Derma Sciences, Inc. (Nasdaq:DSCI), a tissue regeneration company focused on advanced wound and burn care, announces that National Government Services (NGS), a Medicare Administrative Contractor (MAC) for Part B serving States primarily in the Northeast and Midwest, and National MAC for Jurisdiction 6, has retired its local coverage determination (LCD) for cellular or tissue-based products (CTPs) effective September 1, 2016. As a result, the Company's AMNIOEXCEL ® Amniotic Allograft Membrane (AMNIOEXCEL ®) will be considered for coverage with appropriate documentation of medical necessity as a second-line therapy following standard wound care treatment. NGS serves approximately 24 million Medicare Part B beneficiaries primarily in Connecticut, Illinois, Maine, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont, and Wisconsin, and is one of eight MACs responsible for processing Medicare Part B claims. NGS also serves as the J6 MAC for Medicare Part A. In addition to processing claims, each MAC is also responsible for issuing LCDs that specify which healthcare products and services are reimbursable through the Medicare Fee-for-Service program in the regions under its jurisdiction. With this change AMNIOEXCEL ® is eligible for Medicare reimbursement in 47 states and the District of Columbia, covering 93% of Medicare beneficiaries. "We are very pleased with NGS' decision to retire its LCD for CTPs, commented Stephen T. Wills, Executive Chairman and Interim Principal Executive Officer of Derma Sciences. "NGS' jurisdiction includes several major metropolitan areas - such as New York, Boston and Chicago, which not only increases our market for AMNIOEXCEL ®, but permits much more efficient sales rep coverage. While we now have coverage over the bulk of the country, we continue to pursue an LCD from the remaining MAC for AMNIOEXCEL ® in order to ensure complete nationwide access to those who suffer from diabetic ulcers and other chronic wounds. Of note, AMNIOEXCEL ® is one of the only amniotic allografts with level I Randomized Control Trial evidence in diabetic foot ulcers, and we expect this data to continue to support our sales efforts." About AMNIOEXCEL ® AMNIOEXCEL ® Amniotic Allograft Membrane is a novel human placental-based tissue product. The membrane forms a protective covering over the wound while providing the key components found in human amnion including an intact ECM (extracellular matrix), cytokines and other growth factors. It easily integrates into the wound and helps provide the optimal environment to repair, reconstruct and replace wound tissue. About Derma Sciences, Inc. Derma Sciences is a tissue regeneration company focused on patent protected and proprietary advanced wound and burn care treatments. The Company's lead products include TCC-EZ®, a gold-standard total contact casting system for diabetic foot ulcers and its MEDIHONEY® product line, the leading brand of honey-based dressings for the management of wounds and burns. It is also engaged in the development and commercialization of novel proprietary regenerative products derived from placental/birth tissues for use in a broad range of clinical applications including the treatment of complex chronic wounds, acute wounds and localized areas of injury or inflammation, in addition to filling soft tissue defects or voids. These products are used in orthopedic, spinal and ocular surgical procedures, among others. The Company also offers a full product line of traditional dressings. For more information, please visit www.dermasciences.com. Forward-Looking Statements Statements contained in this news 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 that may be made in this news release or that are otherwise made by or on behalf of the Company. Factors that 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, 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 filings with the U.S. Securities and Exchange Commission.