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Derma Sciences Obtains Exclusive Worldwide Rights to MEDIHONEY(R)
Date:12/22/2009

The transaction is subject to certain financing contingencies and Derma Sciences' listing on NASDAQ. Derma Sciences expects that the financing contingencies will be satisfied and the NASDAQ listing accomplished prior to the end of January 2010. License payment details were not disclosed, but the transaction will be in cash and Derma Sciences common shares, as well as customary royalty and milestone payments. Comvita currently holds a 10.1% stake in Derma Sciences.

Derma Sciences and Comvita expect to sign the definitive license by February 1, 2010.

Edward J. Quilty, Chairman & CEO of Derma Sciences, said, "MEDIHONEY® has been a major success for our company ever since our product launch in 2007. The dressing line enjoys tremendous clinical and nursing support in the wound care community, and is considered a top new dressing in its category. There are currently over 15 peer review articles and 25 clinical posters detailing its use."

Comvita Chairman Neil Craig said, "We are pleased to finalize the agreement which was delayed over a year due to the turmoil in the global financial markets. The agreement signals a major milestone for Comvita's significant investments into the application of honey in medical applications. We have a great deal of confidence in Derma's ability to exploit the considerable opportunity for MEDIHONEY® in the professional medical market--they are, after all, specialists in the field."

Quilty continued, "We've added 10 direct sales reps and several manufacturers reps since we first acquired MEDIHONEY®. As a result of the increase, MEDIHONEY® revenue nearly doubled, from $0.97 million in the first nine months of 2008, to $1.90 million during the first nine months of 2009. Now that Derma has secured a long-term agreement, we plan to significantly increase the size of our sales force in 2010. We will create a Managing Director position in Europe and are currently int
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SOURCE Derma Sciences, Inc.
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