Z Trim Activates Vendor Partnership with P.O.W.E.R (Purchasing Organization with Educational Results) Serving 38 Florida County School Districts

MUNDELEIN, Ill.-- (BUSINESS WIRE) -- Z Trim Holdings, Inc. (AMEX:ZTM) has received an order from the food service operation of the Flagler County Public Schools. The transaction activates Z Trim’s vendor partnership with the P.O.W.E.R. Buying Group (Purchasing Organization with Educational Results), a Florida buying consortium that consists of 38 county school districts, totaling over 900 schools and serving over 800,000 meals per school day.

In addition, Z Trim will be assisting both students and district food service administration for Flagler County Public Schools in planning the school system’s food service menu to meet USDA nutritional requirements. The first student project will be to develop elementary school menus for one week.

“We’re thrilled to have the innovative food service staff at Flagler County schools represent the first success in our servicing of the POWER Buying Group,” said Jon Dickl, credentialed school nutrition specialist and Director of Sales – Wellness Foods for Z Trim. “We not only intend to serve each account with the best tasting low fat products available, but we’re also uniquely resourced with the expertise to assist in menu planning to meet the nutritional guidelines for the USDA’s school meals program, especially in regard to the requirements for limiting fat in foods served to 30% of calories,” he said. “Involving the students in that process and having the opportunity to assist in the nutritional health curriculum is something we take great pride in,” added Dickl.

This first sale to a county school system member of the P.O.W.E.R. Buying Group will consist of Z Trim natural fat replacement gel which Flagler County School food service will use in baking, sour cream, macaroni and cheese and casseroles. As well, the school system purchased Z Trim Mayo Spread, a finished product in which Z Trim natural dietary fiber gel replaces over 80% of the fat typically contained in full fat mayonnaise alternatives.

“The student-planned menu is part of the Florida School Nutrition Association President’s Nutrition Initiative program,” said Angela Torres, Food Service Director for Flagler County Public Schools. “We’re very pleased to not only replace fat with the natural dietary fiber of Z Trim,” she said, “but we appreciate Z Trim’s willingness to partner with us in a nutritional education initiative to show the students how they can make healthier versions of their favorite menu items.”

USDA-developed Z Trim is a natural non-caloric functional food ingredient that can lower calories from fat up to 80% in foods while maintaining superior taste and mouthfeel. Z Trim provides the texture of fats without the calories and can substantially reduce harmful trans fats, saturated fats, and cholesterol, and contribute to a healthy diet. Z Trim was recognized as the "Most Innovative Ingredient” at the 2006 the Food Ingredients South America's (FISA) International Exhibition for Solution and Technology for the Food Industry conference.

Z Trim is used to reduce fats and maintain moisture for the dairy, bakery, meat and poultry, and sauces and dressings industries, as well as in schools participating in the nation's School Meals Program. It can make meats juicier, baked goods moister, and dips creamier. Z Trim food technology provides a natural solution to global challenges of obesity and associated health problems. www.ztrim.com

Forward-Looking Statements and Risk Factors

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," "anticipates," "plans," or "expects," and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements. Reference is made to the Company's filings with the Securities and Exchange Commission for a more complete discussion of such risks and uncertainties.

Z Trim Holdings, Inc.

Phil Versten, 847-549-6002

philv@ztrim.com

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