"We are very encouraged with the increasing market enthusiasm for theNatural Choices(TM) 'home safe' cleaning and laundry products, as well asour 'low chem' ecoone® pool and spa water management systems," saidMichael Wynhoff, president. "Direct consumer response is growing, and wehave numerous retailers, distributors and marketing companies in thepipeline interested in selling our products as private label brands."

The company completed its expansion of its in-house manufacturingcapabilities to accommodate production requirements for its products. Thisinvestment, said Wynhoff, eliminates the need to outsource to contractmanufacturers and will result in lower manufacturing costs. For the threemonths ended September 30, 2008, cost of goods sold was $161,950 comparedto $62,863 for the same period in the previous fiscal year, while grossmargin decreased from 65% for the three months ended September 30, 2007 to54% for the current fiscal quarter.

These changes were primarily due to products from Natural Choices, whichPacific Sands acquired in February 2008. Prior to the acquisition, NaturalChoices manufactured the bulk of their liquid and powder cleaning andlaundry products through contract manufacturers, which added significantlyto their cost of manufacturing those products. Pacific Sands has madesignificant capital expenditures, including building an in-house powderfilling facility.

"We are very enthusiastic about the increased sales and the prospect ofimproved gross margins resulting from our manufacturing investment," notedWynhoff. "It will take two, possibly three quarters to fully realize theseeconomies of scale as we implement a full range of manufacturing processcontrol and procedures to maximize the efficiency of our new capabilities.We also have great flexibility to manufacture, fill and label the growingnumber of private label and brand extension products being sold throughnational retailers."

Wynhoff explained one of the major benefits of selling environmentallyfriendly products through private label and brand extension is theopportunity to reach a broader scope of consumers who are actively seekingnontoxic and earth-friendlier alternatives. For example, a customer lookingfor a 'mission specific' cleaning product, such as a deck and patiocleaner, is now more likely to choose the chlorine free alternative productthat's safer for kids, pets and plants. Our private label products giveexisting brands the ability to enhance their revenue base while makingresponsible use of their brand identity. The company currently sells toapproximately 30 private label and brand extension customers.

Increased manufacturing efficiency and significantly higher long-termvolumes will ultimately enable the company to maintain a cost-competitivemargin structure while generating increasing cash flow from operations,noted Wynhoff.

Pacific Sands (www.pacificsands.biz) has also recently gone live with fullyupdated websites: its website for its line of environmentally friendlypool and spa products (www.ecooneSpa.com), and its expanded site forNatural Choices and oxygenated cleaning products (www.ecogeeks.com) providesophisticated ordering and informational options to facilitate directpurchases by consumers and retailers. The packaging of its NaturalChoices(TM) branded cleaning products line is currently being redesignedand updated.

"While private label sales to major distributors offer the best opportunityfor rapid sales expansion, revenue from direct sales provides an importantfoundation for our products and enhances the company's overall visibility,"explained Wynhoff.

Sales, general & administrative expenses in the quarter increased to$239,680 versus $167,806 in first quarter 2008, primarily reflecting theaddition of key marketing employees and executives. The company has beenable to increase manufacturing output with minimal investment inmanufacturing employees.

"Based on sales trends, we anticipate adding up to three manufacturing andone administrative employee by spring to keep pace with increasing sales,"said Wynhoff. "We expect any increase in SG&A at that time will be morethan offset by resulting sales." Wynhoff added that management actuallyanticipates a slight decline in SG&A accompanied with a modest increase ingross margin percentage in fiscal quarters two and three due to increasedin-house manufacturing and the implementation of cost saving and efficiencyprograms.

The company's quarterly performance was impacted by a significantyear-over-year rise in interest expense related to additional financing formanufacturing expansion, the Natural Choices acquisition and ongoing cashrequirements. Wynhoff said that cash to maintain daily operations and fundmarketing and sales initiatives continues to be the company's primarychallenge, and is seeking favorable financing to manage operations whilenurturing sales growth.

"The economic conditions have had minimal impact on sales because peopleneed cleaning products and have maintained their commitment to choosingenvironmentally friendly alternatives," he explained. "However, thescarcity of funding liquidity and financing sources has come at a difficulttime for a company requiring operating and growth capital. We are pursuingnumerous options for interim and long-term growth financing."

Wynhoff concluded: "We remain very enthusiastic about our prospects,particularly with our private label and brand extension business. Ourprivate label and brand extension inquiries entering the sales funnel haveincreased to nearly ten unique projects per week in the last four to fivemonths. The quality of these leads has also improved dramatically and wenow have numerous potential 100,000 unit plus projects in the works."

About The Company

Pacific Sands, Inc. (www.pacificsandsinc.com) is a rapidly growing companythat develops, markets and sells unique, nontoxic, earth, health andchild-friendly products for cleaning, pet care and pool & spa watermaintenance applications. In 2008, the company's ecoone® Spa Treatmentsystem was cited by the pool and spa industry's Aqua Magazine as a'greener' alternative to conventional spa water care and as a "Top 50product for 2008" by Pool and Spa News. Citing the versatility of thecompany's core formula and referring to it as a "...hinge pin technology,"Wal-Mart's Innovation Network awarded one of the company's product thehighest "Success Likelihood Score" ever granted in that program's 22 yearhistory.

Pacific Sands environmentally friendly products for cleaning, laundry andpool and spa care are available at www.ecoone.biz and www.EcoGeeks.com.

Safe Harbor Act Disclaimer

The statements contained in this release and statements that the companymay make orally in connection with this release that are not historicalfacts are forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Actual results may differmaterially from those projected in the forward-looking statements, sincethese forward-looking statements involve risks and uncertainties that couldsignificantly and adversely impact the company's business. Therefore,actual outcomes and results may differ materially from those made inforward-looking statements.

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Contact:Tad GageExecutive Vice PresidentCapital Insight Partners312-466-7646tgage@cap-insight.com