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

in many of the finished goods he prepares for major food manufacturers.

We also began executing a strategy of presenting finished food solutions to large food manufacturing companies. Instead of merely boasting about how well our products work, we are showing them tangible examples. Our creative R & D team has been developing our own finished formulations to demonstrate Z Trim's amazing array of functional attributes, as well as how great the final products taste. Building on that strategy, we have brought some finished goods directly to the marketplace and we continue to tout the benefits of our products to the food service sector, particularly the schools. A limited release of our salad dressings and mayonnaise has been tremendously well-received, and more importantly, has helped us attract the attention of the major food companies that dominate the retail and food service spaces.

While these experiences bode well, it is important to understand the nature of the food industry sales cycle to appreciate our success so far in penetrating the functional food ingredient market. The sale of even modest amounts of product to giant food companies involves successfully navigating a time and labor intensive obstacle course. Some of the obstacles include convincing decision-makers of the value our unique products bring, providing technical assistance during extensive internal testing, and supporting market research to evaluate consumer preferences and demand.

This ponderous decision-making process has historically taken from several months to several years, but since the advent of the marketing strategy described above, a number of major companies have started working with our products at a much more accelerated pace. Several of these engagements have already resulted in sales. Stated another way, we have crossed the line from merely sending out samples for testing to actually selling product to companies for use in finished goods. We see this as a prom
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SOURCE Z Trim
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