What is the Core Business of Z Trim Holdings, Inc.?

Z Trim Holdings, Inc.(ZTHO) deploys formulation, processing, and product performance solutions built around proprietary corn-based and oat-based multifunctional food ingredients for global food markets.

The company's core product portfolio of multifunctional food ingredients currently includes Corn Z Trim® and non-GMO Oat Z Trim®. The superior water-holding capacity and unique amorphous structure of Z Trim ingredients enable the exclusive multifunctional attributes our products bring to food product design, including moisture management, texture and appearance quality, fat and calorie reduction, and cost control.

Z Trim Holdings operates within the $25-30 billion per year (2007) global business of food additives. The global hydrocolloid business - which consists of agents used for thickening, gelling and stabilizing food and beverage products, is over $19 billion per year (http://www.sriconsulting.com/CEH/Public/Reports/582.7000/) with food applications constituting approximately $4.2 billion of that total (http://www.foodnavigator-usa.com/Financial-Industry/Health-and-prices-dominate-hydrocolloids-debate). Specifically, the U.S. fat replacer and bulk dietary fiber (supplement) markets are estimated to be just over $500 million each, with carbohydrate-based fat replacers such as Z Trim accounting for over half of the market.

How are Z Trim Shares Traded?

Z Trim securities (ZTHO) are traded over-the-counter or OTC. OTC stocks are unlisted, unlike stocks traded through a central exchange such as the NYSE or NASDAQ. OTC securities, therefore, can be purchased only through an account with a brokerage, whether a discount or full service brokerage. The brokers then work with the market makers, who actually carry an inventory of securities to facilitate trading and to complete the transaction. The “bid” and the “ask” are transacted by the broker and the market maker. Bid and ask quotes can be monitored constantly by an investor through the Over-The-Counter Bulletin Board (OTCBB).

Who in the Food Industry Uses Z Trim®?

Z Trim® is used by food manufacturers on 6 continents, across a multitude of food categories, such as meats, sauces, soups, dressings, baked goods, fillings, toppings, prepared meals, dairy products, frozen handheld snacks, and pizza dough.

Z Trim Holdings is developing its market through (i) direct and brokered sales to major food manufacturers, as well as small and mid size companies for packaged retail foods, and (ii) direct and brokered sales to foodservice manufacturers that supply to restaurants, hospitals, schools and cafeterias.

What Drives the Demand for Z Trim® Products in the Marketplace? Will Demand Grow?

The management of water and control of moisture in foods is a key concern of the food industry as it impacts texture, emulsion, viscosity, shelf-life and other factors.

Toward that end, food formulators are seeking greater functionality, efficacy and product performance than they can get from starches, gums, fats, and other fibers - for both standard and lower fat content foods - and are increasingly discovering how Z Trim® multifunctional ingredients can help to delight their consumers with finished products that have enhanced eating quality, outstanding product performance and, frequently, improved nutritional profiles.

Who Invented Z Trim®? How is it Protected?

Z Trim® originated from a USDA patent for minimally processed, non-caloric functional food ingredients made from healthy dietary fiber. With an exclusive license from the USDA, this patent is central to the company's intellectual property portfolio. Z Trim Holdings subsequently evolved the processing technology and expanded the fiber sources to create innovative ingredients with unique properties that provide multifunctional benefits that help create value for food manufacturers around the world.

Z Trim Holdings protects an array of intangible assets that includes patents pending and issued, as well as a wide array of trade secrets and know-how, trademarks and copyrights. Central to this portfolio is an exclusive license to US Patent No. 5,766,662, including all related international patents, issued to Dr. George Inglett of the USDA. This license expires upon the expiration of the underlying patent in late 2015. Through the process of development and commercialization of the technology, the Company has identified and sought patent protection for improvements to the manufacturing process, product applications and is currently developing several commercially promising spin-off technologies. Presently, the Company employs 24 full-time employees and no part-time employees.

Our R&D team, in conjunction with our customers and strategic industry partners, continues to develop additional products and applications.

When Did Z Trim Holdings, Inc. Begin?

Z Trim Holdings, Inc. was incorporated in the State of Illinois on May 5, 1994 under the original name Circle Group Entertainment Ltd. The Company has no operating subsidiaries.