News Release
Date: February 15, 2006

Comvita announces it has signed a long-term exclusive licensing deal with US-based manufacturer and supplier of wound care products, Derma Sciences Inc.

The licensing deal, which includes patents and other intellectual property, covers the use of Comvita’s medical grade manuka honey-based products for chronic wounds, skin tears, post-operative wounds and burns.

Under the agreement, Derma Sciences will receive exclusive manufacturing and marketing rights to Comvita’s woundcare products throughout the Americas (North, Central and South).

In addition, and subject only to due diligence and final documentation Comvita will purchase US$500,000 (666,666 shares at US$0.75) of Derma Sciences stock when Derma receives FDA 510K approval for the manuka honey-based products. Funds from the purchase of Derma shares will be used exclusively to launch the manuka honey products in the Americas.

Comvita will also have the option to purchase an additional US$500,000 shares at the same price for one year from the signing of the license and an additional option to purchase two million shares three years from the signing of the agreement at US$3 per share.

Comvita CEO Brett Hewlett says his company is working to a precise step-by-step plan for entry into global markets and the evaluation and selection of Derma Sciences has been carefully planned.

“The US has always been part of our plan for growing our medical category and with its manufacturing capabilities and established distribution network, Derma Sciences is the perfect partner for Comvita’s entry into this large and growing advanced wound care market.

“Derma is ideally positioned to capture the commercialisation potential of Comvita’s range of patented products,’” he says.

Comvita now has the UK, US and Australasia covered for its wound care category, and rapidly growing sales in other new markets.

Hewlett says the value of the Derma Sciences agreement is significant for Comvita shareholders.

“The share options provide a pathway for more direct involvement in the US market through Derma. Operationally there will be excellent opportunities for knowledge sharing and learning between the organisations, benefiting both Comvita’s global wound care position and Derma’s sales and marketing efforts in the Americas.”

Barry Wolfenson, Director of Marketing for Derma Sciences says exclusive access to Comvita’s products greatly enhances Derma’s product portfolio as it fills an unmet need for combination wound healing/antimicrobial products for use in all phases of wound healing.

“Fifty percent of all non-traumatic leg amputations in the United States are due to infected diabetic ulcers, with a five-year mortality rate ranging from 39% - 68%. With other wounds and burns there is a growing concern over antibiotic resistant super-bugs such as MRSA. A significant percentage of these infections prove fatal.

“Medical grade manuka honey products will provide clinicians with additional resources to help reduce the risk of infection while providing optimal environments for wound healing from the onset of the wound through to closure.”

President and CEO of Derma Sciences, Edward J. Quilty says Comvita has a strong reputation for utilising raw materials from natural sources and is highly regarded in the natural health products industry.

“The unique qualities found in manuka honey have been shown in clinical studies to be effective in the management of leg ulcers, pressure sores and post-operative conditions. It’s capable of treating some of the more antibiotic resistant strains of bacteria, a significant and growing problem for hospitals.”

Background
FDA 510K
Manufacturers, distributors, or importers are required to get FDA clearance before marketing certain types of new medical devices in the United States. In most cases, this clearance is obtained by submitting a file, called a 510(k), for FDA review. The 510(k) must demonstrate that the new device is “Substantially Equivalent” to a named device (the “predicate”) that has already been legally marketed in the United States for the same purpose.

Web sites
www.dermasciences.com

www.comvita.com

Derma Sciences Inc
Derma Sciences, Inc. is a fully integrated manufacturer, marketer and supplier of a complete line of products for wound and skin care. Its products can be broken down into five categories: Advanced Wound Care, Traditional Wound Care, Burn Care, Skin Care and Bathing, and Specialty Securement and Closure Devices. With three wholly owned and operated manufacturing facilities in St. Louis, Toronto, and China, Derma Sciences also offers contract manufacturing services for OEM or private label products.

December 19, 2005

Comvita has appointed Simon Pothecary as General Manager of its new UK subsidiary, Comvita UK.

Pothecary comes to Comvita from a role as a Category Director Cold, Flu & Allergy at Glaxo Smith Kline based in London. Prior to that he held several senior marketing roles in Glaxo Smith Kline and Pfizer Consumer Healthcare.

Comvita CEO Brett Hewlett says the company’s decision was to hire someone from inside the UK market in line with its strategy of having its own people on the ground in key markets.

“Simon’s appointment brings to Comvita considerable knowledge of the ‘Winter Over-The-Counter Category’ in the UK, which is one of our core strategic platforms,” Hewlett says.

“The relationships he has with UK retailers will be invaluable in assisting Comvita’s growth aspirations.”

The ‘Winter’ OTC Category in the UK is worth around £400 million annually. Comvita sees good market share growth opportunities as consumers increasingly seek products that provide natural based solutions to staying well.

Hewlett says it’s a very exiting time for Comvita in the UK as business is growing rapidly. Comvita recently acquired its UK distributor and took over operations December 1.

He says the UK and Europe should overtake New Zealand as Comvita’s largest market in 2006.

“This acquisition is a very good strategic opportunity to grow our business in the UK and Europe. We have a very clear strategy for this region and we are well placed to execute this over the next few years.”
END

News release
26 September 2005

Natural healthcare product company Comvita Limited has purchased its United Kingdom based distribution partner, New Zealand Natural Food Co Ltd.

The acquisition of New Zealand Natural Food Company is a significant step forward for Comvita as the UK export market currently accounts for a significant portion of total sales. The UK was Comvita’s first export market and for most of its history it has been the most important. Comvita’s total export sales account for over 60% of turnover.

Comvita consumer products provide the majority of New Zealand Natural Food’s current business through health, pharmacy and grocery outlets.

Located at Park Royal, the business is conveniently situated in a fast developing commercial area between Heathrow and Central London.

Sales through its new subsidiary are expected to be around GBP 2, 000,000 in 2005, and it will be earnings accretive from the first year.

Chairman Bill Bracks says, “We have built up a lot of expertise in running off shore-subsidiaries. We’ve also proven that applying our management and marketing expertise, and combining that with direct involvement in the market to be closer to our end customer, we grow our business more quickly. This is a very exciting step for Comvita.”

Ron and Pamela Steele, the former owners of New Zealand Natural Food Co have been working closely with Comvita and marketing the brand for 20 years in the United Kingdom. They well deserve congratulations for the way they have grown and developed the business." says Bracks.

Brett Hewlett Comvita’s chief executive is excited about the growth opportunities for Comvita, “it will enable Comvita to build on the offshore success Comvita has enjoyed with wholly owned subsidiaries in Australia, Japan and Taiwan” says Hewlett. Comvita takes over at a time when the Comvita brand is well recognised and accepted by the UK market as both having excellent products and an exceptional ethical reputation.

The purchase will take effect from 1 December 2005 and is for an undisclosed sum. The purchase will be funded by borrowings plus the issue of £50,000 in share capital.

Comvita’s consumer division manager, Scott Coulter, says Comvita has been working on the acquisition for two years.

“It fits exceptionally well with our growth strategy and it provides a platform to develop further into Europe, a market with some 450 million people."

Comvita was announced Food & Beverage Exporter of the Year at the recent New Zealand Trade & Enterprise Export Awards.
Ends

Mr Brett Hewlett
Chief Executive, Comvita Limited
Telephone: +64 (7) 533 1426 or 021 740 160