Derma Sciences, Inc. to Restate 2005 and 2006 Financial Statements; No Material Impact on 2006 Earnings or Operating Cash Flows

PRINCETON, N.J.--(BUSINESS WIRE)--Derma Sciences, Inc. (OTCBB: DSCI), a manufacturer and full line supplier of wound and skin care products, today announced that on March 22, 2007, the Company’s management and the audit committee of the board of directors concluded that the Company’s consolidated financial statements for the year ended December 31, 2005 and for each of the quarters from June 30, 2005 through September 30, 2006, should not be relied upon because of errors in accounting for the Company’s exclusive distribution agreement in Canada, as described below.