MONTREAL -- (MARKET WIRE) -- 05/16/2006 -- Alcar Chemicals Group Inc. (OTC: ACMG) announces today that it has received, signed and accepted a memorandum of understanding from A-M Polymer Industries Ltd. for equipment acquisition and licensing. The details are presently being discussed.

"A-M Polymer Industries is a longstanding customer who has been purchasing our polymer resins for over 6 years," said Alexander Cavasin, CEO of Alcar Chemicals Group. "Mr Terki, CEO of A-M Polymers, has announced the intention of acquiring formulation equipment and licensing our technology with exclusivity for the Middle-East. We are now discussing licensing terms and I am expecting results very shortly. This could easily become a USD $10M yearly contract," further added Mr. Cavasin.

About Alcar Chemicals Group

The Alcar Chemicals Group (OTC: 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. 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.