SAN DIEGO, March 27 /PRNewswire-FirstCall/ -- PURE Bioscience (OTC:PURE) (BULLETIN BOARD: PURE) announced today that it has raised approximately $6.5 million in a private placement of its common stock. (Logo: http://www.newscom.com/cgi-bin/prnh/20060119/LATH060LOGO) Michael L. Krall, President and CEO of PURE Bioscience, stated, "This financing is an important milestone for PURE. Our company now has the financial resources to significantly accelerate our business strategy. We remain focused on our three-tiered plan to concurrently pursue 1) sales of our ready-to-use SDC-based hard surface disinfectant, 2) continued partnering with best of breed industry leaders to integrate SDC as an active antimicrobial ingredient in third party products, and 3) continued partnering with drug development and pharmaceutical companies to submit SDC-based products to the FDA, the first of which we expect to be filed later this year. This influx of capital reflects strong market confidence in our technology and our ability to capitalize on the immense potential of SDC." The funds were raised through the sale of 3,952,209 shares of unregistered common stock on March 24, 2006 to solely accredited investors at $1.65 per share. The purchase price per share represented approximately a 20% discount to the average closing bid price of the trailing five days ending March 17, 2006. The aggregate of shares sold represent approximately 21% of the prior outstanding shares. The net proceeds to the Company were approximately $5.96 million. A three-year Warrant to purchase 355,698 shares of common stock at $2.556 per share was issued to Taglich Brothers, Inc. as the placement agent. After other expenses associated with the private placement, total net proceeds are expected to be approximately $5.91 million. The net proceeds of the offering will be used for research and development, working capital and other general corporate purposes. The Company has agreed to file a registration statement with the Securities and Exchange Commission within thirty days of the closing for purposes of registering the resale of the common stock issued and sold in the private placement and the shares underlying the warrant issued to the placement agent. With respect to the unregistered sales made, the Company relied on Regulation D and Section 4(2) of the Securities Act of 1933, as amended. No advertising or general solicitation was employed in offering the securities. The securities were offered to sophisticated investors who were provided all of the current public information available on the Company. This press release does not and will not constitute an offer to sell these securities and it is not soliciting an offer to buy these securities. Silver Dihydrogen Citrate: A True Platform Technology PURE's flagship bioscience technology is an aqueous antimicrobial, silver dihydrogen citrate (SDC). A patented new molecule, SDC is an electrolytically generated source of stabilized ionic silver that can serve as the basis for a broad range of products in diverse markets. SDC liquid is colorless, odorless, tasteless, non-caustic and formulates well with other compounds. As a platform technology, SDC is distinguished from competitors in the marketplace because of its superior efficacy combined with reduced toxicity. PURE currently sells its first commercialized SDC product, Axen30(R) hard surface disinfectant, to commercial, industrial and consumer markets including restaurants, homes and medical facilities. The hard surface disinfection EPA registration includes a 30 second kill time on standard indicator bacteria, a 24 hour residual kill on standard indicator bacteria, a 2 minute kill time on some resistant strains of bacteria, 10 minute kill time on fungi, 30 second kill time on HIV Type I, and 10 minute kill time on other pathogenic viruses. These claims distinguish the efficacy of PURE's disinfectant from many of the leading commercial and consumer products currently on the market, while maintaining lower toxicity ratings. Based on the EPA toxicity categorization of antimicrobial products that ranges from Category I (high toxicity) down to Category IV, PURE's disinfectant is an EPA Category IV antimicrobial for which precautionary labeling statements are normally not required. This compares with Category II warning statements for most leading brands of disinfectant products. PURE has begun initial sales of SDC concentrate for integration as a preservative or active antimicrobial ingredient in existing third party products. PURE expects to realize revenues not only from raw material sales but also from licensing and/or royalties. Longer-term revenues are expected from the inclusion of SDC as a broad- spectrum antimicrobial for use in pharmaceutical, dental and veterinary products. PURE is initially pursuing approvals through the U.S. Food and Drug Administration (FDA) with its partner Therapeutics, Inc., which is funding and managing the testing and regulatory process for at least two potential FDA regulated SDC-based products. About PURE Bioscience PURE Bioscience (PURE) develops and markets technology-based bioscience products that provide non-toxic solutions to numerous global health challenges. PURE's proprietary high efficacy/low toxicity bioscience technologies, including its silver dihydrogen citrate-based antimicrobials and boric acid-based pesticides, represent innovative advances in diverse markets and lead today's global trend toward industry and consumer use of "green" products while providing competitive advantages in efficacy and safety. PURE Bioscience, headquartered in El Cajon, California, (San Diego metropolitan area), was incorporated in 1992. For additional information on PURE Bioscience, visit the Company's website: http://www.purebio.com/. 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. Media Contact: Jennifer Mitchell, Mentus 858-455-5500 Investor Contact: Terri MacInnis, Bibicoff & Associates, Inc. 818-379-8500 DATASOURCE: PURE Bioscience CONTACT: Media: Jennifer Mitchell of Mentus, +1-858-455-5500 or ; Investors: Terri MacInnis, Bibicoff & Associates, Inc., +1-818-379-8500 or , both for PURE Bioscience Web site: http://www.purebio.com/

Copyright