Alcar Chemicals Group, Inc. (fka ALCX)

[Art2Gecko]

OK this just back from Alex>>

Alex ([e-mail]) To: "'Art Gecko'" <[e-mail]>Subject: RE: Question about the technology.


Good Morning Art,

I believe that there are a few points that require clarification. I have developed (with my teams of course) several new technologies - always with "green solutions" in mind (even when working for gas turbine applications as a higher efficiency means less pollution) - some for which my name appears on the patents, inlcuding Pyrogenesis.

I started AlCar and working towards polymer based protective coatings back in 1993, while in parallel I did help create Pyrogenesis and lead their technology developments (if you talk to some of the employees you may find out more). Even though plasma conversion and waste treatment with plasma were my brainchild, I did quit Pyro back in 1998 to concentrate my efforts on Isocyanate free polyurethane and petroleum independent raw materials (mainly for polyurethane, epoxy and polyester resins). The technologies we developed are completely independent from the technologies I pursued at Pyrogenesis. I ALWAYS respected my non competition agreements (even when I not paid my royalties as conveened).

The technology we developed is completety independent from what I developed at Sulzer and Pyrogenesis. We do not use plasma to convert biomass into hydrogen and hydrocarbons. We convert sugars into polyols and hydrocarbons (ethanol). We have been working closely with our patent lawyers and (I am sure you understand and appreciate the point) sometimes new technologies are not protected by patenting, at least not as long as capitaliztion of the project is secured. In our case we did our patentability studies and deposited provisional - the protection is there in the event anyone else tryes to copy or patent (like VCs and institutionals which had access to the technology) - we are now filing as the project financing is coming together.

A few more points that require clarification so that any misunderstandings are avoided:

- our new facility is under negotiations right now (that is why we are posting news about it as not to affect the negotiations)
- we did sell all polymer formulation equipment to a longstanding customer, after which we did shut down the old plant (would have been way too small anyways)
- we are presently in the engineering phase and the first reactor will be up and running in approximately 9 months
- no we do not take anymore private placements as our financing is complete
- the study from CLD was ordered and paid for by our VCs, the consulting firm we hired evaluated it higher (people may do their own math)
- the patents have not been finalized (our lawyers did all the research necessary and filed provisional patents, the process for public patent filing is underway)
- and yes, we do keep a few details on the closed-loop system secret

I hope this answers your main questions and thank you for your interest and continued patience. I promise I will do anything in my power to push for the website opening before the end of the week.

Thanks

Alex.

Alexander P. Cavasin,

CEO

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