EXHIBIT 99.1
PRESS RELEASE Source: Circle Group
Holdings, Inc.
CIRCLE GROUP HOLDINGS, INC. REPORTS SECOND QUARTER
2004 FINANCIAL RESULTS
Monday August 16, 3:32 pm ET
NEW Z-TRIM/Z-BIND PLANT RIBBON CUTTING SET FOR AUGUST 25
MUNDELEIN, Ill., August 16 /PRNewswire-FirstCall/ -- Circle Group Holdings, Inc.
(Amex: CXN - NEWS) a pioneer of emerging technology companies, announced today
its financial results for the second quarter ended June 30, 2004. Revenues for
the quarter of $218,724 were 9.5% higher than the $199,822 from the same quarter
a year earlier. The Company reported a net loss for the second quarter 2004 of
$937,853 or $0.02 per share, versus the net loss of $119,771 or $0.00 per share
for the second quarter of 2003. The second quarter loss increased from the prior
year as a result of higher costs related to the build out of the FiberGel
Technologies manufacturing facility.
Revenues for the six-month period ending June 30 of $342,528 were 14.4% lower
than the $400,089 from the same period a year earlier. The Company reported a
net loss $2,586,112 for the six-months ended June 30, or $0.07 per share, a 572%
increase from the net loss of $384,952 or $0.02 per share for the same period of
last year. The increase was due to the higher costs related to the build out of
the FiberGel Technologies manufacturing facility.
Total assets increased to $6,605,299 at June 30, 2004 from $2,814,016 on
December 31, 2003 as a result of additional funds raised from equity
transactions as well as the exercise of Options and warrants. Total operating
expenses increased by $612,808 or approximately 196% to $925,163 for the three
months ended June 30, 2004 from $312,355 for the same period in 2003, and
increased by $1,892,226 or approximately 317% to $2,489,404 for the six months
ended June 30, 2004 from $597,178 for the same period of last year. Net cash
used by operating activities increased by 165% to $1,116,317 for the six months
ended June 30, 2004 as compared to $420,552 for the same period in 2003. Net
cash used by operating activities was $289,212 for the three months ended June
30, 2004, as compared to $289,946 for the same period in 2003.
"We ramped up our investment in Z-Trim(TM) and Z-Bind(TM) production and
technology development with our new nearly completed Mundelein production
facility. It will allow us to meet the growing market demand that we are
experiencing," said Gregory J. Halpern -- Chairman, CEO & President of Circle
Group Holdings. "Our new plant will have its ribbon cutting ceremony on August
25."
Recent Company Highlights:
* Circle Group Holdings Added to the Russell 3000
http://www.crgq.com/press/06_29_2004.html
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* Circle Group Settles Lawsuit for $950,000
http://www.crgq.com/press/06_16_2004.html
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* Eastern Illinois University's Taste Tests Demonstrate Benefits of
Circle Group Holdings' Z-Trim Fat Replacement
http://www.crgq.com/press/06_10_2004.html
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* Leadership Council Honors Greg Halpern of Circle Group - Successful
Meeting Follows On Capitol Hill
http://www.crgq.com/press/04_05_2004.html
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* Independently conducted "Taste Tests" recognize benefits of Circle
Group Holdings' Z-Trim fat replacement
http://www.crgq.com/press/04_26_2004.html
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Circle Group Holdings, Inc. held it's annual shareholder meeting on was
held at the company's headquarters in Mundelein, Illinois.
About FiberGel Technologies
FiberGel owns the worldwide rights to Z-Trim for all fields of use, which was
invented over many years by Outstanding Senior Research Scientist Dr. George
Inglett (http://www.thesoydailyclub.com/Research/ars2132002.asp) at the United
States Department of Agriculture (USDA). Z-Trim is a patented revolutionary
all-natural, zero calorie fat replacement that
EXHIBIT 99.1
reduces calories and increases healthy insoluble fiber in a variety of products,
including cheese, baked goods, processed meats, dressings, confectionery and a
wide range of other prepared foods. It has been well received by consumers and
major domestic and foreign food manufacturers as a vital mainstream ingredient
for making healthier foods with fewer calories that don't sacrifice taste or
texture. For more information about FiberGel Technologies, visit
http://ztrim.com.
About Z-Amaize Technologies, Inc.
Z-Amaize is a wholly owned subsidiary of Circle Group Holdings created to market
its line of Z-Bind industrial adhesive products for the plywood manufacturing
industry. Z-Bind is an adhesive extending component that emerged from research
performed by its FiberGel Technologies product development group. Z-Bind
products represent an affordable alternative to plywood manufacturers seeking
superior and environmentally friendlier adhesives. For more information about
Z-Bind, visit http://www.crgq.com/zbind.
About Circle Group Holdings, Inc.
Circle Group Holdings, Inc. (Amex: CXN - NEWS; http://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. All Company press releases are available 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.
Contact: Steve Cohen
Voice: 847-549-6002
Email: ir@crgq.com
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Source: Circle Group Holdings, Inc.