Healthcare Industry News:  Wound Dressing 

Devices Wound Care

 News Release - February 23, 2006

Derma Sciences Will Manufacture a Line of Smith and Nephew Wound Dressings

Enters Multi-Year Agreement for Worldwide Sales

PRINCETON, N.J.--(HSMN NewsFeed)--Feb. 23, 2006--Derma Sciences, Inc. (OTCBB: DSCI ), a manufacturer and full line supplier of wound and skin care products, today announced that the company has entered into a multi-year agreement with Smith and Nephew plc to manufacture a line of S&N brand Wound Dressing for sale around the world. The company expects first year revenue from the agreement of approximately $1 million.

"Our company is proud to be working with market-leader Smith and Nephew," said Edward J. Quilty, President and CEO. "Our selection speaks to Derma Sciences' commitment to quality products, and reflects the confidence and belief Smith & Nephew has in our company. We look forward to working closely with them and for the opportunity to work on additional projects in the near future."

About Derma Sciences, Inc.

Derma Sciences, Inc. provides a full range of skin care; wound management and specialty securement devices that are used primarily in the professional markets, specifically hospitals, nursing homes and home care settings. For more information about Derma Sciences, Inc., visit its home page on the Internet at http://www.dermasciences.com.

About Smith & Nephew plc

Smith & Nephew is a global medical technology business, specializing in Orthopedics, Endoscopy and Advanced Wound Management products. Smith & Nephew is a global leader in arthroscopy and advanced wound management.

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 filings with the Securities and Exchange Commission.


Source: Derma Sciences

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Please address inquiries directly to the issuing company.



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