Derma Sciences Achieves Key MEDIHONEY® Sales Milestone

Derma Sciences, Inc. (“Derma Sciences” or “the Company”) (Nasdaq: DSCI), a medical device and pharmaceutical company focused on advanced wound care, today announced it has achieved a key MEDIHONEY® sales milestone and is now on a greater than $7.0 million annual sales run rate. Under the terms of its exclusive worldwide licensing agreement with Comvita New Zealand Ltd., the supplier of medical grade Leptospermum (manuka) honey, Derma Sciences is to pay Comvita $1.0 million when the sales milestone is reached. The cash payment will be made on August 30, 2011.

“When we finalized our licensing agreement with Comvita in February of last year, we did not anticipate that we would reach this sales milestone so quickly,” said Edward J. Quilty, chairman and chief executive officer of Derma Sciences. “The rapid growth in MEDIHONEY sales, which more than doubled in the first quarter of this year compared with last year, is due to the expansion of our sales team over the past year both in the U.S. and abroad and the recognition among wound care clinicians of the excellent healing effects of this product, both anecdotally in their own patients and in published peer reviewed articles. With an annual run rate of more than $7.0 million now, and the expected launch next year of our recently 510(k)-cleared patented MEDIHONEY Hydrogel dressings, we are looking forward to increasing our investment in dedicated sales representatives to continue to accelerate growth not only in our MEDIHONEY line, but in our growing portfolio of advanced wound care products,” Mr. Quilty added.

Brett Hewlett, chief executive officer of Comvita said, “We have been impressed by the dedication of the Derma Sciences team and commitment of resources to make MEDIHONEY the leading brand of honey-based dressings for the management of wounds and burns. We are very pleased to receive this success-based milestone.”

About Derma Sciences, Inc.

Derma Sciences is a medical technology company focused on three segments of the wound care marketplace, traditional dressings, advanced wound care dressings, and pharmaceutical wound care products. Its MEDIHONEY® product 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 involving 108 subjects with leg ulcers. Other novel products introduced into the $14 billion global wound care market include XTRASORB® for better management of wound exudate, and BIOGUARD® for infection prevention. Derma Sciences has successfully completed a Phase 2 clinical trial in diabetic foot ulcer healing with DSC127, a novel pharmaceutical drug under development for accelerated wound healing and scar reduction. For more information please visit www.dermasciences.com.

Forward-Looking Statements

Statements contained in this news 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 that may be made in this news release or that are otherwise made by or on behalf of the Company. Factors that 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 filings with the U.S. Securities and Exchange Commission.

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