Derma Sciences Announces New Contract With Major Medical Products Supplier for Private Label Adhesiv...( Contract's Annual Value Estimated to ...),Health

Contract's Annual Value Estimated to Range from $1.5 Million - $3 Million

PRINCETON, N.J., May 6 /PRNewswire-FirstCall/ -- Derma Sciences (OTC Bulletin Board: DSCI), a manufacturer and marketer of advanced wound care products, today announced it has signed a new contract to supply private label adhesive bandages to one of the largest medical supply companies in the U.S. Annual revenues under the contract are expected to range between $1.5 to $3.0 million for Derma Sciences. Shipments to the customer will begin in the third quarter of 2009.

"We are delighted to formally announce this new contract, which is a milestone for Derma Sciences and illustrates the promise inherent in our recently acquired First Aid Division (FAD)," said CEO Ed Quilty. "We knew the FAD was a business unit with great potential, once the cost of manufacturing issues were sorted out. The contract illustrates the excellent operational condition of our FAD and is a prime example of why we purchased the division. We believe investors will now begin to see not only the improved costs associated benefits to our bottom line, but also will see accelerated top-line revenue growth as well."

The initial term of the contract is 18 months, with automatic one-year extensions. Either party can terminate the contract upon 90 days notice. Due to the nature of the private label agreement, the name of the medical supply company cannot be made public.

The contract was originally announced during the Company's fourth quarter, year-end results teleconference held on April 1 and sales to the customer were originally estimated to begin in the first quarter of 2010.

About Derma Sciences

Derma Sciences is a global manufacturer and marketer of advanced wound care products. Its key product, MEDIHONEY(R),
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