Circle Group Holdings, Inc. Reports First Quarter 2003 Financial Results

Circle Group Holdings, Inc. (OTC BB: CRGQ) (www.crgq.com), a pioneer of emerging technology companies announced today its financial results for the first quarter ended March 31, 2003. Revenues for the quarter of $200,267 were 114% higher than the $93,742 fourth quarter 2002 results and 33% higher than the $133,442 from the same quarter a year earlier.

The Company reported a net loss for the first quarter 2003 of $265,181 or $0.01 per share, a 39% decrease from the net loss of $432,461 or $0.02 per share for the fourth quarter of 2002, and a 65% decrease from the net loss of $759,733 or $0.04 per share for the first quarter of 2002.

Total assets increased to $1,112,157 at March 31, 2003 from $1,065,691 on December 31, 2002 as a result of valuation on a licensing right. Total operating expenses decreased by $249,183 or approximately 47% to $284,823 for the three months ended March 31, 2003 from $534,006 for the three months ended March 31, 2002. Net cash used by operating activities decreased by 78% to $130,606 for the three months ended March 31, 2003 as compared to net cash used by operating activities of $602,060 for the three months ended March 31, 2002.

"Streamlining of the Company's activities has produced a general improvement in our operations, expenses, sales, and earnings for the first quarter of 2003," said Gregory J. Halpern -- Chairman, CEO & President. "The operational improvements are a direct result of the restructuring of our business and places Circle Group Holdings, Inc. with an improved balance sheet, lower costs, and better future opportunities. With our two most current acquisitions, Z-Trim addresses obesity issues and Lidar focuses on fears over toxic substances, we believe that the Company is poised for success."

Recent Company Highlights:

-Fiber-Gel, a wholly-owned subsidiary which owns the exclusive, worldwide license to Z-Trim, (www.ztrim.com) an all-natural, carbohydrate-based fat replacement developed by the United States Department of Agriculture, began sample production of Z-Trim in April and has entered into mutual non-disclosure agreements and discussions with Nestle, McDonald's, Mitsubishi Australia, Manildra Mills, and Proctor & Gamble to pursue potential opportunities for Z-Trim

-The Company recently provided milk & dark chocolate samples containing Z-Trim to a multi-national food and candy company.

-The Company received a request from a large Canadian brewery to provide a low-calorie lager formula using Z-Trim.

-The Company also recently acquired the worldwide rights for use for the Mini-Raman Lidar technology. The Mini-Raman Lidar system was patented and developed by the Department of Energy at Brookhaven National Laboratory, and is a short-range tool to screen unknown biological, chemical, narcotic and hazardous substances without having to come in contact with them.

About Circle Group Holdings, Inc.

Circle Group Holdings, Inc. (OTC BB: CRGQ) (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 greg@crgq.com 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.