Z Trim Restates Financials – Improves Numbers for 2007

    MUNDELEIN, Ill., Aug. 22 /EMWNews/ -- On August 20 and 21,

2008, Z Trim Holdings, Inc. (Amex: ZTM) filed its amended Form 10-Q/A for

the period ended March 31, 2008, and Form 10-KSB/A for the period ended

December 31, 2007, with the Securities and Exchange Commission. The Company

determined that, in connection with the United States Securities and

Exchange Commission's review of our financial statements, it needed to

amend its financial statements for the year end 2007 in order to clarify

certain information, be compliant with federal rules and regulations and

correct an error relating to an expense recognized in the first quarter of

2007 that should have been incurred in the fourth quarter of 2004.

Specifically, the Company's recognition of expense of $2,182,175 relating

to the release of restrictions on shares of stock on March 9, 2007 was

incorrect. This change also required a restatement of the financial

statements for the first quarter of 2008.



    "These changes actually have a positive impact on our numbers," stated

the Company's Chief Financial Officer, Brian Chaiken. "As a result of the

amendment, the Company's financial performance for the year 2007 improved

by $2,182,175, and its retained earnings for the year end 2007 increased by

$1,170,000. The Company's net loss per share for the year end 2007 was

reduced by $.03, from $0.21 per share to $0.18 per share."



    ABOUT Z TRIM(R)



    Z Trim, http://www.ztrim.com, is a natural, multifunctional fiber

ingredient and emulsifier made from the hulls of corn. Because Z Trim is

non-caloric, replacement of added fats with Z Trim can achieve up to 80%

calorie reduction in many foods without negatively affecting taste or

texture, and can substantially reduce harmful trans and saturated fats

found in many foods. Z Trim is a versatile product that can serve as a fat

replacement, thickening agent or emulsifier with texturization, binding,

shaping, suspension, water control and pH balance attributes. Z Trim

represents a natural and frequently cost competitive alternative to many of

the oils, gums and starches it can replace. Z Trim has wide application in

dairy products, dressings, dips, sauces, baked goods, processed meats,

snack foods, cookies, pies, cakes, icings, brownies, bars, ice cream, milk

shakes and many other foods.



    Forward-Looking Statements and Risk Factors



    Certain statements in this press release are "forward.looking

statements" within the meaning of Section 27A of the Securities Act of 1933

and Section 21E of the Securities Exchange Act of 1934. These statements

involve a number of risks, uncertainties and other factors that could cause

actual results, performance or achievements of Z Trim Holdings to be

materially different from any future results, performance or achievements

expressed or implied by these forward.looking statements. Other factors,

which could materially affect such forward.looking statements, can be found

in our filings with the Securities and Exchange Commission at

http://www.sec.gov, including risk factors relating to our history of

operating losses, that our auditors have expressed substantial doubt

regarding our ability to continue as a going concern, that we are currently

deficient with respect to Amex' continued listing standards due to going

concern issues, lack thus far of significant market acceptance of our

products, the fact that we may dilute existing shareholders through

additional stock issuances, and our reliance on our intellectual property.

Investors, potential investors and other readers are urged to consider

these factors carefully in evaluating the forward.looking statements and

are cautioned not to place undue reliance on such forward.looking

statements. The forward.looking statements made herein are only made as of

the date of this press release and we undertake no obligation to publicly

update such forward.looking statements to reflect subsequent events or

circumstances.



    Contact: Brian Chaiken



    Voice: 847-549-6002



    Email: [email protected]