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Circle Group Holdings Signs New $20 Million Equity Financing Deal; Takes Next Step in Bringing Emerging Technology Products to Global Marketing Partners.

Business Editors

MUNDELEIN, Ill.--(BUSINESS WIRE)--Oct. 27, 2003

Circle Group Holdings, Inc. (OTCBB:CRGQ) announced today the closure of a $20 million financing arrangement with Dutchess Private Equities Fund, LP.

Circle Group will use a portion of the proceeds to bring to market the Z-Trim functional fat replacement products developed by its subsidiary, FiberGel Technologies, as well as to develop other emerging technologies.

Under the terms of the equity line financing, Circle Group will have the right, at its sole option, over the next 24 months to require Dutchess to purchase shares of Circle Group Common Stock at specified amounts and prices. Dutchess will register the shares purchased for resale.

Z-Trim is a line of all-natural, zero calorie fat substitutes originally developed by the United States Department of Agriculture (USDA) Agricultural Research Service. Z-Trim can be used by food manufacturers to decrease fat and calories and increase insoluble fiber in a variety of products, including cheeses, baked goods, meat products, dressings, confectionary products and a wide range of other prepared foods.

"This financing is an important step for Circle Group because it enables us to strengthen our efforts in developing Z-Trim applications and

delivering them to domestic and overseas marketing partners," said Greg Halpern, CEO of Circle Group Holdings.

"We're impressed by Circle Group's focus and commitment to providing commercial food producers essential and superior solutions for developing healthier products," said Lou Posner, Vice President of Corporate Finance at Dutchess Private Equities.

Circle Group Holdings focuses on acquiring life-changing technologies and assisting its portfolio of companies in their efforts to bring these products to the marketplace. In addition to FiberGel Technologies, Circle Group is developing other ventures, including Mini-Raman Lidar, a short-range chemical detection technology developed by the U.S. Department of Energy's Brookhaven National Laboratory for screening unknown chemical, narcotic and hazardous substances without operators coming in contact with the substances, as well as ThraxVac, a portable or installed tool under development that simultaneously captures and kills anthrax and other bacterial spore biohazards.

About Circle Group Holdings, Inc.

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

This press release and prior releases are available on the Company's web site at www.crgq.com/HTML/breakingNews.html.

About FiberGel Technologies

FiberGel owns the worldwide rights to Z-Trim for all fields of use. Developed by the United States Department of Agriculture (USDA), Z-Trim is a patented, zero calorie, multi-functional, fiber food ingredient that lowers calories in most foods without affecting taste or texture.

For more information about Fiber Gel Technologies, visit http://ztrim.com/.

About Dutchess Advisors, LLC

Dutchess Advisors, LLC is engaged in assisting growth companies in all facets of their long-term strategy by providing capital and progressive business solutions. Through Dutchess Private Equities Fund, LP, it manages a portfolio of private investments in public equities. Although the Company's investments are passive in nature, Dutchess provides a wide range of advisory services to assist its client companies long after the initial infusion of capital. Founded in 1996, Dutchess has been involved in excess of $200 million in financings for such companies.

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.
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Publication:Business Wire
Geographic Code:4EUUK
Date:Oct 27, 2003
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