Derma Sciences announces dismissal of $27,000,000 anti-trust claim.

OLD FORGE, Pa.--(BUSINESS WIRE)--Oct. 18, 1995--DERMA SCIENCES, INC. (NASDAQ: DSCI) (BSE/PSE: DMS) today announced that Judge Herman J. Weber, United States District Court for the Southern District of Ohio, Western Division, dismissed with prejudice the $27,000,000 anti-trust claim filed by Morgan Paris, Inc. ("Morgan Paris") against the Company.

Morgan Paris, one of the Company's former master distributors, had filed a civil action against the Company in September 1994, alleging that the Company violated the Sherman Anti-Trust Act and the Ohio Valentine Act and that it breached the Master Distributorship Agreement between Morgan Paris and the Company. Contractual claims and the Company's counterclaims remain to be adjudicated.

John T. Borthwick, President and CEO of DERMA SCIENCES, INC., stated, "We have always considered Morgan Paris' anti-trust allegations (as well as its contractual claims) to be meritless. We are certainly pleased that the Court has, in summary fashion, concurred with our assessment of the anti-trust aspects of these proceedings. We anticipate a similar favorable result relative to Morgan Paris' remaining claims."

DERMA SCIENCES, INC. is engaged in the development, marketing and sale of primarily proprietary sprays, ointments and dressings for the management of certain chronic non-healing skin ulcerations such as pressure and venous ulcers, surgical incisions and burns. The Company markets its products through independent distributors, mainly to healthcare providers to the geriatric community such as nursing homes, similar extended care facilities, hospitals and home healthcare agencies throughout the United States. In addition, DERMA SCIENCES, INC. products are available in selected markets throughout the world through strategic alliances with local companies.

CONTACT: Derma Sciences Inc., Old Forge

John T. Borthwick, 717/457-1232

or

L.G. Zangani Inc.

Leonardo G. Zangani, 908/788-9660