Devices Wound Care

 News Release - October 17, 2007

Derma Sciences Announces Launch Of MEDIHONEY(TM) Wound Care Dressings

Shipping Initial Sales of First Honey-Based Product Available in US

PRINCETON N.J.--(HSMN NewsFeed)--Derma Sciences, Inc. (OTCBB: DSCI ) Derma Sciences, a manufacturer and marketer of advanced wound care products, today announced that it has launched and shipped its first sales of Active Leptospermum-(Manuka) honey based MEDIHONEY(TM), the first honey-based wound care product available in the US. Derma Sciences received FDA clearance for MEDIHONEY(TM) in July 2007.

CEO Ed Quilty said, "This is a significant milestone for Derma Sciences. For the past few years, we have focused our efforts on penetrating the advanced wound care market, which is a $2.3 billion market in the US and expected to grow 11% per year. Derma Sciences recently launched one new product into this market with the 2005 FDA clearance of our silver-based antimicrobial, ALGICELL(TM) Ag. Pending our receipt of appropriate Medicare reimbursement codes, we plan to soon launch our FDA-cleared MOBILITY1(TM) treatment for vascular diseases. MEDIHONEY(TM) represents our most significant effort to date and we are excited to have simultaneously launched the products at a well-attended industry conference and to also have shipped our first sales of the product. With our partner, New Zealand-based Comvita's dominance in the procurement of Leptospermum Honey and the investment we have made in sales and marketing, we expect the launch of this product to result in significant top-line growth in 2008 and beyond."

VP of Marketing & Business Development Barry J. Wolfenson commented, "The body of evidence supporting MEDIHONEY's(TM) effectiveness in the management of wound and burns continues to grow. In May 2007, a randomized controlled trial (RCT) using Active Leptospermum Honey in the management of chronic wounds was announced at the European Wound Management Association's annual conference held in Glasgow, Scotland. While the complete findings of the study will be published in an international journal in Q4, 2007, the preliminary findings indicated that the group treated with honey (dressings) experienced a higher rate of debridement and significantly faster healing than in the group treated with another advanced wound care gel. The August 7, 2007 issue of the Washington Post featured a full-length article on the use of Active Leptospermum Honey as an emerging technology in this area. And the September issue of the journal WOUNDS featured an article on the use of MEDIHONEY for management of chronic and acute wounds and burns.

"The initial interest we are seeing from our customers is very encouraging," continued Wolfenson. "The 22nd annual Clinical Symposium on Advances in Skin & Wound Care was held last week in Nashville, and the interest in MEDIHONEY was tremendous. Additionally, we were notified that the topic of the use of Leptospermum Honey in the management of chronic wounds and burns was put onto the agenda at the prestigious Wound Healing: Science and Industry meeting, held annually in St. Thomas. We anticipate this topic will be included on all the wound-oriented show agendas as news of the product's availability and effectiveness spreads."

About Derma Sciences, Inc.

Derma Sciences is a manufacturer and marketer of advanced wound care products, with operations based in the US and Canada, and sales worldwide. The company sources Active Manuka (Leptospermum scoparium) Honey from Comvita New Zealand, Ltd. Comvita controls over 70% of the flow of manuka honey, and owns several patents around the use of honey in wound dressings. In February 2006, Derma Sciences and Comvita entered into a licensing agreement granting Derma Sciences the exclusive rights to Comvita's technology and honey for marketing and sale to healthcare professionals into the North, South, and Central American markets. Derma Sciences is also the global manufacturer for the Comvita brand of several of the honey-based dressings. For more information about Derma Sciences, Inc., visit its home page on the Internet at 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 filings with the Securities and Exchange Commission.

Source: Derma Sciences

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