Market Overview

PURE Bioscience Closes on $1.5 Million Financing and Provides Business Update

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PURE Bioscience, Inc. (OTCQB:
PURE
), creator of the patented non-toxic silver dihydrogen citrate (SDC)
antimicrobial, announced today that it has closed on an approximately
$1.5 million private placement with existing shareholders. The $1.5
million the company raised includes cancelled indebtedness held by the
Company's director, Tom Y. Lee, of approximately $504,000. 3,333,964
shares of common stock were issued at $0.45 per share. Proceeds of the
financing will be used for general working capital purposes.

The shares were offered and sold pursuant to Section 4(a)(2) of the
Securities Act of 1933, as amended. The shares have not been registered
under the Securities Act or state securities laws, and may not be
offered or sold in the United States absent registration with the
Securities and Exchange Commission or an applicable exemption from such
registration requirements. This press release does not constitute an
offer to sell, or a solicitation of an offer to purchase, the shares in
any jurisdiction in which such offer or solicitation would be unlawful.

MANAGEMENT/COST RESTRUCTURING

PURE also announced the retirement of Chairman David J. Pfanzelter.
Pfanzelter joined PURE in 2013 as part of the Company's focus on food
safety and committed to serve for five years. Pfanzelter has agreed to
the Board's request to act as a consultant to PURE for the next three
years. The office of Chairman will remain vacant.

Working towards its previously stated goal of achieving cash flow
breakeven in calendar Q1 2019, PURE continues to implement meaningful
restructuring and cost reduction measures while pursuing immediate
revenue generating opportunities.

  • Board and management salaries and fees have been reduced, in some
    cases by 50%.
  • Material reductions are being made in outside services costs.
  • Sales and marketing expenses not directly related to new customer
    acquisitions and revenue growth are being eliminated.

As a result of these initiatives, we estimate the annual revenue run
rate required to reach cash flow breakeven is now approximately $6.0
million (down from the $7.0 million previously projected).

BUSINESS INITIATIVES + REVENUE MOMENTUM

PURE Control® – Produce Update:

Taylor Farms, North America's largest supplier of salads and fresh-cut
vegetables, has combined PURE Control as a pre-treatment with its
SmartWash® wash system and launched SmartWash Boost as a game-changing
antimicrobial treatment for produce. In 3+ years of Taylor's rigorous
testing, results show SmartWash Boost consistently demonstrated superior
incremental pathogen reduction and risk mitigation when compared with
products presently on the market.

  • Taylor Farms recently began sales and marketing of the solution to its
    key foodservice and retail customers: https://youtu.be/tZ0tLy4DKOs.

Eight additional produce processors also are testing or evaluating PURE
Control.

PURE® Hard Surface – Expanding Use:

Food Transport: Earlier this year, Sysco approved our new PURE Hard
Surface food transport sanitizing solution for use system wide in its
90+ operating companies.

  • We are currently in use in 18 of these operating companies, and have a
    goal of being in use in 50% of Sysco's system by the end of this
    calendar year.
  • When fully deployed, this represents a potential $2-3 million revenue
    stream to PURE.

Six additional distributors and processors also are testing or
evaluating PURE Hard Surface.

Processing/Manufacturing: Sales to processors and manufacturers continue
to build.

  • Existing customers, like Taylor Farms, Del Monte, and Unilever are
    expanding applications and increasing usage rates.
  • We are adding new customers at the rate of 4+ per month.
  • Developing new market - we have identified a need, and developed
    applications and protocols, for use in poultry breeder barns and
    hatcheries, and are beginning testing with two leading companies.

Restaurants:

  • We have rolled out system wide to all 210 locations of The Cheesecake
    Factory.
  • We are in final testing/evaluation with two additional national casual
    dining chains.

Hank
R. Lambert, CEO of PURE
, said, "First and foremost, on behalf of our
entire Board and management team, I want to thank Dave for his numerous
and valuable contributions, insights and guidance in his role as our
Chairman. We look forward to an orderly transition and to reaping the
benefits of Dave's expertise for the next several years.

"We are pleased that this month, Taylor Farms has begun marketing
SmartWash Boost to its foodservice and retail customers. As Taylor gains
adoption, we believe these PURE Control sales will help contribute
revenues to PURE of approximately $1 million per plant/per year from
Taylor's 14-plant nationwide network. As stated in the Taylor Farms
video (above), SmartWash Boost ‘…provides a virtual kill step' that
‘would have prevented' the recent romaine outbreak and ‘is the next
generation of prevention of outbreaks, period.' This is a strong
endorsement from the market leader, and we are proud to be partnered
with them."

Lambert continued, "It's important to note that, while we continue to
actively sell and market to new customers, from projections based on
only our existing customer base, we are confident that we can achieve
cash flow breakeven in calendar Q1 2019.

"Sales of PURE Hard Surface to manufacturers/processors continue to
build. Customers are expanding applications and we are adding plants and
new customers at a growing rate. We also continue to grow our restaurant
segment business," concluded Lambert.

About PURE Bioscience, Inc.

PURE Bioscience, Inc. is focused on developing and commercializing our
proprietary antimicrobial products primarily in the food safety arena --
providing solutions to the health and environmental challenges of
pathogen and hygienic control. Our technology platform is based on
patented stabilized ionic silver, and our initial products contain
silver dihydrogen citrate, or SDC. SDC is a broad-spectrum, non-toxic
antimicrobial agent, which offers 24-hour residual protection and
formulates well with other compounds. As a platform technology, SDC is
distinguished from existing products in the marketplace because of its
superior efficacy, reduced toxicity and it mitigates bacterial
resistance. PURE is headquartered in El Cajon, California (San Diego
metropolitan area). Additional information on PURE is available at www.purebio.com.

Forward-looking Statements

Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
Statements in this press release concerning the company's expectations,
plans, business outlook or future performance, and any other statements
concerning assumptions made or expectations as to any future events,
conditions, performance or other matters, are "forward-looking
statements." Forward-looking statements inherently involve risks and
uncertainties that could cause our actual results to differ materially
from any forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, the
Company's failure to implement or otherwise achieve the benefits of its
proposed business initiatives and plans; acceptance of the Company's
current and future products and services in the marketplace, including
the Company's ability to convert successful evaluations and tests for
PURE Control into customer orders and customers continuing to place
product orders as expected and to expand their use of the Company's
products; the Company's ability to raise the funding required to support
its continued operations and the implementation of its business plan;
the ability of the Company to develop effective new products and receive
required regulatory approvals for such products, including the required
data and regulatory approvals required to use its SDC-based technology
as a direct food contact processing aid in raw meat processing and to
expand its use in OLR poultry processing; competitive factors, including
customer acceptance of the Company's SDC-based products that are
typically more expensive than existing treatment chemicals; dependence
upon third-party vendors, including to manufacture its products; and
other risks detailed in the Company's periodic report filings with the
Securities and Exchange Commission (the SEC), including its Form 10-K
for the fiscal year ended July 31, 2017 and Form 10-Q for the third
fiscal quarter ended April 30, 2018. You should not place undue reliance
on these forward-looking statements, which speak only as of the date of
this press release. 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.

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