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Derma Sciences Announces $6 Million Agreement

Friday, May 23, 2008 General News
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PRINCETON, N.J., May 22 Derma Sciences, Inc.(OTC Bulletin Board: DSCI), a provider of advanced wound-care products,announced today that it has reached an agreement in principle with a majorCanadian retail pharmacy chain, and expects a contract to be executed by bothparties in the near future. The terms call for minimum purchases of$2 million each year for three years, totaling at least $6 million. The$2 million per year will be comprised of a mix of MEDIHONEY(TM) antimicrobialdressings, private label adhesive strips and traditional wound-care dressings.During the term of the agreement, the retailer will have the exclusive rightsto distribute Derma Sciences' MEDIHONEY antimicrobial products at retailthroughout Canada. Derma Sciences received clearance from Health Canada in Q32007 to market and sell their MEDIHONEY Antimicrobial Dressings with ActiveLeptospermum Honey.
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CEO Ed Quilty commented, "As we have stated previously, bringing theMEDIHONEY line to the retail market is a significant priority for us.Entering into an exclusive distribution arrangement with this large retailerfurther validates the brand and underscores the interest being generated byconsumers. Additionally, linking the exclusivity on MEDIHONEY to incrementalsales for our private label line of adhesive strips and traditional wound-caredressings is a great example of how sales of MEDIHONEY is providingsignificant pull-through product sales, and also why the First Aid Division weacquired last year made terrific sense. We believe we are uniquely positionedin the field of first aid wound care to leverage our proprietary technologiesand command a greater share of the basic wound care and adhesive stripbusiness.
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"As the MEDIHONEY line has been rolled out into the global markets, theretail interest has always followed. We expect there to be similar dealsestablished in these other markets, which will represent large growthopportunities for Derma Sciences and our global commercialization partner,Comvita New Zealand, Ltd."

Initial orders of the MEDIHONEY line are expected to take place inDecember 2008, and initial orders for the other products are anticipated tobegin in the Spring of 2009.

About Derma Sciences

Derma Sciences is a global manufacturer and marketer of advancedwound-care products. Its key product, MEDIHONEY, is sold throughout the worldby Derma Sciences and Comvita New Zealand -- the licensor of the patentedhoney-based technology -- and is the leading brand of honey-based dressingsfor the management of wounds and burns. The product has been shown to beeffective in a variety of wounds and burns, and was recently the focus of alarge-scale randomized controlled trial on leg ulcers. For more informationabout Derma Sciences, Inc., visit its home page on the Internet athttp://www.dermasciences.com.Contact: Derma Sciences, Inc. Allen & Caron Inc Edward J. Quilty Rudy Barrio (US Investors) Chairman and CEO [email protected] [email protected] (609) 514-4744 Brian Kennedy (media) [email protected] (212) 691-8087

SOURCE Derma Sciences, Inc.
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