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Letter to Z Trim Shareholders
Date:4/16/2008

a significant impediment to funding and

thus future growth. This was no mean accomplishment given the breadth

of compliance deficiencies with which we were faced. A number of

procedural and internal control improvements are now in place to ensure

that this experience will not be repeated.

-- Enhanced Fiscal Responsibility -- We promised to get more "bang for the

buck" from our shareholders' investment and while this will remain an

ongoing goal and obligation, we have already made significant progress

toward reducing our cost of operations without sacrificing quality or

capacity. We have taken a hard look at every aspect of our operation

and implemented a number of changes designed to reduce waste and

increase efficiency. Specific examples include identifying less

expensive raw materials, changing utility providers, and strategically

reducing our workforce.

-- Plant Optimization -- We committed to find ways to improve our capacity

while lowering our costs and are well on our way to achieving this

critical objective. Dr. Shukla is confident that by utilizing improved

drying technology, we will be able to substantially increase our pilot

plant capacity while simultaneously driving down unit production costs.

We have already begun the process of re-designing the plant to meet

these objectives, with the goal of completing plant modifications by

the third quarter of this year.

-- Capital -- We just filed our 2007 annual report, and although our

financial performance has materially improved, many hurdles must be

surmounted before we achieve success. Principle among these is the

need to raise the money required to fund plant improvements, strengthen

our sales capabilities and sustain our operations until we reach

profitability. Our Boar
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SOURCE Z Trim
Copyright©2008 PR Newswire.
All rights reserved

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