PFSD Reports Record Fourth Quarter and Annual 2007 Results -- Pacific Sands, Inc.

Company Shows Profitable 4th Quarter for Second Consecutive Year on 12th Consecutive Quarter of Same-Quarter Sales Growth


RACINE, WI--(Marketwire - October 12, 2007) - Pacific Sands, Inc. (OTCBB: PFSD), a leading provider of environmentally friendly pool and spa care products, is pleased to report the company's 12th quarter of same-quarter sales growth, a profitable fourth quarter and record annual sales.

Net sales for the year ended June 30, 2007 increased 37.5% to $596,774 compared to $433,918 for the previous fiscal year. Gross profit for the fiscal year ending June 30, 2007 was $366,050 up 46% as compared to $250,737 for the previous fiscal year. Gross profit percentage in fiscal 2007 increased to 61.3% compared to 57.8% in fiscal 2006.

Net sales for the three months ended June 30, 2007 increased 31.6% to $219,162, as compared to $166,531 for the same period last year. Net earnings for the quarter were $25,011 as compared to $38,463 for the same period last year.

The company's net loss for fiscal year 2007 was $551,097 (all of which was reported in the first three fiscal quarters), or $0.017 per share compared to $310,211, or $0.010 per share, for fiscal 2006. The increase in losses was primarily due to non-cash expenses, most notably the stock based compensation in the form of options issued to employees and directors of the Company. While options in OTC stocks have no actual cash market value, the adoption of SFAS 123(R) during fiscal 2006 requires the Company to measure the options using a fair market value methodology. The Company used the Black-Sholes method which utilizes, among other variables, stock price volatility to arrive at the underlying fair value of the option at the date of grant. The Black-Sholes calculation resulted in approximately $134,000 of stock based compensation expenses for the year. In addition, a portion of net loss increases was also attributable to higher accounting and legal fees incurred during the current fiscal year.

Mick Wynhoff, Pacific Sands CEO, stated, "Our strong fourth quarter capped another successful year for Pacific Sands. We increased momentum and generated consistent growth in revenues throughout fiscal year 2007, which we believe positions us well for the remainder of this actual year and beyond. I continue to be bullish on the prospects of the pool, spa and environment-friendly products industries, and the strength of our products in meeting the needs of consumers.

"As we continue to partner with leading manufacturers of pools and spas, we believe our market penetration will increase and we can expect to gain brand recognition within a very fragmented industry. We continue to improve our manufacturing process and streamline costs. The positive results from our initiatives confirm the validity of our strategic decisions and we expect to continue to improve on our future operating results," concluded Mr. Wynhoff.

For the complete 10-KSB filing please visit www.sec.gov or send an email request to michael.michie@pacificsandsinc.com to receive a printed copy.

About Pacific Sands

Pacific Sands, Inc., promoting earth, health, pet and kid-friendly chemistry solutions, is publicly traded on the NASDAQ OTCBB. The company's core ecoONE® chlorine free pool, spa and nontoxic household cleaning product lines deliver earth, health and kid-safe alternatives. More information: www.pacificsands.biz.

Safe Harbor Act Disclaimer

The statements contained in this release and statements that the company may make orally in connection with this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, since these forward-looking statements involve risks and uncertainties that could significantly and adversely impact the company's business. Therefore, actual outcomes and results may differ materially from those made in forward-looking statements.

Contact Information: Contact: Investor Relations Andrew Barwicki 516-662-9461