SOURCE: Alcar Chemicals Group

February 26, 2007 15:37 ET

Alcar Chemicals Group Receives Confirmation of Funds Placed in Escrow

MONTREAL -- (MARKET WIRE) -- February 26, 2007 -- Alcar Chemical Group Inc. (PINKSHEETS: ACMG) announces that it has received confirmation of the initial investment from Siam Renewable Energy Group Ltd being placed in Escrow.

The company stated it has received confirmation that the initial investment -- injected by Siam Renewable Energy Group in the form of a convertible loan bearing no interests or capital repayments for 24 months and automatically convertible into shares at the fixed price of $1 per share with the beginning of operations of the first plant -- has now been placed in escrow, awaiting final closing of the definite agreement for release.

"I am highly pleased with the quick response of our new partners which once more have proven to share our sense of urgency in commercializing our amazing technology," said Dr. Cavasin, CEO of Alcar Chemicals Group. "With the definite agreement in the respective lawyers' hands for final review I expect this to be signed very shortly," further added Dr Cavasin.

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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