RACINE, WI--(Marketwire - March 8, 2011) - Pacific Sands, Inc. (PINKSHEETS: PFSD) (www.pacificsands.biz), which manufactures environmentally friendly, non-toxic liquid and powder cleaning, laundry, and water treatment products, announced record revenue for the fiscal six months ended December 2010. The company also believes it will have record third quarter and nine month results at March 31, 2011. Pacific Sands, which in December 2010 relocated the company's operations, distribution and manufacturing to a larger facility in Racine to accommodate growing demand for its products, has continued to book increased levels of new orders and has generated significant repeat private label orders from major retailers.

For the six months ended December 31, 2010, Pacific Sands announced net sales of $609,402, an increase of 17% over net sales of $519,423 for the six months ended December 31, 2009. This growth in sales was due to an increase in its Natural Choices private label offerings. The Company's gross margin decreased from 55% for the six months ended December 31, 2009 to 50% for the current fiscal year to date. This decrease reflects the significant increase in the company's sales to private label customers, which are sold at reduced margins. The Company recorded a net loss of $84,447 for the three months ended December 31, 2010, compared with a net loss of $918,323 for the three months ended December 31, 2009.

"We continue to experience strong sales from our direct Internet retail business, however, we have increased the focus of our business on building private label sales, which offer the opportunity for rapid and large volume increases while still generating strong gross margins," explained Michael Michie, CEO. "Our pipeline of orders from private label vendors continues to grow, underscoring the validity of our strategy. We anticipate a company-record nine months' revenues when our fiscal third quarter closes on March 31, 2011. Our new, expanded facility is running at full capacity for our production equipment.

"We recently received a lease commitment on favorable terms to upgrade that production capacity in both liquid and filling lines to meet this increasing demand. Our expanded space allows for this growth, and we anticipate having the manufacturing expansion upgrade in place by no later than the end of April.

"In addition to numerous orders generated by globally recognized retailers, we have received, and shipped, our first re-order from a new client, Roundy's, which has reported a positive response to our Natural Choices branded cleaning products.

"We also anticipate that within the next several weeks we will experience increasing orders for our environmentally friendly pool and spa treatment products, which are cost effective and in keeping with owners' interests in protecting the environment while still enjoying a modest and affordable personal luxury."

In the first two months of its March 31 fiscal third quarter, Pacific Sands has generated more than $300,000 in revenue, already exceeding the $262,742 in sales from fiscal third quarter 2010.

Interest expense for the three months ended December 31, 2010 was $44,589 compared to $17,354 for the three months ended December 31, 2009. The significant increase is due, in part, to increased interest recorded and paid upon the conversion of two convertible promissory notes.

"Further reducing and eliminating interest costs is a key goal for Pacific Sands for the remainder of this fiscal year. These are a significant drain on cash flow and earnings and negatively impact our goal of achieving long-term profitability," said Michie. "We have reduced the company's working capital deficit by 56% from June 30, 2010 to December 31, 2010, and we expect to eliminate this deficit by our fiscal year-end at June 30, 2011. Our total debt has declined by over $330,000, or more than 20%, in the first six months of this fiscal year, and that reduction has continued into this quarter."

"We are currently working to move all of our convertible debt into equity. With a 10 cent per share conversion price and our stock trading at over 12 cents per share (a three-year high was set on March 4, 2011), we feel this is a very attractive proposition for our convertible holders. We know that the 12% cost to carry this debt is a significant drain on working capital and is a challenge to our goal of making this a profitable fiscal year."

Michie concluded: "We are enthusiastic about the reception our products have received, and believe we now have an infrastructure established that will enable us to meet the growing demand for our eco-friendly products, and deliver revenue and earnings for our shareholders." 

About The Company
Pacific Sands, Inc. (www.pacificsandsinc.com) is a rapidly growing company that develops, markets and sells unique non-toxic, earth-, health- and child-friendly products for cleaning, personal hygiene, and water maintenance applications. The company's ecoone® Spa Treatment system was named a "Top 50 product for 2008" by Pool and Spa News. Wal-Mart's Innovation Network awarded one of the company's products the highest "Success Likelihood Score" ever granted in the program's 22-year history. Pacific Sands environmentally friendly products for cleaning, laundry and pool 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 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:
Michael Wynhoff
President
262-619-3261