PURE Bioscience Reports Year End Results

Conference Call Scheduled for Wednesday, October 14, 2009 at 1:30 p.m. PDT

• Press Release
• Source: PURE Bioscience
• On 4:30 pm EDT, Tuesday October 13, 2009

SAN DIEGO--(BUSINESS WIRE)--PURE Bioscience (NASDAQ: PURE), creator of the patented silver dihydrogen citrate (SDC) antimicrobial, today reported financial results for the fiscal year ended July 31, 2009 (“Fiscal 2009”).

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Year-End Results

Fiscal 2009 total revenues of $728,300, including licensing fees, declined by 51% from revenues of $1,487,500 in the year ended July 31, 2008 (“Fiscal 2008”). The decline in revenue is primarily due to $997,300 recorded in Fiscal 2008 for sales to two international distributors for whom the Company did not recognize revenue in Fiscal 2009. The net loss for Fiscal 2009 was $7,067,300, or $0.23 per share, as compared with a loss of $6,540,300, or $0.24 per share, in Fiscal 2008.

“At the beginning of Fiscal 2009, we expected to record more sales than those ultimately achieved,” stated Michael L. Krall, President and CEO of PURE Bioscience. “In addition to lower than anticipated revenues from U.S. customers, our international distributor opportunities have not yet materialized as expected due to issues affecting the distributors’ respective operations. Without a doubt, it has been a tough year, but in spite of the international economic hurdles we and our partners have faced, I see specific and significant business opportunities before us in both the near and long term, and I look forward to announcing new ventures over the coming months,” Krall continued.

Fiscal 2010 Outlook

“As a part of our maturing business plan,” said Krall, “we are beginning to implement a more aggressive approach to marketing SDC disinfectants. We believe this important initiative will hasten SDC’s acceptance in the marketplace during the current flu pandemic and beyond.” Krall noted that PURE has the manufacturing capacity to achieve SDC concentrate sales in excess of $250 million per year, and can quickly react not only in the U.S. but also abroad to supply its powerful disinfectant to governments, healthcare institutions and consumers seeking to effectively stem the spread of H1N1 and other pathogens.

“Hard surface disinfectant products comprise a significant, yet relatively small segment of SDC’s potential as a platform technology,” Krall continued, “and PURE remains committed to creating productive ventures in even larger markets including food processing, water treatment and agriculture.

“We believe that the launch of our SDC-based food contact surface sanitizer, anticipated for the current fiscal year, will have a substantially positive impact on financial results. One of the cornerstones for this new market was laid last October, when we expanded our intellectual property portfolio with the issuance of the food treatment patent by the US Patent and Trademark Office. This is particularly significant because this summer we also successfully concluded a six-year process with the EPA, which included petitioning the EPA to establish SDC as a food contact surface sanitizer and then obtaining EPA registration of our Axen50® product. The registration also accelerates our ongoing pursuit, through the USDA, of direct food contact applications of SDC-based formulations as antimicrobial processing aids.

“Our business development team is implementing aggressive proactive marketing programs for SDC and managing increasing inquiries about potential collaborations and product development projects. SDC is building momentum in multiple industries, and we plan to hire additional industry-specific professionals this year to support new and potential collaborations and other opportunities. During Fiscal 2009, we continued to advance product development with existing relationships and created new associations to explore the use of SDC as an active ingredient across multiple aspects of the technology’s platform. As a result, we expect to announce new contracts in the current fiscal year.”

Fiscal 2009 Review

At the close of Fiscal 2009, PURE announced that the Cleveland Clinic (one of the top hospitals in the world with one of the largest biomedical engineering departments in the U.S.) had become an equity partner in FTA Therapeutics LLC, PURE’s pharmaceutical development partner for SDC, and that the Cleveland Clinic will work with FTA on SDC product development.

“Also during the year, we fortified our relationship with Ciba (now BASF) with a new contract, and we added several new hard surface disinfectant distributors,” commented Krall. “BASF currently expects to receive regulatory approval in the next several months for SDC as a preservative in cosmetic and personal care applications in the European Union.”

Krall also pointed out that several distributors made strong showings at the ISSA/INTERCLEAN® trade show earlier this month. “I attended the show and was impressed by the attention garnered by our distributors for their respective SDC-based disinfectant products. The fact that SDC was both well-represented and well-received at the largest janitorial and sanitation trade show in North America demonstrates the progress made to establish SDC as the new standard in infection control.”

Krall commented, “SDC is proven effective against pathogens including SARS, MRSA and Avian Flu, and PURE is working tirelessly to position itself and its distributors to commercialize a powerful preventative weapon in the battle against the H1N1 swine flu pandemic.” SDC-based disinfectants are included on the list published in May by the EPA of antimicrobial products effective against the 2009 H1N1 flu strain, based on their effectiveness against other influenza A virus strains. Disinfectants containing PURE’s SDC antimicrobial also meet the recommendation by the CDC for infection control of H1N1 in both home and healthcare settings.

Conference Call

The Company will host a conference call on Wednesday, October 14, 2009 at 1:30 p.m. PDT to review and discuss the financial results for the fiscal year and its business outlook. Shareholders and other interested parties may participate in the conference call by dialing 877-407-8033 or (International) 201-689-8033 a few minutes before 1:30 p.m. PDT on October 14, 2009. The call is being webcast by Vcall and can be accessed at www.purebio.com. Investors can also access the webcast at www.InvestorCalendar.com. The webcast will be available for replay through January 15, 2009. A replay of the conference call will be accessible until December 14, 2009 by dialing 877-660-6853 or (International) 201-612-7415 and entering the Account #286 and the Conference ID #334821.

About PURE Bioscience

PURE Bioscience develops and markets technology-based bioscience products that provide solutions to numerous global health challenges, including Staph (MRSA). 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.

Investor Contact:
Bibicoff + MacInnis, Inc.
Terri MacInnis, Dir. of Investor Relations
818-379-8500
terri@bibimac.com
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