MONTREAL -- (MARKET WIRE) -- 09/29/2006 -- 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.

Progress has been steady on all fronts and as planned. A more detailed update is available on our website where Dr. Cavasin posted a letter to our shareholders, please feel free to download it at your convenience.

Funding -- the second trench has been completed and the funds were entirely allocated towards engineering.

Facilities & Operations -- negotiations for our manufacturing facilities are now concluded and acquisition procedures are being undertaken. A new occupation period is now foreseen for the third week of October while the plant plans are being finalized.

Other activities -- Audited financial statements are foreseen to be ready before the end of November.

"As far as IR/PR is concerned, I have opted against this approach as I personally do not believe that it would increase our visibility in a positive manner. I believe I am serving our investors a lot better by allocating the funds that would be required for such publicity stunts towards operations instead. I will, however, make true on my promise to better respond to our investors by implementing our own IR and a specialist will be hired and brought up to date during the month of October," said Dr. Cavasin when asked about this subject.

Since our existing contracts already require the full capacity of three reactors, our marketing efforts have now been oriented towards licensing of our biomass conversion technology. Negotiations with A-M Polymers towards grouping the two contracts into one single agreement including a delivery schedule have been successful. Dr. Cavasin will be meeting M. Terki next week to finalize the new contract during his rigorous schedule throughout Europe and South-East Asia where he follows up on three developing prospects for licensing now engaged in serious talks.

Dr. Cavasin promised an in depth update of the developments upon his return.

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.