 square-foot manufacturing facility on our and Germany. We also work with third-party marketing representatives in Lansing, Michigan campus to augment the Middle East, Turkey, India, Australia and several Scandinavian countries. our existing manufacturing capabilities. We are constructing our new facility as a large-scale commercial manufacturing plant that we can use to produce multiple vaccine products.

 Emergent BioSolutions Inc.  Since 1998, we have supplied a total of 19 million doses of BioThrax® () to the U.S. Department of Defense for active immunization of military personnel and to the U.S. Department of Health and Human Services for Leading the way in the expanding biodefense market. placement into the nation’s strategic national stockpile.

Our product portfolio is focused on countering biological agents that are potential weapons of bioterrorism and biowarfare. The biodefense market for immunobiotics We are also evaluating several potential has grown dramatically as a result of product candidates in connection with the increased awareness of the threat of the development of a next generation global terror activity in the wake of the anthrax vaccine featuring attributes such September 11, 2001 terrorist attacks as use with antibiotics as a post-exposure and the October 2001 anthrax letter Biodefense Products treatment for anthrax infection, an extended attacks. At Emergent BioSolutions, we shelf life, new routes of administration, a Preclinical Phase 1 Phase 2 Phase 3 Approved take seriously the role we play to help combat bioterrorism. reduced number of required doses and stability at room temperature. Our biodefense product portfolio focuses In addition, our biodefense product BioThrax®(Anthrax Vaccine Adsorbed) on two category A biological agents, which are the class of biological agents that the portfolio includes our anthrax immune Centers for Disease Control and Prevention globulin (AIG), which we are developing has identified as the greatest possible as a therapeutic treatment for patients threat to public health. with symptoms of anthrax disease. We We market and sell BioThrax to the DoD received a development grant from NIAID Next Generation Anthrax Vaccine and HHS with a small, targeted marketing of up to $3.7 million to support pivotal and sales group, and since 1998, we have animal studies and assay development delivered 19 million doses of BioThrax related to our AIG product candidate. We under our contracts with the DoD and HHS. also entered into an exclusive agreement with Talecris to use its FDA-licensed In our effort to expand the domestic manufacturing process to produce our AIG Anthrax Immune Globulin customer base for BioThrax, we are approaching first responders, which include product candidate, and they have already fire, police and emergency medical manufactured our first consistency lot. personnel, at the state and local levels. More recently, we filed an Investigational New Drug Application (IND) with the Internationally, we have opened offices in United States Food and Drug Administration Recombinant Botulinum Vaccine Munich and Singapore, hired personnel to develop international market opportu- (FDA) to conduct a Phase I clinical trial nities and signed agreements with of our AIG product candidate. marketing representatives to develop regional markets.

Botulinum Immune Globulin

Helping the helpers. Our biodefense product portfolio focuses on two category A biological agents, the class identified by the Centers for Disease Control and Prevention as having the greatest potential for adversely impacting public health.

 Emergent BioSolutions Inc.  Vaccines have long been recognized In our commercial business, we are as a safe and cost-effective method for developing a range of immunobiotic preventing infection caused by various product candidates that are designed bacteria and viruses. Because of an to address significant unmet or increased emphasis on preventative underserved public health needs Advancing the fight against global infectious diseases. medicine in industrialized countries, caused by infectious diseases. vaccines are now well recognized as an With a typhoid vaccine, hepatitis B Our product candidates are intended to improve and protect the lives of millions around the world. important part of public health manage- therapeutic vaccine and a group B ment strategies. According to Frost & streptococcus vaccine in clinical Sullivan, a market research organization, development, and a chlamydia vaccine from 2002 to 2005 annual worldwide and a meningitis B vaccine in preclinical vaccine sales increased from $6.7 billion development, we are seeking to establish to $9.9 billion, a compound annual growth Commercial Products Emergent BioSolutions as an important rate of approximately 14%. Frost & Sullivan global vaccine developer. Preclinical Phase 1 Phase 2 Phase 3 estimates that the worldwide sales of vaccines will grow at a compound annual We continue to seek ways to mitigate the rate of approximately 10.5% from 2005 financial hurdles inherent in the develop- through 2012. ment of commercial vaccines. For example, Typhoid Vaccine The Wellcome Trust provided funding for the Phase I clinical trial of our typhoid vaccine candidate in Vietnam and has agreed to provide funding for the Phase II clinical trial of this vaccine candidate in Vietnam. Hepatitis B Therapeutic Vaccine Additionally, in 2006 we entered into a clinical trial agreement with NIAID under which NIAID has agreed to fund, manage and conduct an additional clinical trial of our group B streptococcus vaccine Group B Streptococcus Vaccine product candidate.

Working to help Meningitis B Vaccine conquer typhoid.

Each year some 22 million cases of typhoid occur worldwide, killing approximately 200,000 people. We are developing a single Chlamydia Vaccine dose, drinkable typhoid vaccine that, if approved, would provide an enhanced course of treatment compared to the currently approved typhoid vaccines.

 Emergent BioSolutions Inc.  Leveraging our expertise in manufacturing.

Our core competence in manufacturing is a cornerstone of our competitive advantage and a source of tangible corporate differentiation.

Independently manufacturing our We anticipate that we will begin large- product and expanding our ability to scale manufacturing of BioThrax for manufacture product candidates gives commercial sale at the new facility in 2008. us a number of important advantages. This facility is designed to manufacture It saves money, gives us greater control up to 40 million doses of BioThrax per over the manufacturing and regulatory year on a single production line and can approval process, and can accelerate produce up to 80 million doses with the product development. introduction of a second production line. By comparison, our current facility has We manufacture BioThrax at our 12.5-acre a current maximum production capacity campus located in Lansing, Michigan of approximately 9 million doses of BioThrax using cGMP manufacturing procedures. per year. In order to enhance our ability to address our expanding product development In addition to the Lansing campus, we requirements, we recently commissioned own two buildings of approximately a pilot plant facility on our Lansing campus. 145,000 square feet each, on a 15-acre In addition, we are constructing a new site in Frederick, . We are 50,000 square-foot manufacturing facility establishing plans to build out this on our Lansing campus to expand our site to provide laboratory space, product manufacturing capacity and to meet the development and pilot plant production needs of both current and future customers. capabilities, full-scale commercial We completed construction of this facility manufacturing operations, warehouse Expanding manufacturing capacity. in 2006 and expect to conduct installation, and storage facilities, fill and finish validation and qualification activities required operations and administrative office space. Our multi-building campus in Lansing, Michigan consists of facilities for for regulatory approval during 2007 and These manufacturing initiatives bulk manufacturing (including fermentation, filtration and formulation) of 2008. This high tech, state-of-the-art provide us with greater flexibility and BioThrax. The campus also provides raw material storage and in-process and facility is designed for flexibility in both independence in addressing our future final product warehousing. upstream and down-stream manufacturing. requirements for process development, We are constructing this new facility as the manufacture of clinical supplies Our Lansing expansion includes a new 50,000 square-foot manufacturing facility. a large-scale manufacturing plant that of our product candidates and, This high-tech, state-of-the-art facility is designed for flexibility and will provide will enable us to manufacture multiple ultimately, commercial production manufacturing capability of multiple vaccine products in addition to BioThrax. vaccine products in addition to BioThrax. of approved products. Our Frederick, Maryland site consists of two facilities that are available for future product development, pilot plant production, full-scale commercial manufacturing operations, warehouse and storage, fill and finish operations and administrative office space.

10 Emergent BioSolutions Inc. 11 EBS Emergent BioSolutions’ common stock began trading on November LISTED Delivering results for nearly a decade. 15, 2006 on the New York Stock NYSE Exchange under the symbol EBS. Our history shows a track record of delivering financial results, manufacturing consistency, product advancement and improvement, and an unwavering commitment to protecting lives through the delivery of 19 million doses of BioThrax.

Michigan Biologic Lansing facility Antex Biologics Future Microscience Ltd. ViVacs GmbH Initial Public Company Products Institute renovation (U.S.) acquired manufacturing (U.K.) acquired (Germany) Offering and assets acquired approved by FDA acquired NYSE listing Milestones facility (U.S.) acquired completed

1998 2001 2003 2004 2005 2006 2007

Business Achievements $83M, 2-year cost Meningitis B vaccine reimbursement collaboration signed contract signed $124M, 5M dose, with Sanofi Pasteur with DoD $129M, 5.5M dose, 3-year BioThrax providing payments Completed 3-year (extended to contract signed of up to €73M with DoD Development 6-year) BioThrax $123M, 5M dose contract signed DELIVERY IN underway PROGRESS BioThrax contract with DoD signed with HHS DELIVERED DELIVERED

$120M, 5M dose BioThrax amended contract signed Our story with HHS DELIVERED Even though we just became a public company in 2006, our roots go back to 1998 when we were incorporated as BioPort Corporation and acquired the assets of the Michigan Biologic Products Institute. In this acquisition, we secured rights to BioThrax, vaccine manufacturing facilities, and vaccine development and production technology. We acquired our pipeline of commercial product candidates through our acquisition of Antex Biologics, Inc. in 2003, Microscience Limited in 2005, and ViVacs GmbH in 2006.

12 Emergent BioSolutions Inc. 13 Building an executive management team for future success.

Our leadership team comprises senior level executives with experience and relationships in both the biodefense and commercial business segments.

Senior Executive Team

R. Don Elsey Fuad El-Hibri Robert G. Kramer, Sr. Chief Financial Officer Chief Executive Officer Executive Vice President, and Chairman of the Worldwide Manufacturing Board of Directors Thomas K. Zink, M.D. Steven N. Chatfield, Ph.D. Daniel J. Abdun-Nabi Chief Medical Officer Chief Scientific Officer Edward J. Arcuri, Ph.D. President Chief Operating Officer

14 Emergent BioSolutions Inc. 15 Board of Directors Corporate Information

Corporate Headquarters Annual Report on Form 10-K Corporate Governance 2273 Research Blvd. The information in this annual report is Our Chief Executive Officer and Chief Suite 400 a summary and should be considered Financial Officer have provided the Rockville, MD 20850 along with the company’s Annual Report certifications required by Rule 13a-14(a) United States on Form 10-K for the year ended under the Securities Exchange Act of Tel: 301-795-1800 December 31, 2006. 1934, copies of which are filed as exhibits Fax: 301-795-1899 to our Annual Report on Form 10-K. In www.emergentbiosolutions.com A copy of the company’s Form 10-K addition, our Chief Executive Officer intends for the year ended December 31, 2006, to submit his initial annual chief executive Other Locations filed with the Securities and Exchange officer certification to the New York Stock Emergent Biodefense Commission, is available without charge Exchange within 30 days of the date of Fuad El-Hibri Zsolt Harsanyi, Ph.D.(1*, 2, 3*,4) Ronald B. Richard (1, 2*, 3) Jerome M. Hauer Operations Lansing Inc. upon written request to Investor our Annual Meeting of Stockholders in Chairman and Chairman and President and Chief Executive Officer, 3500 N. Martin Luther King Jr. Blvd. Relations, Emergent BioSolutions, 2273 accordance with the New York Stock Chief Executive Officer, Chief Executive Officer, Chief Executive Officer, The Hauer Group, LLC; Lansing, MI 48906 Research Blvd, Suite 400, Rockville, MD Exchange listing requirements. Emergent BioSolutions Inc. Exponential Biotherapies, Inc. The Cleveland Foundation Former Director, United States 20850, by calling (301) 795-1800 or by City of New York Office of Emergency Management Tel: 517-327-1500 accessing the company’s website at Emergent BioSolutions Inc. is strongly Fax: 517-327-7202 www.emergentbiosolutions.com. committed to the highest standards of ethical conduct and corporate governance. Emergent Product Independent Registered Our Board of Directors has adopted Development Gaithersburg Inc. Public Accounting Firm Corporate Governance Guidelines, along 300 Professional Drive, Suite 100 Ernst & Young LLP with the charters of the Board Committees Gaithersburg, MD 20879 McLean, VA and a Code of Conduct and Business Ethics United States United States for directors, officers and employees, all 1 Audit Committee Tel: 301-590-0129 of which are available on the company’s 2 Compensation Committee Fax: 301-590-1252 Stock Transfer Agent and Registrar website at www.emergentbiosolutions.com. 3 Nominating & Corporate Investors with questions concerning Governance Committee Emergent Product account information, new certificate 4 Lead Independent Director Development Germany GMBH issuances, lost or stolen certificate * Chairman of Committee Am Klopferspitz 19 replacement, securities transfers, or Special Note About Forward-Looking Statements This annual report contains forward-looking statements Shahzad Malik, M.D. (1, 2) Louis W. Sullivan, M.D. Joseph M. Allbaugh 82152 Martinsried the processing of a change of address Germany should contact: within the meaning of the Private Securities Litigation General Partner, President Emeritus, President and Chief Executive Officer, Reform Act of 1995 and Section 21E of the Securities Advent Venture Morehouse School of Medicine; The Allbaugh Company, LLC; Tel: +49 89 550 698 80 Exchange Act of 1934, as amended, that involve substantial Partners LLP Former Secretary, Department Former Director, Federal Emergency Fax: +49 89 550 698 888 American Stock Transfer & risks and uncertainties. All statements, other than of Health and Human Services Management Agency Trust Company statements of historical fact, including statements Emergent Product 59 Maiden Lane, 1st Floor regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, Development U.K. Limited New York, NY 10038 plans and objectives of management, are forward-looking Corporate Executive Officers 540-545 Eskdale Road United States statements. The words “anticipate,” “believe,” “estimate,” Winnersh Triangle Tel: 800-937-5449 or 212-936-5100 “expect,” “intend,” “may,” “plan,” “predict,” “project,” Wokingham, Berkshire, RG41 5TU www.amstock.com “will,” “would” and similar expressions are intended to Fuad El-Hibri Robert G. Kramer, Sr. Kyle W. Keese identify forward-looking statements, although not all United Kingdom Chairman of the Board of Directors Executive Vice President, Senior Vice President, forward-looking statements contain these identifying words. Tel : +44 (0)118 944 3300 Corporate Counsel and Chief Executive Officer Worldwide Manufacturing Marketing and Communications Fax: +44 (0)118 944 3302 Wilmer Cutler Pickering Hale There are a number of important factors that could and Dorr LLP cause the company’s actual results to differ materially Daniel J. Abdun-Nabi Steven N. Chatfield, Ph.D. Denise Esposito from those indicated by such forward-looking statements, Emergent Sales and Washington, DC including our performance under existing BioThrax President and Secretary Senior Vice President Senior Vice President, Marketing Germany United States sales contracts with the U.S. government, including the and Chief Scientific Officer Legal Affairs, and General Counsel Am Klopferspitz 19 timing of deliveries under these contracts; our ability Edward J. Arcuri, Ph.D. 82152 Martinsried Annual Meeting to obtain new BioThrax sales contracts with the U.S. government; our plans for future sales of BioThrax; our Chief Operating Officer Thomas K. Zink, M.D. Mauro Gibellini Germany Thursday, June 14, 2007 plans to pursue label expansions and improvements Senior Vice President Senior Vice President, Tel: +49 89 895 449 28 10 a.m. Eastern Time for BioThrax; our plans to expand our manufacturing R. Don Elsey and Chief Medical Officer Corporate Development Fax: +49 89 895 458 81 Hyatt Regency Bethesda facilities and capabilities; the rate and degree of market Vice President, Finance, 1 Bethesda Metro Center acceptance and clinical utility of our products; our ongoing and planned development programs, preclinical studies Chief Financial Officer and Treasurer Emergent Sales and Bethesda, MD 20814 and clinical trials; our ability to identify and acquire or in Marketing Singapore United States license products and product candidates that satisfy our 10 Anson Road selection criteria; the potential benefits of our existing International Plaza #16-12 Investor Relations collaboration agreements and our ability to enter into selective additional collaboration arrangements; the Singapore 079903 Mr. Robert Burrows timing of and our ability to obtain and maintain regulatory Heads of Operating Subsidiaries Tel: +65-6822 8007 Vice President, approvals for our product candidates; our commercial- Fax: +65-6822 8006 Corporate Communications ization, marketing and manufacturing capabilities and Robert G. Kramer, Sr. Michael J. Langford, DVM, Ph.D. E-mail: [email protected] strategy; our intellectual property portfolio; our estimates President and Chief Executive Officer, President, Emergent Product regarding expenses, future revenue, capital requirements Tel: 301-795-1877 and needs for additional financing; and other factors Emergent Biodefense Operations Development Gaithersburg Inc. Fax: 301-795-1899 identified in the company’s Annual Report on Form 10-K Lansing Inc. for the year ended December 31, 2006 and subsequent Andreas Hartmann, Ph.D. Market Information reports filed with the SEC. The company disclaims any intention or obligation to update any forward-looking Steven N. Chatfield, Ph.D. Managing Director, Emergent Emergent BioSolutions Inc. common statements as a result of developments occurring after President, Emergent Product Product Development stock has traded on the New York Stock the date of this annual report. Our forward-looking Development U.K. Limited Germany GmbH Exchange under the trading symbol EBS statements do not reflect the potential impact of any since November 15, 2006. future acquisitions, mergers, dispositions, joint ventures © 2007 Emergent BioSolutions Inc. or investments we may make. BioThrax® is a registered trademark and spi-VEC™ is a trademark of Emergent BioSolutions. 16 Emergent BioSolutions Inc. Corporate Headquarters

2273 Research Boulevard, Suite 400, Rockville, MD 20850, USA www.emergentbiosolutions.com