SOURCE: Alcar Chemicals Group

February 01, 2007 11:30 ET

Alcar Chemicals Firms Up International Licensing Program

MONTREAL -- (MARKET WIRE) -- February 1, 2007 -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) announces today that it is firming up its international licensing program with intensified negotiations in South East Asia.

According to the company, Alcar Chemicals Group is being courted by a number of companies based in Europe, India and South East Asia to license its proprietary technology for the manufacturing of ethanol and polyols from biomass such as non-food crop as well as agricultural and forestry waste. Alcar Chemicals Group was asked to the negotiating table by an Asian licensor with plans for an initial four full scale ethanol plants in Thailand and Malaysia, where a vast amount of waste from sugar cane, rice and other fast growing crop still remain completely unutilized. The potential licensor plans the production of ethanol from cellulose under a licensing agreement using the proprietary technology developed by Alcar. In addition to licensing, the interest was expressed to participate in the funding process in order to accelerate the scale up engineering and implement the planned facilities.

"A select group of capital venture, technology funds and private investors from South East Asia have formed this consortium with whom I had initial contact several months ago and today, after a long evaluation period, have announced that they feel confident enough in our technology to finalize a proposal to license it," said Dr. Cavasin, CEO of Alcar Chemicals Group.

About The Alcar Group

The Alcar Chemicals Group (PINKSHEETS: ACMG) represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers as well as an increased requirement for ethanol and biodiesel. ACMG has been concentrating on innovative methods for biomass (forestry waste, agricultural waste and non-food crop) valorization for the past decade, specifically petroleum-independent fuel and plastics resin production. Its proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel, allowing production at cost savings of up to 40% when compared to current production methods.

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All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.

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