Expected next investor conference call information:
Conference Call Date: 11/16/2009
Conference Call Time (ET): 11:00 AM
Conference Call URL: http://phx.corporate-ir.net/playerlink.zhtml?c=107533&s=wm&e=2539678

Shares for Derma Sciences Inc. (OTCBB: DSCI) were down during the afternoon of trading on Monday and closed down three cents at closing.

To view our StockGuru Spotlight on Derma Sciences Inc. (OTCBB: DSCI), please visit: http://www.stockguru.com

What is the StockGuru Spotlight?

The StockGuru Spotlight features stocks that we expect some action in. Generally speaking we expect a strong showing in the market based on the market, our knowledge of the stock and the buzz in the markets. Many times these will be stocks that have big news out recently, there is fresh interest in getting the word out on these stocks or we hear a buzz in our day to day contacts on these stocks. If we think it is going to move or see action, we put it in the StockGuru Spotlight. If we are compensated for a stock in the Spotlight, it will be clearly disclosed within this Spotlight Announcement.

If you think a company should be featued in the StockGuru Spotlight, please let us know. If you are a key person for a publicly traded company, we can consider your company for either a StockGuru Spotlight or a StockGuru Profile. Please contact our Publisher John Pentony at the john@stockguru.com. You may also telephone John Pentony at (469) 252-3031.

Stockguru.com ("SG") provides its members with the latest news, press releases, and research reports for all the companies highlighted on the site. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. Any opinions expressed are subject to change without notice. SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SG makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed onhttp://www.Stockguru.com or mentioned herein.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected", "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies= annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and SG undertakes no obligation to update such statements. Pentony Enterprises LLC is occassionally compensated for coverage. When this is the case, we indicate clearly with a disclosure of all compensation received in the past and present, plus we also disclose any anticipated compensation in the future. Compensation is typically in cash. Sometimes a third party shareholder pays us in free trading shares. Sometimes a company pays us in restricted shares. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.

CONTACT: John Pentony, Publisher, Stockguru.com Tel: +1 469 252 3031 e-mail: john@stockguru.com WWW: http://www.stockguru.com

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

    --  Net sales totaled $12,882,425 in the third quarter of 2009, an 11.4%
        increase compared to $11,563,341 in the second quarter of 2009, and a
        0.4% increase compared to $12,832,574 in the third quarter of 2008.
    --  Net income of $139,603, or $0.00 per share (basic and diluted) was
        generated in the third quarter of 2009, compared to a net loss of
        $560,502, or $0.01 per share (basic and diluted), in the second quarter
        of 2009, and compared to a net loss of $701,619, or $0.02 per share
        (basic and diluted) in the third quarter of 2008.
    --  Cash flow from operations increased by $1,407,115 during the third
        quarter of 2009. These funds were used to pay down our line of credit
        balance by $945,792 and increase working capital. We had $1,725,641
        available for borrowing as of September 30, 2009, compared to $495,766
        available as of June 30, 2009.

    --  The DSC127 Phase II trial is over 50% enrolled and continues to be on
        track for the announcement of clinical results within the third quarter
        of 2010.

Edward Quilty, CEO, commented, "We are pleased to announce that we achieved profitability in the third quarter - the culmination of three straight quarters of steady improvement."

"Our sales team has done an outstanding job of boosting our Advanced Wound Care product revenues. Sales of MEDIHONEY((R)) continue to grow at a rapid pace, and BIOGUARD(TM) sales have made a significant impact since the product was launched in June. Sales of XTRASORB(TM) and MedEfficiency Total Contact Cast systems also accelerated in the quarter."

"We generated significant cash flow during the third quarter, enabling us to substantially pay down our debt and increase our liquidity. It is important to note that our financial health has improved during a very challenging economic period. We are now well-positioned to take advantage of the opportunities that are beginning to emerge for us."

2009 Year-to-Date Results

    --  Net sales totaled $34,877,658 in the first nine months of 2009, a 7.3%
        decrease compared to $37,641,362 in the first nine months of 2008.
    --  A net loss of $1,178,978, or $0.03 per share (basic and diluted) was
        generated in the first nine months of 2009, compared to a net loss of
        $3,381,895, or $0.09 per share (basic and diluted), in the first nine
        months of 2008.
    --  Advanced Wound Care sales totaled $5,340,216 in the first nine months of
        2009, a 60% increase compared to $3,338,783 in the first nine months of
        2008.

    --  Consolidated gross profit margin increased to 31.0% during the first
        nine months of 2009, compared to 27.9% in the first nine months of 2008.

Quilty continued, "The past two years were a transitional period for our company. For example, we made a substantial investment in our Advanced Wound Care business knowing there would be a temporary negative impact on earnings. Taking the long-term view, we knew that developing higher margin proprietary brands would drive the overall value of the company. As expected, it has taken us several quarters to ramp up, but as our performance indicates, our efforts are beginning to pay off."

"During the first nine months of 2009, we experienced a decline in First Aid product sales. We believe this decline is temporary, as First Aid product sales tend to correlate with the general economy. On the positive side, our First Aid product margins improved by 5.3% due to improvement in our manufacturing."

Quilty concluded, "Moving forward, our goal is to continue to grow our top line sales and to improve our financial performance."

Conference Call/Webcast

Derma Science's management team will hold a conference call on Monday, November 16, 2009 to discuss the results at 11:00 am EST. Interested parties should call (866) 788-0546 (domestic) or (857) 350-1684 (international), with passcode 81416481 to access the call. You may also access this call via the Internet at:

http://phx.corporate-ir.net/playerlink.zhtml?c=107533&s=wm&e=2539678

For those who are unavailable to listen to the live broadcast, a replay will be available through December 16, 2009 and can be accessed by dialing 888-286-8010 (domestic), and 617-801-6888 (international). The passcode is 43541503.

For more news and information on Derma Sciences, Inc., please visit www.IRGnews.com/coi/DSCI where you can find the CEO's video, a fact sheet on the company, investor presentations, and more.

About Derma Sciences

Derma Sciences is a specialty medical device / pharmaceutical company focusing on advanced wound care. 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. Patient enrollment for the Phase II diabetic foot ulcer study is expected to be completed in the first quarter of 2010, with clinical results being reported within the third quarter of 2010.

For more information about Derma Sciences, Inc., visit http://www.dermasciences.com.

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.

    Contacts:  Derma Sciences, Inc.
               Edward J. Quilty
               Chairman and CEO
               equilty@dermasciences.com
               (609) 514- 4744

               The Investor Relations Group
               Jason Strominger  (Investor Relations)
               Michael Crawford (Investor Relations)
               Enrique Briz (Public Relations)
               212-825-3210

                    DERMA SCIENCES, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS


                                              September 30,  December 31,
                                                  2009         2008
    ASSETS                                     (Unaudited)
    ---------------------------------------------------------------------
    Current Assets
      Cash and cash equivalents                   $399,998     $391,038
      Accounts receivable, net                   3,743,290    3,892,523
      Inventories                               10,789,282   12,423,042
      Prepaid expenses and other
       current assets                              477,712      397,117
    ---------------------------------------------------------------------
    Total current assets                        15,410,282   17,103,720
    Cash - restricted                            2,029,563    2,014,422
    Equipment and improvements, net              3,873,046    3,977,853
    Goodwill                                     7,119,726    7,119,726
    Other intangible assets, net                 4,322,750    5,310,129
    Other assets, net                              579,216      681,472
    ---------------------------------------------------------------------
    Total Assets                               $33,334,583  $36,207,322
    ---------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    ---------------------------------------------------------------------
    Current Liabilities
      Line of credit borrowings                  2,835,589    3,446,605
      Current maturities of long-term
       debt                                      1,773,401    1,298,207
      Accounts payable                           2,902,190    3,614,764
      Accrued expenses and other
       current liabilities                       1,233,958    2,004,493
    ---------------------------------------------------------------------
    Total current liabilities                    8,745,138   10,364,069
    Long-term debt                               2,614,503    4,065,036
    Other long-term liabilities                    104,674       44,848
    Deferred tax liability                         363,141      340,871
    ---------------------------------------------------------------------
    Total Liabilities                           11,827,456   14,814,824
    ---------------------------------------------------------------------
    Shareholders' Equity
    Convertible preferred stock, $.01 par
     value; 11,750,000 shares authorized;
     issued and outstanding: 2,280,407 shares
     (liquidation preference of $4,210,231
     at September 30, 2009)                         22,804       22,804
    Common stock, $.01 par value;
     150,000,000 authorized; issued and
     outstanding:  40,315,743 at September 30,
     2009; 40,140,743 at December 31, 2008         403,157      401,407
    Additional paid-in capital                  40,709,352   40,027,645
    Accumulated other comprehensive
     income - cumulative translation
     adjustments                                 1,214,615      604,465
    Accumulated deficit                        (20,842,801) (19,663,823)
    ---------------------------------------------------------------------
    Total Shareholders' Equity                  21,507,127   21,392,498
    ---------------------------------------------------------------------
    Total Liabilities and
     Shareholders' Equity                      $33,334,583  $36,207,322
    ---------------------------------------------------------------------

                        DERMA SCIENCES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (UNAUDITED)


                                                    Three Months ended
                                                       September 30,
                                                 ------------------------
                                                     2009         2008
    ---------------------------------------------------------------------
    Net Sales                                    $12,882,425  $12,832,574
    Cost of sales                                  8,838,154    9,006,021
    ---------------------------------------------------------------------
    Gross Profit                                   4,044,271    3,826,553
    ---------------------------------------------------------------------
    Operating Expenses
      Selling, general and administrative          3,677,182    4,115,154
      Research and development                        70,412       84,891
    ---------------------------------------------------------------------
        Total operating expenses                   3,747,594    4,200,045
    ---------------------------------------------------------------------
    Operating income (loss)                          296,677     (373,492)
    ---------------------------------------------------------------------
    Other expense, net:
      Interest expense                               220,839      251,256
      Other income                                   (69,002)      (1,419)
    ---------------------------------------------------------------------
        Total other expense                          151,837      249,837
    ---------------------------------------------------------------------
    Income (loss) before provision for income
     taxes                                           144,840     (623,329)
    Provision for income taxes                         5,237       78,290
    ---------------------------------------------------------------------
    Net Income (Loss)                                139,603     (701,619)
    ---------------------------------------------------------------------
    Net income (loss) per common share - basic
     and diluted                                       $0.00       ($0.02)
    ---------------------------------------------------------------------
    Shares used in computing net income (loss)
     per common share - basic                     40,315,743   40,140,743
    ---------------------------------------------------------------------
    Shares used in computing net income (loss)
     per common share - diluted                   42,931,301   40,140,743
    ---------------------------------------------------------------------

                                                      Nine Months ended
                                                        September 30,
                                                  ------------------------
                                                      2009         2008
    ----------------------------------------------------------------------
    Net Sales                                     $34,877,658  $37,641,362
    Cost of sales                                  24,051,984   27,141,628
    ----------------------------------------------------------------------
    Gross Profit                                   10,825,674   10,499,734
    ----------------------------------------------------------------------
    Operating Expenses
      Selling, general and administrative          11,244,347   12,919,124
      Research and development                        288,338      239,199
    ----------------------------------------------------------------------
        Total operating expenses                   11,532,685   13,158,323
    ----------------------------------------------------------------------
    Operating  loss                                  (707,011)  (2,658,589)
    ----------------------------------------------------------------------
    Other expense, net:
      Interest expense                                631,909      748,743
      Other income                                   (112,791)     (21,897)
    ----------------------------------------------------------------------
        Total other expense                           519,118      726,846
    ----------------------------------------------------------------------
    Loss before benefit for income taxes           (1,226,129)  (3,385,435)
    Benefit for income taxes                          (47,151)      (3,540)
    ----------------------------------------------------------------------
    Net Loss                                       (1,178,978)  (3,381,895)
    ----------------------------------------------------------------------
    Net loss per common share - basic and diluted      ($0.03)      ($0.09)
    ----------------------------------------------------------------------
    Shares used in computing net loss per common
     share - basic and diluted                     40,231,128   38,091,726
    ----------------------------------------------------------------------

SOURCE Derma Sciences, Inc.

http://www.dermasciences.com

Expected next investor conference call information:
Conference Call Date: 11/16/2009
Conference Call Time (ET): 11:00 AM
Conference Call URL: http://phx.corporate-ir.net/playerlink.zhtml?c=107533&s=wm&e=2539678