MONTREAL -- (MARKET WIRE) -- 06/27/2006 -- Alcar Chemicals Group Inc. (PINKSHEETS: ACMG) announces that it has selected the engineering firm Genivar as general contractor for its first biomass conversion facility.

Following careful examination of several options ACMG has selected the Canadian engineering firm Genivar to complete engineering and construction of its first biomass conversion facility. "After six months of preliminary engineering work with the consulting firm and in light of the expertise demonstrated, contracting the full project to Genivar for a turn key delivery was the logical and most sensed choice" -- said Alexander Cavasin, CEO of Alcar Chemicals Group -- "I am confident that the team from Three-Rivers we are working with will deliver the expected results on schedule," further added Alexander Cavasin.

When asked about a more detailed update, Alexander Cavasin had the following to say: "The project is progressing on schedule with a closing for the building expected in August. Reactor construction and installation will commence in September and is expected to be completed by the end of spring 2007 with a quick ramp-up of polyol production to fill our orders on hand. Our planned ethanol reactor is now expected to come online by summer 2007, a full six months ahead of schedule. Furthermore, the required funding to cover additional administration fees for auditing and reporting is now budgeted and is expected to become available by early August, which would allow us to become fully reporting by spring 2007, three months ahead of the original schedule. Additional developments on our organizational structure include a planned reactor manufacturing facility within the US and a related franchising plan for the technology to crop producers, allowing them to valorize the waste by converting it into ethanol."

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. 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.

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.