Pacific Sands Files 10-QSB: 1st Quarter Sales Up 50%, Gross Profits Up 65% Expenses Down 50%

RACINE, WI--(Marketwire - November 20, 2007) - Pacific Sands, Inc. (OTCBB: PFSD) is pleased to announce the company's 13th consecutive quarter of same quarter sales growth.

RESULTS OF OPERATIONS:

(for the complete filing, please visit our website at www.pacificsandsinc.com, www.sec.gov, or call to request a printed copy)

Results for the three months ending September 30, 2007 compared to the three months ending September 30, 2006.

For the three months ending September 30, 2007 net sales were $179,807 an increase of 50% over net sales of $119,558 for the same period in 2006. The increase in sales is attributable to a number of factors including more retail outlets carrying the ecoONE® pool and spa treatment products, an increased sales cycle attributable to new marketing and sales initiatives and an increase in direct Internet retail sales, particularly of the company's All-Purpose Garden Hose Filter.

Cost of Goods Sold was $62,863 compared to $65,313 for the same period the previous fiscal year. The decrease in cost of goods sold was due, in part to a decrease in the amount of lower-profit sale of promotional materials to the company's OEM spa manufacturer partner during the period as well as increased efficiencies.

Gross profits for the three months ending September 30, 2006 were $116,944 or 65% compared to $54,245 or 46% for the same period the previous fiscal year. The significant increase in gross profit is a sharp increase in overall sales, coupled with a decrease in the amount of lower-profit sale of promotional materials to the company's OEM spa manufacturer partner. It is anticipated that the sale of those lower-profit promotional goods will concentrate in the up-coming quarter.

For the three months ending September 30, 2006, selling and general administrative expenses were down 50% $167,806 compared to $334,398 for the three months ending September 30, 2006. During the three months ending September 30, 2006, the Company incurred a charge of $134,211 for stock based compensation in the form of options as well as a charge of $35,160 for stock based compensation in the form of restricted stock to its officers. During the three months ended September 30, 2007, the Company's stock based compensation to officers and directors totaled $5,400. Other selling and general administrative cost remained relatively consistent for the three months ended September 30, 2007 as compared to the three months ended September 30, 2006.

Interest expense for the three months ended September 30, 2007 was $2,967 as compared to $11,931 for the same period in fiscal 2007. The decrease is attributed to the reduction of five capital lease obligations for which the Company makes monthly payments thus reducing the principal owed.

LIQUIDITY AND CAPITAL RESOURCES

Management believes that the Company is positioned for sales growth but will require additional funding to continue operations. The Company's ability to achieve its objectives is dependent on its ability to sustain and enhance its current revenue stream and to continue to raise funds through loans, credit and the private placement of restricted securities until such time as the Company sustains fiscal profitability. To date, the Company has funded operations and expansion through a combination of revenues from the sale of its products, established credit with vendors, deferred salaries and the sale of rule 144 stock through private placement. The Company's failure to continue to raise adequate financing to fund planned expansion may jeopardize its plans for growth.

Additionally, the Board of Directors has instructed the President (Mr. Wynhoff) to begin the process of evaluating certain profitable companies and/or enterprises with similar or complimentary business models as potential acquisition candidates in order to accelerate the growth of Pacific Sands and enhance its revenue stream and shareholder value.

At September 30, 2007, the Company had $253,466 and total assets for fiscal year 2007 were $289,119. Cash and cash equivalents totaled $2,805 on September 30, 2007.

Current liabilities at September 30, 2007 were $591,968 of which approximately $252,000 is deferred compensation due to two of the Company's officers and another related party. Current liabilities also include amounts owed on two lines of credit, one being a bank line of credit with Chase Bank for approximately $96,000 and the other is with Dell for approximately $6,000.

Net cash used in operating activities during the three months ended September 30, 2007 was $99,122 compared to net cash provided by operations of $1,271 for the three months ended September 30, 2006. The decrease in net cash from operations comes from an increase in accounts receivable as the result of higher sales volume, and a decrease in accounts payable and accrued expenses. The Company used proceeds from its bank line of credit to pay down trade payables and accrued expenses.

The Company did not use any in investing activities for the three months ended September 30, 2007. For the same period last fiscal year, the Company purchased capital assets in the amount of $4,365, representing the only use of cash for investing activities.

Net cash provided by financing activities was $87,958 and $546 for the three months ended September 30, 2007 and 2006, respectively. In July 2007, the Company executed a bank line of credit for $100,000. At September 30, 2007 the Company had a balance due of approximately $96,000. The proceeds were used primarily to fund operations. Additionally, the Company received $20,000 by issuing 200,000 shares of its common stock to an investor.

The Company's ability to achieve its objectives is dependent on its ability to sustain and enhance its revenue stream and to continue to raise funds through loans, credit and the private placement of restricted securities until such time as the Company achieves profitability. To date, management has been successful in raising cash on an as-needed basis for the continued operations of the Company. There is no guarantee that management will be able to continue to raise needed cash in this fashion.

The Company has no material commitments for capital expenditures at this time. The Company has no "off balance sheet" source of liquidity arrangements.

The Company presently employees six full time and three part time employees.

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® pool, spa and household cleaning product lines deliver earth, health and kid-safer alternatives. More information is available at www.pacificsands.biz and our newly-created e-commerce site: www.ecoONE.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