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ACMG News

MONTREAL, Aug 10, 2006 (MARKET WIRE via COMTEX) -- The following is an update presented by Alexander P. Cavasin, CEO of Alcar Chemicals Group Inc. (PINKSHEETS: ACMG), on the corporation's activities and progress.
Although news has been far and in between, progress has been steady on all fronts and several developments took shape as planned. A more detailed update is available on our website where I posted a letter to our shareholders, please feel free to download it at your convenience. This letter is the first of what I hope will become a new tradition for us, posting our progress on a regular basis and include answers to the questions you have about your company.

Funding -- we have opted for an alternative financing strategy by using private placements, cash for restricted shares, without callable secured convertible notes attached to these. By proceeding with multiple smaller trenches, we will minimize dilution while keeping the progress on schedule. A first contract has been finalized and the initial trench has been received, these funds were mainly dedicated to engineering with a 10% portion allocated to the new administration offices. Another significant trench will be due early September.

Facilities & Operations -- we concluded a long-term lease and will be moving into our new administration offices on the coming Monday. With savings on initial office set-up as well as significant long term cost savings, the decision to separate administration and operations is mainly based on economy.

The building selected for our manufacturing facilities is presently still under negotiations, I expect these to be completed within the next three to four weeks to allow us to remain on schedule with building occupation and installations as planned to begin during the month of September.

The decision to separate operations and administration resulted in almost half a million dollars in up-front cost savings.

Other activities -- with the forecasted financing structure, we were comfortable stating that the milestone for filing and becoming fully reporting had moved up about three months from late spring, early summer to early spring. We now believe that, with additional funds available for auditing and filing, we may be fully compliant several weeks ahead of schedule.

Our financials are presently being audited and we will post these on our site as soon as the auditing is completed.

We are presently negotiating IR/PR contracts and I am confident we will be in a position to reach an agreement with two firms within the next few weeks. This will allow us to make true on my promise to increase information flow and visibility for our company.

Marketing gave way to the intense negotiations and preparation activities which had to take priority, especially considering the two contracts requiring the full production capacity of three reactors. My meeting with M. Terki to group the contracts and develop a delivery schedule was postponed to the end of September.

About Alcar Chemicals 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 valorisation for the past decade, specifically petroleum-independent fuel and plastics resin production. It's 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.

Please visit our website: www.alcarchemicalsgroup.com

To hear more about ACMG from Alexander P. Cavasin go to: http://www.publiccoreport.net/featured/ACMG/company.asp

Important Information About Forward-Looking Statements

All statements and information in this news release, other than historical facts, are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. 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 and actual results may vary.

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.



Contact Info:
Homer Pateridis
Investor relations consultant
Tel [phone]
[e-mail] www.AlcarChemicalsGroup.com

SOURCE: Alcar Chemicals Grp



CONTACT: mailto:[e-mail]
http://www.AlcarChemicalsGroup.com


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