PURE Bioscience Posts Third Quarter Results.

Business Editors/Health/Medical Writers/High-Tech Writers

SAN DIEGO, Calif.--(BUSINESS WIRE)--June 15, 2004

PURE Bioscience (OTCBB:PURE) today reported revenues from continuing bioscience segment operations of approximately $49,800 for the quarter ended April 30, 2004, compared to revenues of $11,700 in the prior year quarter. The Company announced a narrowing loss from continuing operations of ($580,600), or ($0.04) per share, compared to a loss of ($883,000), or ($0.10) per share, in the prior year quarter.

For the nine month period ended April 30, 2004, revenues were approximately $143,900 with an operating loss of ($1,721,200), or ($0.16) per share, compared to revenues of $80,300 and an operating loss of ($2,445,900), or ($0.32) per share, for the same period in fiscal 2003. Approximately $473,700 of the loss in the current period was for non-cash items.

Although the Company continues to operate the water treatment division pending its sale, financial results related to the water treatment division are presented as discontinued operations. Revenues from the discontinued water treatment operation for the quarter ended April 30, 2004 were approximately $403,500, with operating income of $147,200 or $0.01 per share. Revenues from discontinued operations for the same period in 2003 were $632,900 with operating income of approximately $176,500 or $0.02 per share. At April 30, 2004 the Company had a backlog of $221,500 of water treatment products.

Revenues from the discontinued water treatment operation for the nine months ended April 30, 2004, were approximately $1,338,500 with an operating income of $411,900, or $0.03 per share, compared to revenues of $1,928,000 and an operating income of $519,700, or $0.05 per share, for the prior period.

In November 2003, PURE signed a definitive agreement to sell its water treatment business to Data Recovery Continuum Inc. (DRCI), a Delaware corporation based in California, for $2.75 million in cash plus up to $1.25 million in deferred payments over the next year. As noted in PURE's Form 10Q-SB filed with the Securities and Exchange Commission, the transaction has not yet closed, but DRCI has affirmed a willingness and intention to complete the transaction; therefore, PURE has granted the buyer an extension. In the meantime, PURE continues to operate the water treatment division and retain the profits from that division.

The transaction with DRCI also includes the sale of PURE's $2.0 million Note and Deed of Trust asset for face value. The principal and interest on this Note was due on or before June 12, 2004. Prior to the due date, the debtors requested a 64 day extension of the note and presented their in-progress financing plan for payment of the principal and interest. The Company reviewed the plan and granted the extension. Total combined cash proceeds from the transaction with DRCI will be $4.75 million to $6.0 million to PURE Bioscience. Shareholders approved the transaction at a special meeting of shareholders on April 14, 2004.

Confirmed Technology -- Immense Potential

PURE Bioscience's Axenohl(R) technologies lead today's global trend toward industry and consumer use of "green" products while providing competitive advantages in efficacy and safety. This new molecule, silver dihydrogen citrate (trade name Axenohl), is an electrolytically generated source of stabilized ionic silver that can serve as the basis for a broad range of products in diverse markets. Axenohl liquid is colorless, odorless, tasteless, non-caustic and formulates well with other compounds. Axenohl-based antimicrobial technology is distinguished from competitors in the marketplace because of its superior efficacy combined with reduced toxicity. PURE currently has Environmental Protection Agency (EPA) registration for its 2400-parts per million (ppm) technical grade concentrate as well as for its Axen(R) and Axen(R)30 hard surface disinfectant products for commercial, industrial and consumer applications. The Company plans to register several new products with the EPA this year.

PURE's Form 10-QSB outlines recent progress in the execution of its business strategy to continue aggressive development and marketing of its Axenohl antimicrobial technology.

In June 2004, PURE obtained EPA approval to expand claims made for its Axen30 hard surface disinfectant to include use on hard surfaces in childcare facilities. The EPA previously approved Axen30 for disinfection of hard surfaces including those in restaurants, homes and medical facilities. Expanded use claims for Axen30 disinfectant now feature children's toys, toy boxes, play tables and activity centers, jungle gyms, playpens, child car seats, strollers and diaper changing tables. The EPA's approval of such sensitive use sites emphasizes the "least-toxic" characteristics of Axen30 while expanding its versatility in the professional and consumer disinfection markets. The new claims open potential key market opportunities for PURE as its distributors position to penetrate the childcare segment which includes daycare centers, preschools, schools, gymnasiums and children's activity centers.

In addition to EPA approved uses of Axenohl technology, PURE, in conjunction with Therapeutics Inc., is pursuing the development and commercialization of Food and Drug Administration (FDA) regulated silver dihydrogen citrate based healthcare products. Initial investigations show that silver dihydrogen citrate's broad spectrum of effectiveness combined with its low toxicity and low potential to induce bacterial resistance may provide important therapeutic advances in the treatment of a number of medical diseases and conditions. In May 2004, PURE announced that Therapeutics Inc. has identified several potential Axenohl based women's health products as the first group of FDA regulated products using PURE's Axenohl silver dihydrogen citrate (SDC) antimicrobial technology for which it intends to pursue FDA approval.

In order to protect its rapidly developing suite of intellectual property, PURE recently filed an additional United States patent covering multiple potential uses for its Axenohl technology, including the treatment of specific types of bacteria, fungus and viruses as well as medical treatment and the preservation of consumable and non-consumable products. The additional Disinfectant and Method of Use patent application was filed in May 2004 and is the seventh Axenohl related patent application filed in the United States covering inventive aspects of manufacturing, composition and formulations of PURE's Axenohl technology. PURE has already obtained two U.S. patents related to the Axenohl technology: U.S. Patent 6,197,814 for the original Axenohl disinfectant and method of making and Patent 6,583,176, covering the Axenohl aqueous disinfectant in combination with ethyl alcohol. In addition, PURE has received national patents in Australia and New Zealand as well as regional patents in the Eurasian and OAPI regions of the world. National patent applications are pending in Brazil, Canada, China, Japan and Mexico as well as the European and the ARIPO regions of the world. The Axenohl International Patent Application was published by the World Intellectual Property Organization (www.wipo.org) on April 22, 1999 under publication Number WO 99/18790.

About PURE Bioscience

PURE Bioscience (PURE) develops and markets technology-based products in the bioscience and water treatment sectors to provide non-toxic solutions to global health challenges. PURE's proprietary high efficacy/low toxicity bioscience technologies, including its Axenohl(R) antimicrobials and Triglycylboride(TM) pesticides, represent innovative advances in diverse markets. PURE is currently America's leader in pharmaceutical water purification with its Fillmaster(R) equipment, and the Company has expanded into residential water treatment with its Nutripure(R) water filtration systems. PURE Bioscience is headquartered in El Cajon, Calif. (San Diego metropolitan area) and its common stock is listed on the OTC Bulletin Board under the symbol "PURE." Incorporated in 1992, PURE Bioscience was formerly named Innovative Medical Services.

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.