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

ising indication that this new approach will help us to move large prospective clients more rapidly from initial concept through development and testing to finished product launch.

R & D Update

One of the most exciting and significant recent events is our development of a new line of food ingredient products that provide additional functionality and value-added propositions to the food industry. Under the direction of renowned food scientist Dr. Triveni Shukla, our R & D team has developed a new product stream similar in function to certain gum products. Remarkably, this derives from an improvement to the Z Trim manufacturing process and is therefore a cost effective means of producing incremental revenue from the same incoming raw materials. In fact, this innovation will enable our plant to nearly triple production capacity of saleable products while driving down the unit cost of goods sold.

We continue to explore additional capabilities and markets for these products, both individually and in combination with Z Trim in the form of customized blends and emulsions. We have already received high-level interest in this new product.

The Road Ahead

A number of exciting initiatives are underway and should bear fruit within the coming months. These include:
-- Attending the Product Innovation Exchange event in Park City, Utah,

during April to meet directly with decision-makers from several multi-

national food companies who have expressed a high level of interest in

using our ingredient solutions in their finished goods.

-- Continuing to work towards a joint venture agreement with the Brazilian

company, Kraki, an industry ingredient leader in South America.

-- Hiring a new VP of Sales.

We are excited about our future and remain dedicated to building a successful and sustainable business. We continue to improve our technology and diversify our customer base with the goal of
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SOURCE Z Trim
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