MUNDELEIN, Ill., Aug. 18, 2011-- Z Trim Holdings, Inc. (OTC: ZTHO), manufacturer of multifunctional dietary fiber ingredients for the food industry, today announced increased revenue of 19%, for the six month period ended June 30, 2011.

Company Highlights:

· Z Trim recently completed the installation of $762,000 of new equipment needed to increase manufacturing capacity of our prototype plant.

     o Following the expansion, the Company recorded its best month of manufacturing output in its

        history and expects this trend  to continue.

 · In the first half of 2011, approximately 81% or $8.1 million of our 8% Convertible Secured Note holders, including all of our external directors and our largest investor, Brightline Ventures I, LLC, voluntarily converted their Notes into common stock of Z Trim which significantly strengthened our balance sheet.

· Z Trim’s all-natural products, among other things: help to reduce fat and calories; add fiber; prevent oil migration; and add binding capacity. Most importantly, our products can help extend finished products and thereby increase customers’ gross margins.

 · Z Trim entered into a 3-year agreement with the United States Department of Agriculture to conduct joint research for the development of additional products and processes relating to its current patented portfolio.

 “Throughout 2011 we have successfully increased revenue, due to the greater production capabilities of our proprietary nutritional fiber,” stated Mr. Steven Cohen, Chief Executive Officer of Z Trim Holdings. “Management believes that our increased capacity will allow us to expand our market presence among the popular snack, beverage, and baked goods industries. The Company is currently engaged in discussions with several of the world’s largest food and nutrition companies for large scale orders. We intend to establish ourselves as a trusted global provider of all-natural products to the consumer goods market as we continue to ramp our production throughout the remainder of 2011.”

Three Month Financial Results for the Period Ended June 30, 2011

Revenue for the three months ended June 30, 2011 was $207,560, a 3% increase from $201,139 for the three months ended June 30, 2010. Revenue for this period was entirely attributable to increased product sales, which in turn, resulted primarily from sales to large food processors.

Cost of revenues for products sold for the three months ended June 30, 2011 and 2010 was $609,038 and $580,283, respectively, an increase of $28,755 or 5%. The increase in costs of goods sold is attributable to increased sales expense as well as increases in direct labor, maintenance salaries, receiving and shipping costs, and depreciation. At lower production volume , our per-unit cost of finished goods remains relatively high, however, as production increases, and fixed costs are spread over a greater number of finished goods, we expect unit costs to decrease materially.

Operating expenses for the three months ended June 30, 2011 were $1,662,144, a decrease of $383,093 or 19% from $2,045,237 for the three months ended June 30, 2010. Operating expenses for this period consisted entirely of selling, general and administrative expenses, as compared to operating expenses for the three months ended June 30, 2010 with $2,004,878 attributable to selling, general and administrative expenses and $40,359 attributable to a loss on asset disposal.

For the three months ended June 30, 2011 and 2010, we reported net losses of $260,276 and $3,608,541, respectively.

The basic and diluted net loss per share for the three months ended June 30, 2011 was $0.02 per share based on 13.1 million shares, as compared to net loss per share of $0.98 based on 3.7 million shares for the three months ended June 30, 2010 due to the effect of the results described above as well as the offset of additional shares outstanding in 2011 due to the conversion of notes payable into shares of common stock.

The Company reported cash of $2.7 million on its balance sheet as at June 30, 2011.

Six Month Financial Results for the Period Ended June 30, 2011

Revenue for the six months ended June 30, 2011 was $454,926, a 19% increase from $381,389 for the six months ended June 30, 2010. Revenue for this period was entirely attributable to increased product sales, which in turn, resulted primarily from sales to large food processors.

Cost of revenues for products sold for the six months ended June 30, 2011 and 2010 was $1,254,696 and $1,123,705, respectively, an increase of $130,991 or 12%. The increase is attributable to sales expense as well as increases in direct labor, maintenance salaries, receiving and shipping costs, and depreciation.

Operating expenses for the six months ended June 30, 2011 were $3,455,885, a decrease of $848,238 or 20% from $4,304,123 for the six months ended June 30, 2010. Operating expenses for this period consisted entirely of selling, general and administrative expenses, as compared to operating expenses for the six months ended June 30, 2010 with $4,263,764 attributable to selling, general and administrative expenses and $40,359 attributable to a loss on asset disposal.

For the six months ended June 30, 2011 and 2010, the Company reported net losses of $7,157,174 and $4,356,921, respectively.

The basic and diluted net loss per share for the six months ended June 30, 2011 was $0.67 per share based on 10.7 million shares, as compared to net loss per share of $1.21 based on 3.6 million shares for the six months ended June 30, 2010.

ABOUT Z TRIM®

Z Trim Holdings, Incorporated, http://www.ztrim.com, deploys technology, formulation, and product performance solutions built around cutting edge multifunctional dietary fibers for both domestic and international food markets. Made from either corn bran or oat hulls, Z Trim® fiber ingredients contribute multifunctional attributes for food product design and processing, including moisture management, texture and appearance quality, fat and calorie reduction, clean labeling, and cost-control. Z Trim® can provide enhanced eating quality, outstanding product performance, and frequently, improved nutritional profiles in meats, sauces, dressings, microwaveable hand-held snacks, baked goods, fillings, toppings, prepared meals, ice cream, cream cheese, dips, and many other food products.

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 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, 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: Media:

Angela Strickland

(847) 549-6002

mediarelations@ztrim.com

Or

Investor Relations:

Alliance Advisors

Thomas Walsh

twalsh@allianceadvisors.net

(212) 398-3486