SOURCE: Alcar Chemicals Grp

February 28, 2007 10:08 ET

Alcar Chemicals Group Releases Financial Projections Highlighting Over USD 1.4 Billion in Revenues Within Five Years

MONTREAL -- (MARKET WIRE) -- February 28, 2007 -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) has now released its revised financial projections.

The company stated that it has released its updated financial projections available with the revised business plan, downloadable through the company's website. The new pro-forma financials outline the projected future performance, expected to reach nearly one and a half billion dollars in yearly revenues by 2011, made possible through the injection of 282 million dollars by Siam Renewable Energy Group, which is acquiring 55% of the company. The website also contains a thorough update of the company's FAQ section. Shareholders are encouraged to visit the updated website and examine the presented information, designed to answer all relevant questions.

Siam Renewable Energy Group has released an initial amount for engineering prior to the signing of a definite agreement to accelerate the maximizing of process efficiency towards the use of by-products from sugar manufacturing as feedstock. The optimization targets Bajaj Hindusthan and M&G Group, both corporations manufacturing from sugar cane and with whom the company envisions long term licensing agreements.

                                         2007   2008   2009   2010   2011
                                         ------ ------ ------ ------ ------
EPS                                      $ 0.02 $ 0.23 $ 0.94 $ 1.74 $ 2.93
                                         ------ ------ ------ ------ ------
P/E * 15                                 $  0.3 $  3.4 $ 14.2 $ 26.0 $ 43.9
                                         ------ ------ ------ ------ ------
P/E * 25                                 $  0.5 $  5.7 $ 23.6 $ 43.5 $   73
                                         ------ ------ ------ ------ ------
Free Cash Flow per Share                        $ 0.02 $ 0.62 $ 1.48 $ 2.72
                                         ------ ------ ------ ------ ------
Shareholders' Return Analysis.
"With the funds now in escrow and a definite agreement to be signed on or before March 21st 2007, we have taken the proverbial bull by the horns and have assigned the contracts for the construction of four reactors," said Dr Cavasin. "Only three reactors were planned, but an additional reactor will initially be used to prove the viability and economics of our process when used for ethanol synthesis and will later be switched to polyols production to insure the quantities of our contractual obligations will be met without delays," further added Dr Cavasin.

The company stated that, after some unforeseen delays have slowed the auditing process, its audited financials will be finalized and made available very shortly. The company expects to be in the position to apply for and advance to the NASD OTCBB and or NASDAQ Small Cap within the current year.

About Alcar Chemicals Group Inc.

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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