SOURCE: Alcar Chemicals Grp

March 01, 2007 12:56 ET

Update and Clarification From the CEO

MONTREAL -- (MARKET WIRE) -- March 1, 2007 -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) releases an update from the CEO and a clarification on its relation with Bajaj Hindusthan Ltd (BHL).

I am addressing the issue of our work with BHL personally as I do take any misunderstandings involving our credibility very seriously. We are, in fact, in the process of setting up an optimization project to maximize efficiency when using the entire sugar cane plant, from sugar juice through pit to the bagasse. This optimization is being undertaken after discussions between myself and the General Manager of BHL's Chemical Division and Bajaj eco-tec products ltd. personally have developed into an understanding on the long-term priorities BHL has envisioned.

BHL is a very large corporation and it is possible that some "wires were crossed" resulting in their communications department falling behind on their intelligence gathering. However, I have been assured that BHL will provide a statement very shortly.

I would also like to take this occasion to apologize for this misunderstanding and to thank our long-term shareholders for the patience and support demonstrated over the long period where updates were not as forthcoming as expected. I hope you are satisfied with Steven's job in keeping you up to date and informed on a constant and consistent basis without the typical fluff.

I believe he has been handling the monumental task rather well and will continue to do so as we enter a completely new phase now that we have a serious and dedicated group as partners, which have already demonstrated their dedication to our technology and all its future possibilities as much as their dedication to clean energy solutions and on improving our environment.

I will be meeting our new partners in two weeks and let me assure you that we will be finalizing and signing a definite agreement without further delays.

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.

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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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