SOURCE: The Alcar Group

April 20, 2006 09:00 ET

Alcar Chemicals Group's Proprietary EnviroEnergy Technology Receives Independent Evaluation at $85 Million USD

MONTREAL -- (MARKET WIRE) -- April 20, 2006 -- Alcar Chemical Group Inc. (OTC: ACMG) announces today the completion of an independent evaluation of its proprietary technology to produce plastic raw materials, Ethanol and Bio-Diesel based on renewable resources. The independent evaluation was performed by CLD and they have established the value at $85 million USD, translating into approximately $0.90 per share on a fully diluted basis.

"ACMG's proprietary technology represents today's most economical and advanced manufacturing process for plastic raw materials, ethanol and bio-diesel," said Alexander Cavasin, President and CEO of ACMG. "The yield output of our process alone will create immediate impact in our industry and we expect many more large multi-nationals to be adopting and licensing our technology over the coming months," further added Mr. Cavasin.

The proprietary technology developed by ACMG is a process, based on renewable natural resources, where it can use inexpensive non-food-crop and generic organic waste as feedstock, to produce plastic raw materials, ethanol and bio-diesel. ACMG's Process significantly reduces production cost and obtains yield rates that are significantly higher than the industry standard.

About The Alcar Group

The Alcar Group represents a significant market opportunity due to a serious worldwide supply shortage of raw materials for polymers, a growing shortage estimated to reach over 6 million tons in 2006. The market price for the materials in question vary between $1,000 and $3,000 per metric ton and the Alcar Group has developed a patented process and bioreactor which allow production at costs savings of up to 40% when compared to current production methods, translating in gross margins of over 50%. With the planned expansion, the AGI production process will reach a total capacity of 120,000 tons annually of economical and environmentally friendly materials for polymers.

The Alcar Group Inc. (AGI) develops innovative, patented methods for petroleum-independent fuel and plastics resin production (e.g. polyurethane) that significantly improve the offerings of its customers in the automotive, building products and recreational sectors. AGI operates three divisions, Alcar Advanced Materials Corp., which manufactures and distributes various proprietary non-petroleum-based plastics and coating systems, Alcar Advanced Energy Systems Corp., which will manufacture and distribute high-purity non-petroleum-based ethanol and diesel fuels and Alcar R&D, an advanced materials research and development center.

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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