Healthcare Industry News:  Diabetic Foot Ulcer 

Devices Wound Care Regulatory

 News Release - June 7, 2010

Derma Sciences Receives CE Mark for ALGICELL(R) Ag

CE Certification Enables Dressing to be Sold to Growing European Advanced Wound Care Market

PRINCETON, N.J., June 7 (Healthcare Sales & Marketing Network) -- Derma Sciences, Inc. (Nasdaq:DSCI ), a medical device and pharmaceutical company focused on advanced wound care, today announced that its ALGICELL® Ag wound dressings have received a CE mark for use in the European Union. SGS Group, the world's largest Control and Inspection Company, supervised the assessment and certification process.

The CE marking verifies that ALGICELL® Ag has met all relevant European Union consumer safety, health or environmental requirements, and can be sold in the 30-nation European Economic Area (EEA).

ALGICELL® Ag is an antimicrobial silver alginate dressing that delivers 1.4% ionic silver at a slow consistent release rate for strong broad-spectrum efficacy. ALGICELL® Ag provides advanced bactericidal action with kill rates of approximately 99.99%, while absorbing approximately 16% more exudates than the leading competitive product. The dressing's superior absorption and optimal gelling profile are ideal for moderate-to-heavily exuding wounds, including Diabetic Foot Ulcers, leg ulcers, pressure ulcers/sores, and traumatic and surgical wounds. ALGICELL® Ag is designed to keep its form to allow for easy and trauma free removal, while still maintaining a moist wound environment, conducive to wound healing.

The timing of the CE certification coincides with the recent establishment of Derma Sciences Europe Limited. Antimicrobial silver dressings are one of the largest and fastest growing categories in advanced wound care within the European Union. Along with MEDIHONEY® and XTRASORB™, ALGICELL® Ag will allow Derma Sciences to offer a full range of fast growing products to its new European customers. Since 2006, ALGICELL® Ag has generated sales of approximately $4 million in the US, and the Company anticipates similarly brisk sales in Europe.

Derma Sciences Chairman and CEO, Edward J. Quilty, commented, "The advanced wound care market is forecast to grow quickly in Europe over the next few years. Heightened awareness of infection issues is expected to continue to drive demand for anti-microbial dressings. Now that we have received CE certification, and are opening our new UK office, we intend to take advantage of positive trends in the EU market to aggressively ramp up sales of ALGICELL® Ag. We believe our timing is right due to a growing awareness of the exorbitant expense of many silver dressings, especially in the UK, where the amount of National Health Service cash spent on these products has climbed steeply in recent years. In contrast, Derma Sciences, with ALGICELL® Ag, offers a best-in-class product with a distinct cost advantage."

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™ for better management of wound exudates, and BIOGUARD™ 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

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.

Source: Derma Sciences

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