Derma Sciences Announces Pricing of Follow-on Offering

PRINCETON, N.J., Feb. 17 /PRNewswire-FirstCall/ -- Derma Sciences, Inc. (Nasdaq: DSCI), a specialty medical device and pharmaceutical company focused on advanced wound care, today announced the pricing of a public offering of 972,000 shares of DSCI common stock and 324,000 warrants to purchase shares of common stock at a price of $5.50. Each share, together with a warrant to purchase one-third of a share, was priced at $5.00. The Company has granted the underwriters a 45-day option to purchase up to an additional 145,800 shares of common stock and 48,600 warrants to purchase shares of common stock to cover over-allotments, if any.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM), acted as sole book-running manager for the offering.

The offering of these securities will be made only by means of a prospectus. The Securities and Exchange Commission has declared a registration statement relating to these securities effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Copies of the final prospectus relating to the offering may be obtained for free by visiting the U.S. Securities and Exchange Commission website at http://www.sec.gov. Alternatively, a copy of the prospectus related to this offering may be obtained from Rodman & Renshaw, LLC, Prospectus Department, 1251 Avenue of the Americas, New York, NY, 10020, telephone: 212-430-1710 or email: [email protected].

About Derma Sciences

Derma Sciences is a global manufacturer and marketer of advanced wound care products. Its key product, MEDIHONEY(R), 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 the focus of a positive large-scale randomized controlled trial on leg ulcers. Derma's recently FDA cleared BIOGUARD(TM) Barrier Dressing is the Company's latest new product entrant into the $14 billion global wound care market. Derma also has in development DSC127, a novel angiotensin analog for accelerated wound healing and scar reduction. One possible mode of action of DSC127 is the up-regulation of mesenchymal stem cells at the wound site. Derma Sciences expects to announce the endpoint results from this study during Q3 of 2010.

Forward-Looking Statements

Statements contained in this 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 which may be made in this release or which are otherwise made by or on behalf of the Company. Factors which 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 fillings with the Securities and Exchange Commission.

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SOURCE Derma Sciences, Inc.