MUNDELEIN, Ill., July 17 /PRNewswire-FirstCall/ -- Fiber Gel Technologies, Inc. (a wholly owned subsidiary of Circle Group Holdings, Inc.) (OTC Bulletin Board: CRGQ - News) has successfully completed its pilot production of Ztrim and the Company is now ready to offer a real answer to the world's growing obesity problem that has resulted from excessive saturated and trans fat consumption. Ztrim is a zero calorie natural fiber from grains that has no taste and closely resembles fat with its smooth texture. Ztrim can replace up to 50% of bad fats and calories in processed and fast foods without compromising the taste and texture qualities consumers are accustomed to. A huge side benefit Ztrim also provides is the addition of much needed healthy dietary fiber.

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"Fiber Gel's biggest hurdle in attacking the global obesity problem has been to get our solution out of the lab and into production. We have crossed that hurdle and successfully proven our proprietary process by producing Ztrim in both its powder and gel forms," said Greg Halpern, Fiber Gel's CEO. "We have also begun filling a huge backlog of requests to our growing number of anxious potential customers who are working diligently on new product formulations to respond to recent public criticism and liability issues. With all of the negative press over the last several months about the processed and fast food makers, the excessive amount of harmful fat in their products, pending fat tax legislation, obesity, and out of control healthcare costs, food companies are displaying unprecedented interest in Ztrim," Mr. Halpern added.

"During manufacturing, we also identified valuable by-products that are available from Ztrim production including an Acacia gum substitute, beta- glucans, corn syrup and other additives. These valuable additions can create substantial new revenue streams for Fiber Gel," said Dr. Triveni Shukla, a veteran practitioner of food technology around the world and Fiber Gel's Vice President of Technology Development. "The company has begun streamlining its manufacturing process and is negotiating worldwide market development plans in an effort to respond as rapidly as possible to the pent up demand for viable healthy solutions which don't noticeably affect the sensory experience that existing food brands provide. In that regard, Ztrim is a very special technology and an idea that's time has come."

About Fiber-Gel Technologies, Inc.

On August 27, 2002, the Circle Group Holdings, Inc. acquired Fiber Gel, which was previously a wholly owned subsidiary of UTEK Corporation ("UTEK"). Fiber Gel owns the exclusive, worldwide license for all fields of use to Z-Trim, an all-natural, carbohydrate-based fat replacement developed by the Agricultural Research Service of the United States Department of Agriculture ("USDA"). Z-Trim can be used to decrease fat and calories and increase insoluble healthy fiber in foods. The target markets for Z-Trim include: dairy (cheeses, dips, spreads) baked goods & confectionary (breads, cookies, candies, cakes, pies), cereals, pasta, snack foods (chips, crackers, energy bars), meats (burgers, lunch meats, deli meats, sausages, hot dogs, fish dogs), beverages (energy drinks, shakes, beers, weight-loss drinks), face and hand lotions.

Fiber Gel has received over 100 inquiries since September 2002 relating to the manufacture, food processing, distribution and sale of Fiber Gel's primary product, Z-Trim, which the Company has the right to produce pursuant to an exclusive license from the USDA. Fiber Gel began sample production in April 2003 of Z-Trim and has entered into mutual non-disclosure agreements and discussions with one of the world largest food companies, McDonald's, Mitsubishi Australia, Manildra Mills and Proctor & Gamble to pursue potential opportunities for Z-Trim. Fiber Gel recently provided milk & dark chocolate samples to a multi-national food and candy company using Z-Trim. Fiber Gel also received a request from a large Canadian brewing company to provide a low-calorie lager formula using Z-Trim. To respond to the recent concerns over obesity, and rising health care costs, Fiber Gel is launching a campaign to offer Z-Trim usage "Rights of First Refusal" to large food processing companies in several categories.

For more information about Fiber Gel Technologies, Inc., visit ztrim.com.

About Circle Group Holdings, Inc.

Circle Group Holdings, Inc. (OTC Bulletin Board: CRGQ - News; https://www.crgq.com/ ), is a pioneer of emerging technology companies. The Company provides small business infrastructure, funding, and substantial intellectual capital to bring important and timely life-changing technologies to market through all early phases of the commercialization process.

For more information about Circle Group Holdings contact Greg Halpern, at 847-549-6002, email [email protected] . This press release and prior releases are available on the Circle Group Holdings, Inc. Web site at www.crgq.com/HTML/breakingNews.html .

Forward-Looking Statements

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.