Edgar Filing: INNOVATIVE MEDICAL SERVICES

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )

Filed by the Registrant Filed by a Party other than the Registrant
Check the appropriate box:

[ ] Preliminary Proxy Statement

[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2))

[X] Definitive Proxy Statement

[ ] Definitive Additional Materials

[ ] Soliciting Material Pursuant toss.240.14a-12

INNOVATIVE MEDICAL SERVICES
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(Name of Registrant as Specified In Its Charter)

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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

1) Title of each class of securities to which transaction applies:

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2) Aggregate number of securities to which transaction applies:

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3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):

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5) Total fee paid:

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Fee paid previously with preliminary materials.

Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.

1) Amount Previously Paid:

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2) Form, Schedule or Registration Statement No.:

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3) Filing Party:

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4) Date Filed:

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INNOVATIVE MEDICAL SERVICES
1725 Gillespie Way
El Cajon, California 92020
(619) 596-8600

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PROXY STATEMENT

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Notice of Annual Meeting of Shareholders
To Be Held September 26, 2003

TO THE SHAREHOLDERS OF INNOVATIVE MEDICAL SERVICES

NOTICE HEREBY IS GIVEN that the Annual Meeting of Shareholders of INNOVATIVE
MEDICAL SERVICES, a California corporation (the "Company"), will be held at the
Doubletree Hotel Mission Valley, 7450 Hazard Center Drive, San Diego, California
92108 on September 26, 2003, 10:30 a.m., Pacific Time, and at any and all
adjournments thereof, for the purpose of considering and acting upon the
following Proposals:

Proposal No. 1. ELECTION OF DIRECTORS

Proposal No. 2. APPROVAL OF AN AMENDMENT TO THE COMPANY'S ARTICLES OF
INCORPORATION TO CHANGE THE COMPANY NAME TO "PURE BIOSCIENCE"

This Annual Meeting is called as provided for by California law and the
Company's By-laws.

Only holders of the outstanding Common Stock of the Company of record at the
close of business on August 18, 2003 will be entitled to notice of and to vote
at the Meeting or at any adjournment or adjournments thereof.

All shareholders, whether or not they expect to attend the Annual Meeting of
Shareholders in person, are urged to sign and date the enclosed Proxy and return
it promptly in the enclosed postage-paid envelope which requires no additional
postage if mailed in the United States. The giving of a proxy will not affect
your right to vote in person if you attend the Meeting.

BY ORDER OF THE BOARD OF DIRECTORS

DENNIS ATCHLEY
SECRETARY

El Cajon, California
August 8, 2003

INNOVATIVE MEDICAL SERVICES
1725 Gillespie Way
El Cajon, California 92020
(619) 596-8600

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PROXY STATEMENT

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Notice of Annual Meeting of Shareholders
To Be Held September 26, 2003

GENERAL INFORMATION

The enclosed Proxy is solicited by and on behalf of the Board of Directors of
INNOVATIVE MEDICAL SERVICES, a California corporation (the "Company"), for use
at the Company's Annual Meeting of Shareholders to be held at the Doubletree
Hotel Mission Valley, 7450 Hazard Center Drive, San Diego, California 92108 on
September 26, 2003, at 10:30 a.m. Pacific Time, and at any adjournment thereof.
It is anticipated that this Proxy Statement and the accompanying Proxy will be
mailed to the Company's shareholders on or before August 26, 2003.

Any person signing and returning the enclosed Proxy may revoke it at any time
before it is voted by giving written notice of such revocation to the Company,
or by voting in person at the Meeting. The expense of soliciting proxies,
including the cost of preparing, assembling and mailing this proxy material to
shareholders, will be borne by the Company. It is anticipated that solicitations
of proxies for the Meeting will be made only by use of the mail; however, the
Company may use the services of its Directors, Officers and employees to solicit
proxies personally or by telephone without additional salary or compensation to
them. Brokerage houses, custodians, nominees and fiduciaries will be requested
to forward the proxy soliciting materials to the beneficial owners of the
Company's shares held of record by such persons, and the Company will reimburse
such persons for their reasonable out-of-pocket expenses incurred by them in
that connection.

All shares represented by valid proxies will be voted in accordance therewith at
the Meeting. Shares not voting as a result of a proxy marked to abstain will be
counted as part of total shares voting in order to determine whether or not a
quorum has been achieved at the Meeting. Shares registered in the name of a
broker-dealer or similar institution for beneficial owners to whom the
broker-dealer distributed notice of the Annual Meeting and proxy information and
which such beneficial owners have not returned proxies or otherwise instructed
the broker-dealer as to voting of their shares, will be counted as part of the
total shares voting in order to determine whether or not a quorum has been
achieved at the Meeting. Abstaining proxies and broker-dealer non-votes will not
be counted as part of the vote on any business at the Meeting on which the
shareholder has abstained.

The Company's Annual Report to Shareholders for the fiscal year ended July 31,
2002, along with subsequent Quarterly Reports, has been previously mailed or is
being mailed simultaneously to the Company's shareholders, but does not
constitute part of these proxy soliciting materials.

SHARES OUTSTANDING AND VOTING RIGHTS
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All voting rights are vested exclusively in the holders of the Company's Common
Stock with each common share entitled to one vote. Only shareholders of record
at the close of business on August 18, 2003 are entitled to notice of and to
vote at the Meeting or any adjournment thereof. On August 8, 2003, the Company
had 10,594,088 shares of its Common Stock outstanding, each of which is entitled
to one vote on all matters to be voted upon at the Meeting, including the
election of Directors. No fractional shares are presently outstanding. A
majority of the Company's outstanding voting stock represented in person or by
proxy shall constitute a quorum at the Meeting. The affirmative vote of a
majority of the votes cast, providing a quorum is present, is necessary to elect
the Directors. Cumulative voting in the election of Directors is permitted.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND OF MANAGEMENT
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The following table sets forth the number of shares of the Company's Common
Stock beneficially owned as of August 8, 2003 by individual directors and
executive officers and by all directors and executive officers of the Company as
a group. Based upon a review of the Company's shareholders list as of August 8,
2003, there are no other registered holders of five percent or more of the
Company's Common Stock. As of August 8, 2003 there were 10,594,088 shares
outstanding.

Name and Address of Common Stock Percentage of Shares
Beneficial Owner Title Ownership Outstanding (%)
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Dennis Atchley Secretary 243,860 (1) 2.30

Gene Auerbach Chief Operating Officer 175,000 (2) 1.65

Gregory Barnhill Director 425,000 (3) 4.01

Dennis Brovarone Director 506,483 (4) 4.78

Gary Brownell Treasurer, CFO/Director 450,321 (5) 4.25

Patrick Galuska Director 420,690 (6) 3.99

Michael L. Krall President, CEO/Chairman 1,353,560 (7) 12.78

Eugene Peiser Director 476,136 (8) 4.49

Donna Singer Executive VP, Director 403,356 (9) 3.80

Directors and Officers as a Group

(9 individuals) 4,454,406 (10) 42.05

(1) Includes presently exercisable options to acquire up to 200,000 shares.
(2) Includes presently exercisable options to acquire up to 150,000 shares.
(3) Includes presently exercisable options to acquire up to 250,000 shares.
(4) Includes presently exercisable options to acquire up to 435,000 shares.
(5) Includes presently exercisable options to acquire up to 400,000 shares.
(6) Includes presently exercisable options to acquire up to 350,000 shares.
(7) Includes presently exercisable options to acquire up to 731,250 shares.
(8) Includes presently exercisable options to acquire up to 400,000 shares.
(9) Includes presently exercisable options to acquire up to 375,000 shares.
(10) Includes presently exercisable options held by all of the above
officers and directors to acquire up to 2,814,250 shares.

MANAGEMENT

The executive officers and directors of the Company and their ages are as
follows:

Name Age Position
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Michael L. Krall 51 President, CEO, Chairman, Director
Gary Brownell, CPA 54 Treasurer, CFO, Director
Eugene Auerbach 58 Chief Operating Officer
Donna Singer 33 Executive Vice President, Director
Dennis Atchley, Esq. 50 Secretary
Gregory Barnhill 49 Director
Dennis Brovarone 47 Director
Patrick Galuska 44 Director
Eugene Peiser, PD 71 Director

The Directors serve until their successors are elected by the shareholders.
Vacancies on the Board of Directors may be filled by appointment of the majority
of the continuing directors. The executive officers serve at the discretion of
the Board of Directors except as subject to the employment agreement with Mr.
Krall.

Committees: Meetings of the Board

We have a Compensation/Administration Committee and an Audit Committee. We do
not have a separate Nominating Committee as this function is handled by the
entire Board of Directors. The Compensation/Administration Committee and the
Audit Committee were formed in 1995. Messrs. Barnhill, Brovarone, Galuska and
Peiser comprise the Compensation/Administration Committee and Messrs. Barnhill,
Brownell, Galuska and Peiser are the Audit Committee. The
Compensation/Administration Committee recommends to the Board the compensation
of executive officers and will serve as the Administrative Committee for the
Company's Stock Option Plans. The Audit Committee serves as a liaison between
the Board and the Company's auditor. The Compensation/Administration Committee
met once during the fiscal year ended July 31, 2002, and the Audit Committee met
once during the fiscal year ended July 31, 2002.

Our Board of Directors held five meetings during the fiscal year ended July 31,
2002, at which time all the then Directors were present or consented in writing
to the action taken at such meetings. No incumbent Director attended fewer than
100% of said meetings.

Audit Committee Report

The Audit Committee of the Board of Directors consists of three directors, the
majority of which are the Company's independent directors. The Audit Committee
operates under a written charter adopted by the Board of Directors, a copy of
which was included as an exhibit to the 2002 proxy statement. The Audit
Committee is responsible for overseeing the Company's financial reporting
process on behalf of the Board of Directors. Each year, the Audit Committee
recommends to the Board of Directors the selection or retention of the Company's
independent auditors.

Management is responsible for the Company's financial statements and the
financial reporting process, including internal controls. The independent
auditors are responsible for performing an independent audit of the Company's
consolidated financial statements in accordance with auditing standards
generally accepted in the United States and for issuing a report thereon. The
Audit Committee's responsibility is to monitor and oversee these processes.

In this context, the Audit Committee has met and held discussions with
management and Miller and McCollom, the Company's independent auditors.
Management represented to the Audit Committee that the Company's consolidated
financial statements were prepared in accordance with accounting principles
generally accepted in the United States, and the Audit Committee has reviewed
and discussed the consolidated financial statements with management and the
independent auditors. The Audit Committee discussed with Miller and McCollom the
matters required to be discussed by Statement on Auditing Standards No. 61
(Communications with Audit Committees). These matters included a discussion of
Miller and McCollom's judgments about the quality (not just the acceptability)
of the Company's accounting principles as applied to financial reporting.

Miller and McCollom also provided the Audit Committee with the written
disclosures and letter required by Independence Standards Board Standard No. 1.
(Independence Discussions with Audit Committees), and the Audit Committee
discussed with Miller and McCollom that firm's independence.

Based upon the Audit Committee's discussion with management and the independent
auditors and the Audit Committee's review of the representation of management
and the disclosures by the independent auditors to the Audit Committee, the
Audit Committee recommended to the Board of Directors that the Company's audited
financial statements be included in the Company's Annual Report on Form 10-KSB
for the fiscal year ended July 31, 2002, for filing with the U.S. Securities and
Exchange Commission. The Audit Committee has also recommended the retention of
Miller and McCollom as the Company's independent auditors for the fiscal year
ending July 31, 2003.

Audit Committee

Gary Brownell
Patrick Galuska
Eugene Peiser

Compliance with Section 16(a) of Securities Exchange Act of 1934
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To our knowledge, during the fiscal year ended July 31, 2002, our Directors and
Officers complied with all applicable Section 16(a) filing requirements. This
statement is based solely on a review of the copies of such reports furnished to
us by our Directors and Officers and their written representations that such
reports accurately reflect all reportable transactions.

Family Relationships
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There is no family relationship between any Director, executive or person
nominated or chosen by the Company to become a Director or executive officer.

EXECUTIVE COMPENSATION

Summary Compensation Table

The following table shows for the fiscal year ending July 31, 2002, the
compensation awarded or paid by the Company to its Chief Executive Officer and
any of the executive officers of the Company whose total salary and bonus
exceeded $100,000 during such year (The "Named Executive Officers"):

Michael L. Krall President/CEO| 2002| 144,000 | 0 |150,000 Common| 0 |
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Michael L. Krall President/CEO| 2001| 144,000 | 0 |50,000 Common | 0 |
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Michael L. Krall President/CEO| 2000| 144,000 | 0 |50,000 Common | 0 |
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No other executive officer earned more than $100,000 during the current fiscal
year.

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Option Grants in Last Fiscal Year
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Individual Grants
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Number of
Common Shares
Underlying
Options Granted % of Total Options Granted to Exercise Price Expiration
Name (#) Employees in Fiscal Year ($/Sh) Date
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Michael L. Krall President/CEO 50,000 7.0 2.10 11/08/06
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Michael L. Krall President/CEO 100,000 14.0 2.00 1/31/07
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Aggregated Option Exercises in Last Fiscal Year and Fiscal Year End
Option/Values

The following table sets forth the number and value of the unexercised options
held by each of the Named Executive Officers at July 31, 2002.

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Aggregate Option Exercises in Last Fiscal Year and FY-End Option Values
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Shares Value Number of Securities Underlying Value of Unexercised In-the Money
Acquired on Realized at Unexercised Options at FY-End (#) Options at FY-End ($)
Name Exercise (#) FY-End ($) Exercisable/Unexercisable Exercisable/Unexercisable
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Michael L. Krall 0 0 681,250 Common Shares/Exercisable 40,000/Exercisable (1)
President/CEO
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(1) Option value based on the difference between the exercise price of
unexercised options and the average closing price of $0.72 for the 30
trading days ending July 31, 2002.

Employment Agreements and Executive Compensation

In April 1996, the Board of Directors approved a five-year employment agreement
for Michael Krall, its President. Mr. Krall receives a salary of $144,000 per
year, an amount equal to 3% of Innovative Medical Services' net income before
taxes, if any, plus other benefits. The Board of Directors has extended Mr.
Krall's employment agreement for an additional year.

Compensation of Directors

Directors are entitled to receive $300 plus reimbursement for all out-of-pocket
expenses incurred for attendance at Board of Directors meetings.

OTHER ARRANGEMENTS

Individuals newly appointed as Executive Officers or as Directors, are granted
an option to purchase 100,000 shares of common stock at fair market value from
stock option plans previously approved by the shareholders. Upon each subsequent
anniversary thereof, each such Officer and Director will receive an option to
purchase 50,000 shares of common stock at fair market value.

Termination of Employment and Change of Control Arrangement

There is no compensatory plan or arrangement with respect to any individual
named above which results or will result from the resignation, retirement or any
other termination of employment with the Company, or from a change in the
control of the Company.

Transactions with Management

The Company did not enter into any transactions with Management during the
fiscal year ended July 31, 2002.

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PROPOSAL NO. 1. Election OF Directors

The Articles presently provide for a Board of Directors of not more than nine
(9) members. The number of Directors of the Company has been fixed at seven (7)
by the Company's Board of Directors. The Company's Board of Directors recommends
the election of Directors of the seven (7) nominees listed below to hold office
until the next Annual Meeting of Shareholders and until their successors are
elected and qualified or until their earlier death, resignation or removal. The
persons named as "proxies" in the enclosed form of Proxy, who have been
designated by Management, intend to vote for the seven (7) nominees for election
as Directors unless otherwise instructed in such proxy. If at the time of the
Meeting, any of the nominees named below should be unable to serve, which event
is not expected to occur, the discretionary authority provided in the Proxy will
be exercised to cumulatively vote for the remaining nominees, or for a
substitute nominee or nominees, if any, as shall be designated by the Board of
Directors.

Nominees

The following table sets forth the name and age of each nominee for Director,
indicating all positions and offices with the Company presently held, the period
during which each has served as such, and the class and term for which each has
been nominated:

Year First
Name Age Position Director
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Gregory Barnhill 49 Director 2001
Dennis Brovarone 47 Director 1996
Gary Brownell, CPA 54 Chief Financial Officer, Director 1996
Patrick Galuska 44 Director 1996
Michael L. Krall 51 President, CEO, Chairman, Director 1992
Eugene Peiser, PD 71 Director 1996
Donna Singer 33 Executive Vice President, Director 1999

Business Experience of Nominees

GREGORY H. BARNHILL Mr. Barnhill is a Partner and member of the Board of Brown
Advisory Securities, LLC. Previously, Mr. Barnhill served as Managing Director
of North American Equity Sales at Deutsche Banc Alex.Brown Inc., Baltimore, MD.
He joined the firm in 1975, following his graduation from Brown University with
an AB degree in economics.

DENNIS BROVARONE Mr. Brovarone has been practicing corporate and securities law
since 1986 and as a sole practitioner since 1990. He was elected to the
Company's Board of Directors in April 1996. From December 1997 to April 2001,
Mr. Brovarone served as the President and Chairman of the Board of Directors of
Ethika Corporation, a publicly held, Mississippi corporation investment holding
company with its office in Littleton, Colorado. From January 1995 to March 1998,
Mr. Brovarone served as President (Chairman) of the Board of Directors of The
Community Involved Charter School, a four year old K-12 public school located in
Lakewood, Colorado, operating under an independent charter and serving
approximately 350 students in an individualized, experiential learning
environment. Prior to 1990, Mr. Brovarone served as in-house counsel to R.B.
Marich, Inc., a Denver, Colorado based brokerage firm. Mr. Brovarone lives and
works in Littleton, Colorado.

GARY W. BROWNELL Mr. Brownell is a Certified Public Accountant in a private
partnership practice. He is the partner in charge of taxes and municipal audits
for his firm. Mr. Brownell graduated from San Diego State University in 1973
with a Bachelor of Science degree in accounting. He received his Certified
Public Accountant designation in 1983. Mr. Brownell has been a partner in
Brownell and Duffy since 1985.

PATRICK GALUSKA Mr. Galuska is a consulting petroleum engineer in Denver,
Colorado. His practice focuses mainly on the acquisition and exploitation of
underdeveloped oil and gas assets in the Rocky Mountain area. He is a Registered
Professional Engineer and is a member of the Society of Petroleum Engineers. Mr.
Galuska earned his BS degree in petroleum engineering from the University of
Wyoming and received his MBA degree in Finance from the University of Denver.
Mr. Galuska resides in Littleton, Colorado with his wife and two children.

MICHAEL L. KRALL Mr. Krall is the President, CEO and Chairman of the Board of
Directors of Innovative Medical Services, a position he has held since 1993. He
is responsible for the strategic planning, product development, and day-to-day
operations of IMS. Previously, Mr. Krall was the President and CEO of
Bettis-Krall Construction, Inc., a successful building-development company of
custom homes and commercial property in San Diego County, California. He has
also held numerous positions in general management in the hospitality industry.
Mr. Krall attended Pepperdine University (economics, statistics, mechanical
engineering). He previously served 4 years in the United States Marine Corps and
was elected, by general election, to a 4 year term on the Valle de Oro Planning
Board. Mr. Krall lives in El Cajon, California with his wife, Connie, and two
children.

EUGENE S. PEISER, DOCTOR OF PHARMACY Dr. Peiser has been an independent
consultant to FDA regulated industries since 1974 and a Member of the Board of
Innovative Medical Services since 1994. He graduated from the University of
Tennessee College of Pharmacy with a Bachelor of Science in Pharmacy in 1951 and
has received his Doctorate of Pharmacy. Dr. Peiser's consultancy advises on a
wide variety of subjects, including compliance with the Prescription Drug
Marketing Act and other government compliance matters, employee training and
drug repackaging. Dr. Peiser furnishes expert witness services and has provides
approved Pharmaceutical Continuing Education to several thousand attendees at
his seminars. Dr. Peiser is a Founding Director of the Association of Drug
Repackagers; is appointed as a Registered Arbitrator by the American Registry of
Arbitrators; and is President of the Southwest Chapter of the Association of
Military Surgeons. Dr. Peiser lives and works in Palm Harbor, FL.

DONNA SINGER Ms. Singer is the Executive Vice President of Innovative Medical
Services. From 1996-1998, Ms. Singer served as Vice President of Operations for
the Company. Ms. Singer is responsible for company operations, corporate
communications, investor relations and marketing. Previously, Ms. Singer served
as the investor relations executive at Western Garnet International, a Toronto
Stock Exchange mining company. Ms. Singer graduated from Gonzaga University with
a Bachelor of Arts degree and lives in El Cajon, California.

PROPOSAL NO. 2. CHANGE OF COMPANY NAME TO "PURE BIOSCIENCE"
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Innovative Medical Services' Articles of Incorporation currently specifies the
name of the company as "Innovative Medical Services." The Board of Directors is
proposing an amendment to Innovative Medical Services' Certificate of
Incorporation to change the company's name to "Pure Bioscience." If the
stockholders approve this proposal, Article One of Innovative Medical Services'
Articles of Incorporation will be amended to read in its entirety as follows:

ONE: The name of this corporation is Pure Bioscience.

Innovative Medical Services began as a provider of pharmaceutical water
purification and dispensing equipment, but through acquisition, research and
development, we have expanded into the life sciences market with unique, high
efficacy/low toxicity chemical technologies that represent innovative advances
in diverse markets. Therefore, the Board of Directors believes that "Innovative
Medical Services" is no longer reflective of Innovative Medical Services'
business as it exists today. Changing our name to "Pure Bioscience" represents
our evolution from a niche market water treatment supplier to a bioscience
company supplying proprietary technology solutions to wide ranging markets. The
Company's stock symbol will remain "PURE."

AUDITORS OF THE COMPANY'S FINANCIAL STATEMENTS

Management has selected Miller & McCollom, Certified Public Accountants, as
independent auditors to examine the financial statements of the Company for the
fiscal year ending July 31, 2003. A representative of Miller & McCollom will not
be at the annual meeting. Any appropriate questions of Miller & McCollom will be
promptly forwarded to them for response.

Audit Fees

Miller & McCollom was paid aggregate fees of $8,640 for professional services
rendered for the audit of the Company's annual financial statements for the most
recent fiscal year ended June 30, 2002 and the reviews of the financial
statements included in Company's quarterly reports on Form 10QSB during that
fiscal year.

Financial Information Systems Design and Implementation Fees

Miller & McCollom was paid no fees for professional services rendered in
connection with the design and implementation of the Company's financial
information systems.

Other Fees

Miller & McCollom was paid no other fees for professional services.

REQUEST FOR COPY OF FORM 10-KSB

Shareholders may request a copy of the Form 10-KSB by writing to the Company's
offices, 1725 Gillespie Way, El Cajon, California 92020.

DATE FOR RECEIPT OF SHAREHOLDER PROPOSALS

Any proposal by a shareholder to be presented at the Company's 2004 Annual
Meeting of Shareholders, including nominations for election as directors must be
received at the offices of the Company, 1725 Gillespie Way, El Cajon, California
92020, no later than October 31, 2003.

[GRAPHIC OMITTED]
[Innovative Medical Services
a NASDAQ Company]