Chairman's Letter

November 23, 2010

To:      Shareholders

From: C.E. Rick Strattan

Chairman

An Integrated In-house Investor Relations (Triple IR) program is under development and is being tested in the 4^th Quarter and if proved effective, will continue in 2011,.  The board, led by the 21^st century Tate, has finally prevailed on the tightwad chairman to overcome his aversion to spending on such activities, and to create and staff this function within CTDH.

With the release of the very forward-looking third quarter 10-Q that shows near record sales for the past quarter, an 8% reduction in salary expenses over the same 9-month period in 2009 (even though we picked up a new executive salary), and a strong balance sheet.  As usual, we did show an overall accounting loss due to non-cash expenses and greater increased professional legal and auditing fees.  With a quarter like the one we just had, we would normally show a good chunk of cash going into the bank.  Why would any self-respecting CEO/Chairman want to do that at current bank rates?  Well not me!  We continue to add to the $400,000 we’ve already put into the 7,200 square foot new Pulse Drying plant over by the University of Florida Research Park in Alachua, Florida.

Here in a nutshell, is why the company is investing like it is:

So far (up to November 15) the company has sold 376 Kg of Trappsol® products for $550,000; that’s just under $1500/kg.  In that same period we have sold 3.5 Kg of Aquaplex® products for $76,700; that’s just under $22,000/Kg.  I ask you, long-suffering shareholders, which product should we concentrate on?

Well, that’s what we are doing!  That’s why NanoSonic Products, Inc. (NSP) was created; why Dr. Jeffrey Tate, very likely one of the most knowledgeable Pulse Drying experts (not to give too much credit – it is a rare bird) in the world was hired.

By being able to make our own Aquaplex® V-A CD complexes (we currently have them made for us by a much less cost-effective manufacturing procedure), NSP will be able to sell them for considerably less than $22,000 a kilogram to maintain an even better competitive price, but more importantly, supply them in large quantities to large companies in many industries to create even greater revenues.  One metric ton of an Aquaplex® product selling at $5,000 per kilogram would result in $5MM of revenue.

OK! OK! So there’s a fly in that ointment.  What if the demand stays at 4 Kg’s?  I don’t think so.  Ask Procter and Gamble (Febreeze® and Bounce®) how many kg’s of the V-A CD complex they use in those two products.

Not to worry, we’re not abandoning Trappsol®.  Oh no, not a product that now accounts for 87.8% of the company’s revenue.  After all, a product line that has 3 customers that buy more than $70,000 per year; 7 customers that buy more than $30,000 per year; and finally 10 customers that buy more than $10,000 per year shouldn’t be trifled with.  And, one of the customers in the >$30,000/year category is likely to jump into the $100,000 category before the year is out.  Oh my, we even picked up a brand new account mid-year that is already in the >$30,000/yr category and will contractually be in the >$100,000/yr category in 2011.

We at CTDH consider the Trappsol® line the largest un-mined vein of gold in the world.  With Trappsol® CD as part of the new Ferrazo-2B oil recovery and remediation product line, we expect Trappsol® volume and sales to continue to be the primary revenue engine for the short- to mid- term until the NSP plant reaches its target of 200 days of annual production.  When Trappsol® Cyclo™ gets its NDA approval; it will be interesting to see which product line will produce the most revenue.

Ferrazo Environmental Technologies, Inc. has been created to promote and manage the Ferrazo-2B product line.  Ferrazo-2B is by far the safest material shown by the testing used to qualify for EPA’s National Contingency Plan (NCP) list.  The NCP filing is in progress and we expect to be on the list before the end of the year.

Sphingo Biotechnology, Inc. is also newly created to manage the Trappsol® Cyclo™ development into a prescription drug and to promote Cyclo™ as the ameliorative treatment for other diseases that may involve cholesterol transport dysfunction, like adult Alzheimer’s, coronary artery disease, AIDS, and diabetes.

Those of you that have persevered with CTDH, now is the time to be building up your ownership position.  We at CTDH expect March of 2011 to be a coming out time for the company.

Respectfully Submitted,

C.E. Rick Strattan

President/Chairman

CTD Holdings, Inc.

This news release contains “forward-looking statements” that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  You are cautioned that such statements are subject to risks and uncertainties that could cause future circumstances, events or results to differ materially from those projected in the forward-looking statements.  The above forward-looking statements are made as of the date above; CTD Holdings, Inc. accepts no specific responsibility for updating such statements.