PURE Bioscience Reports Second Quarter Financial Results

Conference Call Begins Today at 4:30 p.m. Eastern Time

PURE Bioscience (NASDAQ:PURE), creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today reported product revenues for the fiscal second quarter ended January 31, 2010 of $327,000, up from product revenues of $34,800 in the same quarter of the prior fiscal year. The Company reported a net loss of $1,766,200 or $(0.05) per share for the current quarter, improved from a net loss of $2,219,800 or $(0.07) per share in the second fiscal quarter last year.

Product revenues for the six months ended January 31, 2010 were $548,900, compared with product revenues of $145,400 in the same period of the previous year. The Company reported a net loss of $3,477,400 or $(0.10) per share for the first half of fiscal year 2010, compared with a net loss of $3,825,100 or $(0.13) per share in the same period last year. In the three and six month periods of fiscal year 2009, the Company also recorded licensing revenue of $250,000.

As of January 31, 2010, the Company had cash and cash equivalents of $4,004,800.

"We made important progress on a number of fronts during the second quarter and subsequent weeks," said Michael L. Krall, President and CEO of PURE Bioscience. "Most importantly, we received approval to sell our new product IV-7 Ultimate Germ Defenseâ„¢ in New York and California, giving us clearance in all 50 states. As a result, we commenced the product launch with our marketing partner Richmont Sciences at the beginning of March.

"Richmont is initially targeting the institutional, janitorial and sanitation markets, and was able to develop several channels into those markets while we awaited final regulatory approvals," said Mr. Krall. "At the time of launch, several distributors and marketing reps were ready to introduce the product to their customers, and a dedicated website – www.IV-7.net – to support the marketing effort with product and technology information is now available.

"Progress by our other distribution partners is reflected in our second quarter results. Specifically, Harmony Bioscience continued to penetrate the Asian market and increase our international presence; and Biotech Medical received widespread positive exposure for its SDC-based brand SpectraSan 24 as Dr. Bob Arnot released a white paper titled 'Touch Surfaces; The Silent Threat,' which warns that hard surfaces have emerged as a key source of bacterial and viral infections."

Mr. Krall continued, "Following last year's success in obtaining general approval from the EPA for SDC's use on food contact surfaces, we are in the process of obtaining product registration at the federal level for our food contact surface sanitizer, and expect to have clearance in the current fiscal quarter. Subsequently, we will begin the process of gaining state-by-state approvals, which we believe will take four to six months. Having a claim for sanitizing food contact surfaces will significantly expand our addressable market and further differentiate SDC from competing technologies.

"During the second quarter, we were proud to partner with CareFusion and assist disaster relief efforts in Haiti by shipping 200,000 two-ounce bottles of IV-7 Ultimate Germ Defense to Project Hope for use as a water purifier. The donation was enough to treat up to 40 million gallons of water, providing a viable solution until local water systems are restored," he concluded.

Conference Call

The Company will host a conference call today beginning at 4:30 p.m. Eastern time to review and discuss the financial results and its business outlook, and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8033 (domestic) or 201-689-8033 (international) a few minutes before the call start time. The call is being webcast and can be accessed at www.purebio.com. Investors can also access the webcast at www.InvestorCalendar.com. A replay of the conference call will be accessible through June 11, 2010 by dialing 877-660-6853 (domestic) or 201-612-7415 (international) and entering the Account #286 and the Conference ID #346416.

About PURE Bioscience

PURE Bioscience develops and markets technology-based bioscience products that provide solutions to numerous global health challenges, including methicillin-resistant Staphylococcus aureus (MRSA), or staph infection. PURE's proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate-based antimicrobials, represent innovative advances in diverse markets and lead today's global trend toward industry and consumer use of "green" products while providing competitive advantages in efficacy and safety. Patented SDC is an electrolytically generated source of stabilized ionic silver which formulates well with other compounds. As a platform technology, SDC is distinguished from competitors in the marketplace because of its superior efficacy, reduced toxicity and the inability of bacteria to form a resistance to it. PURE is headquartered in El Cajon, California (San Diego metropolitan area). Additional information on PURE is available at www.purebio.com.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company's current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

PURE Bioscience
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Â	Â					Â				Â				Â	Â				Â
							For the Six Months Ended									For the Three Months Ended
							January 31,									January 31,
							Â	2010	Â		Â	2009	Â			Â	2010	Â		Â	2009	Â
	REVENUES FROM PRODUCT SALES
																				Â
	Net revenues						$	548,852			$	145,382				$	326,981			$	34,762
	Cost of sales						Â	193,032	Â		Â	70,634	Â			Â	112,875	Â		Â	10,822	Â
																				Â
	Gross profit						Â	355,820	Â		Â	74,748	Â			Â	214,106	Â		Â	23,940	Â
																				Â
	OTHER REVENUES
																				Â
	Revenue from license agreements							-				250,000					-				250,000
	Cost of other revenue						Â	-	Â		Â	-	Â			Â	-	Â		Â	-	Â
	Gross Profit						Â	-	Â		Â	250,000	Â			Â	-	Â		Â	250,000	Â
		Total gross profit					Â	355,820	Â		Â	324,748	Â			Â	214,106	Â		Â	273,940	Â
																				Â
																				Â
	Selling expenses							446,776				337,131					226,838				185,938
	General and administrative expenses							2,604,883				3,120,782					1,420,304				1,858,348
	Research and development						Â	909,693	Â		Â	740,953	Â			Â	451,825	Â		Â	453,991	Â
																				Â
	Total operating expenses						Â	3,961,352	Â		Â	4,198,866	Â			Â	2,098,967	Â		Â	2,498,277	Â
																				Â
	Loss from operations						Â	(3,605,532	)		Â	(3,874,118	)			Â	(1,884,861	)		Â	(2,224,337	)
																				Â
	Other income and (expense):
		Interest income						18,174				10,263					8,698				1,500
		Other					Â	110,000	Â		Â	38,789	Â			Â	110,000	Â		Â	3,087	Â
																				Â
	Total other income (expense)						Â	128,174	Â		Â	49,052	Â			Â	118,698	Â		Â	4,587	Â
																				Â
	Net loss before income taxes							(3,477,358	)			(3,825,066	)				(1,766,163	)			(2,219,750	)
	Income tax provision						Â	-	Â		Â	-	Â			Â	-	Â		Â	-	Â
																				Â
	Net loss						$	(3,477,358	)		$	(3,825,066	)			$	(1,766,163	)		$	(2,219,750	)
																				Â
	Net loss per common share, basic and diluted						$	(0.10	)		$	(0.13	)			$	(0.05	)		$	(0.07	)
																				Â
	Weighted average common shares used in
	computing basic and diluted net loss per common share						Â	33,991,693	Â		Â	29,896,168	Â			Â	34,529,176	Â		Â	30,124,247	Â
																						Â

PURE Bioscience

CONSOLIDATED BALANCE SHEETS

Â

Â

Â

Â

(Unaudited)

Â

Â

January 31,

July 31,

Â

2010

Â

Â

2009

Â

ASSETS

Current Assets

Cash and cash equivalents

$

4,004,754

$

4,213,744

Accounts receivable, net of allowance for doubtful accounts

of $0 at January 31, 2010 and $0 at July 31, 2009

136,083

143,031

Inventories, net

573,137

421,655

Prepaid expenses

Â

156,113

Â

Â

69,317

Â

Â

Total current assets

4,870,087

4,847,747

Â

Property, plant and equipment, net

909,793

856,504

Â

Patents

Â

1,924,042

Â

Â

1,944,701

Â

Â

Total assets

$

7,703,922

Â

$

7,648,952

Â

Â

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts payable

$

347,032

$

368,418

Accrued liabilities

214,882

192,348

Customer deposits

9,400

-

Taxes payable

Â

-

Â

Â

2,400

Â

Â

Total current liabilities

571,314

563,166

Â

Deferred rent

Â

19,150

Â

Â

19,351

Â

Â

Total liabilities

590,464

582,517

Â

Stockholders' Equity

Preferred Stock, no par value:

5,000,000 shares authorized, no shares issued

-

-

Class A common stock, no par value:

50,000,000 shares authorized

34,848,808 issued and outstanding at January 31, 2010, and

32,307,966 issued and outstanding at July 31, 2009

40,624,255

38,498,904

Additional Paid-In Capital

5,139,983

4,566,024

Warrants:

2,229,906 issued and outstanding at January 31, 2010, and

1,411,725 issued and outstanding at July 31,2009

3,326,753

2,501,682

Accumulated deficit

Â

(41,977,533

)

Â

(38,500,175

)

Â

Total stockholders' equity

Â

7,113,458

Â

Â

7,066,435

Â

Â

Total liabilities and stockholders' equity

$

7,703,922

Â

$

7,648,952

Â

Â

Contacts:

PURE Investor Contact:
Don Markley
Lippert/Heilshorn & Associates
[phone]
[e-mail]
or
PURE Media Contact:
Michael Gallo
Gutenberg Communications
[phone]
[e-mail]