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Carrington and DaySpring Pharma Extend and Formalize Agreement for Distribution of Diabetic and Radiation Products Into Physician Market
Date:10/1/2007

- Five-year Agreement

- Guaranteed Purchase Requirements - Good Faith Negotiations for Contract Manufacturing of DaySpring Core

Products

- Value Projected To Range Between $4.4M-7M Over Five Years

IRVING, Texas, Oct. 1 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. (Pink Sheets: CARN) (http://www.CarringtonLabs.com) today announced it has formalized its previously announced multi-year supply and distribution term sheet with DaySpring Pharma, LLC (http://www.dayspringpharma.com). The previous announcement included a two-year term; the final, formal agreement has been extended to five years.

Under the terms of this agreement, Carrington will supply multiple prescription products based on Carrington's flagship DiaB(TM) and Radia(TM) brands to DaySpring for distribution into the physician market. Carrington's DiaB(TM) and Radia(TM) products have been developed specifically for diabetic wound care and for patients undergoing radiation therapy. In exchange for guaranteed volumes of these prescription products, DaySpring will receive market protection in the physician market. All products will contain Carrington's Acemannan Hydrogel(TM). The parties will also enter into good faith negotiations for the manufacture and supply of other DaySpring products.

"We are excited about the formal partnership with DaySpring. This relationship provides the platform to take our leading brands that include Acemannan Hydrogel(TM) into other healthcare markets outside hospitals, nursing homes, and home healthcare facilities," stated Doug Golwas, vice president of corporate sales and marketing for Carrington. "These products are a natural extension for DaySpring's sales force and channels to market. DaySpring currently markets to prescription health
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SOURCE Carrington Laboratories, Inc.
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