RNS Number:2650F
Dermasalve Sciences PLC
05 October 2007


                            DermaSalve Sciences plc

                           Convertible Loan Agreement

DermaSalve Sciences plc ("DermaSalve" or the "Company") is pleased to announce
that on 4 October 2007 the Company entered into an agreement with Trafalgar
Capital Specialized Investment Fund ("Trafalgar"), which is an investor in high
growth publicly-traded companies, to raise #700,000 by way of a convertible loan
(the "Convertible Loan").

The Convertible Loan has a maturity date of 4 October 2009 and carries a coupon
of 8 per cent. per annum, payable monthly in cash.

The Convertible Loan is convertible into ordinary shares of the Company (the "
Ordinary Shares") at a conversion price which is the lower of (a) 7.254p,
representing 125 per cent. of the volume weighted average price of the Ordinary
Shares as reported by Bloomberg (the "VWAP") on 4 October 2007 ("the Fixed
Conversion Price"); and (b) 85 per cent. of the lowest VWAP during the five
consecutive trading days after the date of a conversion notice.  The Convertible
Loan can not be converted prior to 18 November 2007 and further Trafalgar has
agreed not to convert more than #60,000 in any week period.

The Company may repay part or all of the Convertible Loan at any time prior to
the maturity date, provided that the market price of the Ordinary Shares at the
time of the redemption notice is below the Fixed Conversion Price and subject to
the payment of a redemption premium.

In connection with the Convertible Loan, the Company has issued warrants to
Trafalgar to subscribe for 1,300,000 new Ordinary Shares at any time before 4
October 2012 at an exercise price of 5.803p per share.  The Company has also
agreed to pay a facility commitment fee of #28,000 as well as the issue and
allotment of 253,952 new Ordinary Shares to Trafalgar.  Application will be made
for the 253,952 new Ordinary Shares to be admitted to trading on AIM and
admission is expected to occur on 11 October 2007.

Dr. Mark Randle, Chief Executive of DermaSalve, said: "We have identified a
number of potentially significant opportunities between now and the year end.
The scale and likely timing of these opportunities mean that we need to
demonstrate both balance sheet strength and an ability to move quickly if
required.  While there is no guarantee that these opportunities will come to
fruition, they have the potential to substantially increase the scale of our
operations."

Piers Linney, a Trafalgar Principal, commented: "Dermasalve's products have a
great deal of potential in international markets and we are pleased to have the
opportunity to invest in the Company's ongoing development."


Enquiries:

DermaSalve Sciences plc                                        0191 260 5070
Dr. Mark Randle, CEO
Phil Pattison, Finance Director
www.dermasalve.com

Hansard Group                                                  020 7245 1100
Adam Reynolds / Brendan Adams

Hanson Westhouse Limited                                      0113 246 2610
Tim Feather / Matthew Johnson



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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