SOURCE: Pacific Sands, Inc.

February 15, 2006 15:02 ET

Pacific Sands Files Quarterly Report -- Revenues Up 354% and 296% Over Six and Three Month Periods Ending December 2006 vs. Same of Previous Fiscal Year

RACINE, WI -- (MARKET WIRE) -- February 15, 2006 -- Pacific Sands, Inc. (OTC BB: PFSD) is pleased to announce that the company has filed its 10Q-SB for the quarter ending December 31, 2005.

Investors are encouraged to read the the full content of the report which is available at various internet financial sites and will be posted later today at the company's website, www.pacificsandsinc.com.

Highlights:

The company had revenues of $130,582 and $59,348 for the six months and three months ending December 31, 2005, a net increase 354% and 296% respectively compared to $36,817 and $20,019 for the same periods the previous fiscal year. The increase in net sales is largely attributable to continuing orders of the EcoOne line of consumer pool and spa products from a retail and wholesale customer base largely developed in the third and fourth quarters of FY 2005 (January through June 2005).

Cost of sales for the six months and three months ending December 31, 2005 were $60,000 and $37,421 compared to $15,271 and $4,903 for the previous fiscal year. The increase was due largely to the addition of manufacturing employees and the expansion of our warehousing and manufacturing facility to meet increasing product demand.

Gross profits for the six months and three months ending December 31, 2005 were $70,582 and $21,927 compared to $21,546 and $15,116 for the same period of the previous fiscal year.

Selling and administrative expenses for the six months and three months were $302,409 and $147,554 compared to $203,127 and $81,276 the previous fiscal year. The increase in expenses is primarily attributable to a combination of additional employees, expanded office space and the addition of new production and accounting/inventory control technologies. The company also spent substantially more marketing and advertising dollars than in the previous fiscal year.

Management notes that selling and administrative expenses increased at a substantially lower rate than revenues due to increases in efficiencies an expanded market.

The company incurred a net loss of $237,196 for the six months ending December 31, 2005 compared to $181,691 for the same period the previous fiscal year. Negative cash flow from operations for the six months ending December 31, 2005 were $65,053 against a negative cash flow of $76,236 for the same period the previous fiscal year.

There was a net reduction in the basic and diluted weighted average shares outstanding for the six months and three months ending December 31, 2005 over the same periods the previous fiscal year. The reduction in total shares outstanding is partially responsible for an increase in net loss per share from $0.008 and $0.004 per share for the six and three months ending December 31, 2005 compared to a loss of $0.006 and $0.002 for the same periods the previous fiscal year.

Seasonal Business:

In the company's 10K-SB filing for the fiscal year ending June 30, 2005, management anticipated that revenues for fiscal year 2006 would concentrate in the 3rd and 4th quarters in a similar pattern to the 2005 fiscal year. Despite the increase in revenues for the 2nd quarter over the same quarter of the previous fiscal year, management believes that the bulk of the company's FY 2006 revenues will again be realized in the 3rd and 4th quarters.

Pacific Sands is primarily engaged in the manufacture, marketing and distribution of nontoxic pool and spa treatment systems. The primary "buying season" for these types of products in the wholesale market is January through May and May through August in the retail market. Additionally, expenses for this industry will concentrate in our second quarter as that is when new marketing materials are introduced and the bulk of the industry trade shows take place.

Management is taking steps to offset the seasonal nature of its business and revenue stream with the planned introduction of a line of household cleaning and pet care products in mid-2006.

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.

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