Pacific Sands, Inc. CEO Newsletter. 1 April, 2006

Farewell Henry Hernandez
The Pacific Sands Marketing Team Update

From the desk of Mick Wynhoff, President / CEO.

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Farewell Henry Hernandez
This week, Pacific Sands lost a dear friend, Henry Hernandez to a tragic car accident in Kenosha, WI. Henry has been my good friend for years and was our first official employee after the management transition in June of 2004. Despite his large and, to some, almost frightening presence, Henry was a delightful man with an infectious laugh and a gentle demeanor.

I've never known a more loyal friend than Henry. Looking back over family pictures from the last several years, I was amazed at how constant a companion he really was to our family. Whenever we needed help with anything, Henry was always there.

Henry was going to be helping out with some projects at our home over the next couple of weeks. My three year old daughter loved him and was delighted to hear that Henry was going to be around soon. The other day she woke up and the firt thing she said to me was “Is Henry coming today?” and I had to tell her the hardest words I've every spoken. “No Honey. Henry's not coming today.”

Henry Hernandez - 1966 - 2006

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Pacific Sands Marketing Team Update

I've gotten some questions recently about our contracting Rob Krug to head up our launch of the ecoONE Marketing Group that I thought I should address in this newsletter.

Despite the fact that Pacific Sands is, technically, a 'manufacturer,' I have always envisioned Pacific Sands as a marketing company. One can have the greatest products in the world (and we do) but, if you don't sell them, there's certainly no point in manufacturing them. A simple study of Pacific Sands itself is a perfect example of the power of that statement. The company has made the same, excellent products since 1997 but sales languished flat until the management transition of June of 2004. Since that time we have expanded same quarter sales in excess of 100% every single quarter through the simple expediency of dedicating the vast majority of the company's resources to creating a market for these products.

We have developed and implemented an aggressive 'demand side' marketing strategy that is now proven to work. We're now approximately only a year and a half into a three-year market saturation plan for the ecoONE pool and spa products that has already yielded a vast expansion in market share.

ecoONE has gone from being a boutique product sold over the Internet and a number of small retailers to an industry-recognized name, available in over 100 retail outlets and sold through the nation's largest pool and spa product distribution centers. The product is also being sold in an OEM configuration by one of the top spa manufactures in the world at the rate of 1,000 new users per month and is being aggressively marketed worldwide by the prestigious and swiftly growing Hawkeye Manufacturing as a recommended companion product to their Hawkeye and Barefoot spa lines. On top of that, EcoOne direct Internet sales now account for significantly more annual revenues to the company than the company achieved IN TOTAL prior to the management transition of 2004.

And we have accomplished this without a dedicated marketing department.

1 April 2006