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Derma Sciences Announces 3-Year Licensing Deals for Highly Profitable Character Strip Bandages

Immensely popular licensed characters will add significant growth to the

company's first aid division

PRINCETON, N.J., Oct. 28 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (OTC Bulletin Board: DSCI) announced today that it has secured two additional licenses to manufacture character bandages. The three-year licenses for use within the highly popular and growing segment of printed bandages allows for distribution of private label products into the main channels including mass market stores, drug store chains, supermarket chains and the medical market. Although confidentiality clauses prohibit mass disclosure of the specific characters, the newly licensed characters have been featured in major films grossing over $1 Billion combined, as well as enormously successful TV shows and comic books.

Bandages for children make up roughly 70% of the market for consumer adhesive bandages, and licensed character bandages make up a large and growing portion of this segment. Gross margins tend to be around 10% higher for these types of bandages versus traditional non-character bandages.

Derma Sciences CEO Ed Quilty stated, "Character bandages currently make up roughly 20% of our overall adhesive strip business. It is the most profitable part of our strip line, and is the fastest growing. Aligning ourselves with blue-chip character franchises really represents an unprecedented opportunity for Derma. We are delighted to have the ability to stage the launches of the bandages around major motion picture releases over the coming three years. As I have stated in the past, our new first aid division will turn out to be one of the significant contributors to Derma's overall growth and profitability. These new licensing deals will help us to more quickly reach our stated goal of $100 million in annual sales."

About Derma Sciences

Derma Sciences is a global manufacturer and marketer of advanced wound-care products. Its key product, MEDIHONEY(TM), is sold throughout the world by Derma Sciences and Comvita New Zealand -- the licensor of the patented honey-based technology -- and 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 wounds and burns, and was recently the focus of a large-scale randomized controlled trial on leg ulcers. Derma has two products in development: the BIOGUARD(TM) line of barrier gauze dressings, and DSC127, the company's novel angiotensin analog for accelerated wound healing and scar reduction. The barrier technology was licensed from Quick-Med in Q1 of 2007 and is pending its initial FDA marketing clearance. DSC127 was licensed from The University of Southern California in Q4 of 2007 and is entering into a Phase II study, with anticipated initial patient enrollment to begin in Q3 of 2008. For more information about Derma Sciences, Inc., visit its home page on the Internet at

Contact: Derma Sciences, Inc. Allen & Caron Inc

Edward J. Quilty Rudy Barrio (US Investors)

Chairman and CEO

(609) 514-4744 Brian Kennedy (media)

(212) 691-8087

SOURCE Derma Sciences, Inc.
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