PURE Bioscience Reports Second Quarter Financial Results

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, 2011 of $58,400, compared with product revenues of $327,000 in the same quarter of the prior fiscal year. The Company reported a net loss of $2,479,600 or $(0.07) per share for the current quarter, compared with a net loss of $1,766,200 or $(0.05) per share in the second fiscal quarter last year. Also during the second quarter of fiscal year 2011, the Company recorded licensing revenue of $10,000.

Product revenues for the six months ended January 31, 2011 were $81,500, compared with product revenues of $548,900 in the same period of the previous year. The Company reported a net loss of $4,500,600 or $(0.12) per share for the first half of fiscal year 2011, compared with a net loss of $3,477,400 or $(0.10) per share in the same period last year. In the six month period of fiscal year 2011, the Company also recorded licensing revenue of $10,000.

As of January 31, 2011, the Company had cash and cash equivalents of $1,677,800.

Michael L. Krall, President and CEO of PURE Biosciences, said, "We are in a transition period during which quarterly revenues do not reflect the progress and growth of PURE. Although revenues are being realized more slowly than anticipated, the opportunities continue to grow as a result of our marketing efforts in the multiple sectors addressed by our patented and revolutionary SDC technology. We continue to hire key industry experts to increase our bandwidth to manage and service the many projects currently in progress. The adoption and sales cycle for our disruptive technology is frustratingly long, but even though our current projects and partners are taking longer than anticipated to reach the point of commercialization, all have moved forward this quarter and none have ceased development.

"During the quarter we obtained the final state approvals necessary to begin selling our SDC-based disinfectant/food contact surface sanitizer. We are pursuing opportunities with food processing, food service, restaurant and hospitality companies as well as with established distributors and brokers already serving those markets.

"Also during the quarter, we received a ten-year, $144 million commitment to purchase SDC-based products for distribution in Dubai and other areas of the Middle East. We have made the first shipment under the contract, but although we have product registrations from the municipality of Dubai for both our water treatment product and our disinfectant products, we now await approval for the actual product labels, which is a requirement for Dubai to receive the import. We expect the approvals in the coming weeks followed by additional shipments to Dubai under the contract.”

Krall concluded, "We are a much stronger company with a wider marketing reach than we were last year, or even last quarter, and we expect that by the end of our fiscal year we will begin to see the sales acceleration we’ve long expected.”

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 17, 2011 by dialing 877-660-6853 (domestic) or 201-612-7415 (international) and entering the Account #286 and the Conference ID # 368851.

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.