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Z Trim Holdings, Inc. Releases Letter to Shareholders

growing our market relationships to the extent that in the second quarter we have seen steady increases in both the size and number of orders.

In point of fact, sales revenues from food manufacturers in the second quarter were almost triple those achieved in the first quarter, and include repeat sales. As of this writing, the third quarter sales revenues are on a course toward establishing sustained growth, and have already exceeded the sales volume from the second quarter. While there remains much hard work ahead, we are building a sound, strategic and consistent operation that is now trending positively.

While I must continue to abide by constraints that preclude my sharing specific information, allow me to provide a few highlights from our second quarter:

-- We've achieved significant milestones in passing a number of rigorous

review processes required by multi-national food companies, including a

systematic and comprehensive plant certification process. These

particular successes significantly enhance our products' access to

global markets.

-- We hired an accomplished sales professional from the specialty food

ingredients market to lead our sales team. Don Hutchison has expertise

in building relationships with R&D, marketing and purchasing decision

makers. As well, Don has successfully directed field sales teams and

broker networks to results that exceeded objectives. In the coming

quarters, we expect Don will play a key role in broadening our customer

base as well as building upon our continuing sales and marketing

accomplishments, such as those summarized below.

-- We are advancing our goal of forming strategic and solutions-oriented

partnerships within the global food industry. We continue to expand

significantly the number of relationships we have with food

manufacturers that are beginning to b

SOURCE Z Trim Holdings, Inc.
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