October 1, 2008

WILLMAR, Minn., Oct. 1 /PRNewswire/ -- Fiberstar, Inc. announced today
that Z Trim Holdings (OTCH Bulletin Board: ZTMH) has called it quits with
regard to its patent litigation lawsuit against Fiberstar.

Earlier this year, the United States District Court for the Western
Division of Wisconsin ruled that Fiberstar's Citri-Fi(R) " ... products do
not infringe any of the claims asserted ... " by Z Trim.

After fighting a losing two-year battle trying to prove that
Fiberstar's line of Citri-Fi products infringe the claims of the George
Inglett patent it licenses from the USDA, Z Trim has entered into a
settlement agreement with Fiberstar.

Under the terms of the settlement, Z Trim has agreed to accept as
binding, effective and unappealable, the non-infringement Claim
Construction and Summary Judgment Orders of the United States District
Court for the Western District of Wisconsin, with regard to Fiberstar's
line of Citri-Fi products.

As part of the settlement, Z Trim further agreed to dismiss its appeal
of the lower Court's rulings and pay Fiberstar a portion of the Court's
cost award order. In return, Fiberstar agreed to dismiss its appeal but,
should it ever find itself involved in any subsequent suit involving Z
Trim's patent, Fiberstar retained its right to assert its claims and
defenses that the Z Trim patent is invalid and unenforceable, a long-held
position that served as the core of Fiberstar's counterclaims against Z
Trim.

Both Fiberstar and Z Trim claim to have products that can be used in a
wide range of food products to replace fat without changing taste or
texture. However, applications for Citri-Fi go far beyond fat replacement
due to Citri-Fi's all-natural production process and ease of hydration.

Fiberstar's President and CEO, Dale Lindquist said, "The litigation
process afforded us the opportunity to establish the differences between
Citri-Fi and Z Trim's product. We believe that Citri-Fi products offer
distinct benefits that outweigh the benefits offered by Z Trim's products,
the most compelling of which is Citri-Fi's price advantage."

Because Citri-Fi is so easy to use as a dry ingredient, it does not
have to be purchased as a costly pre-hydrated product. Citri-Fi sells for
$2.61 per dry pound, significantly less than Z Trim's comparable dry
products. When hydrated with 7 parts of water, one pound of Citri-Fi powder
can be used to make 8 pounds of hydrated product or $0.33 cents per
hydrated pound.

This compares to Z Trim Fat Replacement Powder which was recently
listed on Z Trim's website at $29.99 for eight ounces. The Z Trim website
states that eight ounces of Z Trim Powder can be used to make approximately
10 pounds of Z Trim gel which calculates to a cost of $3.00 per hydrated
pound.

Z Trim Fat Replacement Gel which was recently listed on Z Trim's
website at $4.99 for 1.18 pounds or $4.22 per hydrated pound.

"The cost difference alone gives Citri-Fi a huge competitive advantage
even before considering Citri-Fi's many other practical and functional
benefits," according to Lindquist.

For food manufacturers interested in simplicity, Citri-Fi does not have
to be reconstituted via a high speed shearing step which saves Citri-Fi
customers time and money. Instead, Citri-Fi absorbs moisture and fully
hydrates immediately on contact with water. This functionality enables
Citri-Fi to be added as a dry ingredient to absorb free water and oil
thereby reducing syneresis and increasing yields and revenues in a wide
variety of food products.

Z Trim's patent discloses the use of sodium hydroxide and/or hydrogen
peroxide to make Z Trim. For food manufacturers interested in more
all-natural food ingredients, Citri-Fi is the ingredient of choice because
it is made without the use of these or any other chemicals.

Z Trim's website discloses that Z Trim Fat Replacement Powder contains
a drying aid, soy lethicin. For food manufacturers who want to avoid using
soy ingredients in their food products, Citri-Fi is the ingredient of
choice because no soy products are used to make Citri-Fi.

Z Trim's website discloses that Z Trim Fat Replacement Gel contains the
chemical preservatives sodium benzoate and citric acid. For food
manufacturers and school lunch programs concerned about putting these
chemicals into the food products they make, Citri-Fi is the ingredient of
choice because Citri-Fi does not contain sodium benzoate or any other
chemical preservative.

For the past twelve years, Z Trim has been touted as the darling of fat
replacers by food nutritionists and media the world over. Yet according to
Z Trim's Quarterly Report Form 10-Q/A filed with the SEC on September 15,
2008, Z Trim reported total product revenues of only $238,307 for the
entire first six months of 2008, after reporting losses of more than $66
million spent over the past few years trying to interest food manufacturers
and consumers to purchase its products.

Z Trim's stock closed at $1.27 per share on July 6, 2006, the date Z
Trim's first lawsuit filing against Fiberstar. On September 29, 2008, the
date the Fiberstar-Z Trim settlement agreement was filed with the Court, Z
Trim's stock closed at $0.05 per share, having lost 96% of its per share
value.

Between the time Z Trim first initiated litigation against Fiberstar
and now, Fiberstar's sales have soared with average monthly sales of
Citri-Fi well above Z Trim's total revenues for six months during the first
half of 2008.

In November 2007, Citri-Fi was recognized by a prestigious panel of
judges who awarded it the Silver Award for the most innovative food
ingredient introduced in Europe during the past two years. Citri-Fi's
customer list includes the names of some of the largest food manufacturers
in the world.

"For health and wellness consumers and food manufacturers who want
their foods to be made with ingredients that are more natural and made
without the use of chemicals at a much lower cost, clearly the better
choice is Citri-Fi", Lindquist concluded.

About Citri-Fi

Citri-Fi is a novel, all-natural functional food ingredient made from
citrus pulp that is specially suited for controlling moisture migration;
improving yields; adding moistness; oil, fat, phosphate and egg
replacement; emulsification, and reducing the cost of a wide variety of
food products. Citri-Fi's water holding and emulsification capabilities are
truly remarkable as it not only holds water and oil; it binds it and does
not release it over time -- even through freeze-thaw conditions. The
superior water and oil binding functionality of Citri-Fi makes it an
outstanding natural fat replacer and emulsifier that maintains taste and
texture, and reduces cost. With over 70 tested food applications, Citri-Fi
is an essential ingredient for food manufacturers to use to enhance the
quality and healthiness of their food products. Popular applications
include: baked goods, dairy, dressings and sauces, frozen foods, processed
meats, and prepared salads. Citri-Fi is GRAS, non-GMO, all-natural,
non-allergenic, kosher-parve, and halal.

About Fiberstar

Fiberstar is a privately held, global innovation and technology-driven
company, founded in 1998 to develop new and novel functional ingredients by
Enhancing the Functionality of Natural Plant Materials(TM).

For more information about Fiberstar and Citri-Fi, please visit http://www.fiberstar.net.