SOURCE: Alcar Chemicals Group, Inc.

February 06, 2007 12:20 ET

Alcar Chemicals Group, Inc.: Update From the CEO

MONTREAL -- (MARKET WIRE) -- February 6, 2007 -- Alexander P. Cavasin, CEO of Alcar Chemicals Group, Inc. (PINKSHEETS: ACMG), issues an update on the latest developments.

Facility -- we have had intensive negotiations concerning the acquisition of our new facility and our agent is presently preparing a final counter offer which, according to the latest indications, will be accepted.

Reactors -- we have weeded through the multiple offers for contracting the reactor manufacturing and have selected the firm. We expect to assign the contracts as soon as the financing is secured.

Contracts on hand -- we have now been able to set a new date and delivery schedule with A-M Polymers, set to begin in September 2007. This a mutually beneficial agreement as it will allow us the necessary time take the reactors online while A-M Polymers commissions the resin manufacturing plant which has fallen 3 months behind schedule.

Licensing -- we are actively working with several corporations who have been courting us for licensing of our technology. Our lab set-up to optimise our technology for use of by-products and wastes from the sugar manufacturing process as feedstock, undertaken as a development project with Bajaj Hindusthan Ltd., has sparked the interest of the SEA consortium. Our future partner has committed to participate in this optimization process by contributing half of the costs involved and has undertaken the necessary steps to transfer the funds this same week in order to accelerate the process.

Financing -- we will be releasing the details we are allowed to make public at this stage tomorrow to keep our shareholders updated on this exciting new development. An LOI is due to be signed on February 15th on location of the first ethanol site in Thailand.

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.

Important Information About Forward-Looking Statements

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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