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Derma Sciences Launches XTRASORB(TM) Foam Wound Dressing

Tuesday, May 4, 2010 General News J E 4
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PRINCETON, N.J., May 4 Derma Sciences, Inc. (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, today announced the launch of its new XTRASORB(TM) Foam dressing. The dressing is the company's first novel entry in the $300 million foam wound dressing market. First sales are expected during the second quarter of 2010.

The majority of chronic wounds tend to have moderate to heavy levels of wound fluid, which is best managed with absorbent dressings. For the past 25 years, a key type of dressing for this function has been polyurethane foam dressings. In fact, within the past 5 years, this category of dressings has surpassed hydrocolloids as the leading absorbent dressing used for moist wound healing. Since the advent of these dressings over 20 years ago, the basic mechanical aspects of the dressings have remained largely the same.

XTRASORB(TM) Foam has been designed to provide a marked advancement to standard polyurethane foam dressings. The difference is on the outer facing portion of the dressing. Bonded to this side is a patented super absorbent polymer (SAP) sheet. The SAP sheet not only allows XTRASORB(TM) Foam to absorb significantly more fluid than market leading foam dressings, but the technology also allows the fluid to be locked into the dressing. This greatly reduces the chances of wound deterioration due to constant exposure to large amounts of wound fluid, and also minimizes the exposure to harmful components within wound fluid such as bacteria. These benefits are aimed to greatly enhance both the clinical and cost-effectiveness of XTRASORB(TM) Foam versus current market leading offerings.

"XTRASORB(TM) Foam adds another strong product to Derma Sciences' advanced wound care product portfolio," stated Edward J. Quilty, Chairman and CEO of Derma Sciences. "Foam dressings are the largest category of moist wound care dressings, and our product outperforms its competitors on multiple clinical efficacy dimensions. We expect that incremental sales from XTRASORB(TM) Foam will help us hit our advanced wound care sales goals for 2010, and are confident that we will continue to grow sales in 2011 and 2012 as we begin to take market share. Additionally, these line extensions continue to deliver strong gross margins. Therefore, we believe that XTRASORB(TM) Foam will have long-term positive impact on our profitability."

XTRASORB(TM) super absorbent dressings can be used on an assortment of chronic and acute wounds, including: pressure ulcers, venous leg ulcers, arterial ulcers, diabetic foot ulcers, post-operative wounds, traumatic wounds, and donor sites. XTRASORB(TM) Foam is indicated for moderately to heavily exuding wounds. Derma Sciences' flagship chronic wound dressing, XTRASORB(TM) "Classic", was initially launched in November 2008, and is indicated for heavily exuding wounds. In the third quarter of 2010, the company plans to launch XTRASORB(TM) HCS, a hybrid dressing made of hydrogel and hydrocolloid components, which is indicated for dry to moderately exuding wounds.

About Derma Sciences, Inc.

Derma Sciences is a global medical device and pharmaceutical company focused on wound care. Its key product, MEDIHONEY®, is the leading brand of honey-based dressings for the management of wounds and burns. The product has been shown to be effective in a variety of indications, and was the focus of a positive large-scale randomized controlled trial on leg ulcers. Other key novel products introduced into the $14 billion global wound care market include XTRASORB(TM) for better management of wound exudates, and BIOGUARD(TM) for infection prevention. Derma also has in development DSC127, a novel pharmaceutical for accelerated wound healing and scar reduction. DSC127, an angiotensin analog, has shown positive healing results in multiple pre-clinical animal models. One possible mode of action of the drug is the up-regulation of mesenchymal stem cells at the wound site. Derma expects to announce the key efficacy endpoint results from this study by the end of 2010.

For more information about Derma Sciences, Inc., visit http://www.dermasciences.com.

Forward-Looking Statements

Statements contained in this release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company's actual results and could cause such results to differ materially from any forward-looking statements which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which may affect the Company's results include, but are not limited to, product demand, market acceptance, impact of competitive products and prices, product development, completion of an acquisition, commercialization or technological difficulties, the success or failure of negotiations and trade, legal, social and economic risks. Additional factors that could cause or contribute to differences between the Company's actual results and forward-looking statements include but are not limited to, those discussed in the Company's fillings with the Securities and Exchange Commission.

Contacts: Derma Sciences, Inc. Barry Wolfenson Executive Vice President, Global Marketing and Business Development bwolfenson@dermasciences.com (609) 514-4744 The Investor Relations Group 212-825-3210 Janet Vasquez (Media Relations)

SOURCE Derma Sciences
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