AQCI Enters Into Strategic Alliance With U.S. Wood Product Manufacturer And Distributor.

Business Editors

VERNON, British Columbia--(BUSINESS WIRE)--March 31, 2000

Aquatic Cellulose International Corp. (OTCBB:AQCI)

As part of an aggressive marketing strategy designed to penetrate the mega-billion dollar U.S. home improvement and home furnishing markets, AQCI, the technology leader in underwater logging, has entered into a strategic alliance with a U.S. manufacturer and distributor of wood products for distribution of AQCI's exotic hardwoods to the U.S. market.

In releasing this announcement, Gary Ackles, Chief Executive Officer of AQCI stated, "This alliance represents a milestone in our company's history as it marks the introduction of our unique, environmentally friendly wood products to the huge U.S. market."

"The alliance has already resulted in a first order to AQCI in a sum exceeding a quarter of a million U.S. dollars."

"The availability to AQCI of a U.S.-based manufacturing facility, sales staff, and our strategic partners extensive customer base which includes wholesalers and major retailers of wood products will greatly facilitate AQCI's entry and penetration of the U.S. outdoor furnishing, home furnishing and home improvement markets."

Mr. Ackles concluded his announcement by stating: "Representatives of AQCI are departing today for Brazil to meet with the CEO's of two Brazilian processing plants. During the next several business days, AQCI will provide additional details regarding this strategic alliance and its plans to further increase its Brazilian production."

About the Company

Aquatic Cellulose International Corp. is a growth-stage, technology-based company, that is retrieving what was once considered a lost natural resource. That resource is aquatic timber. Gary Ackles, President and CEO of Aquatic Cellulose International Corp., has developed and patented a unique robotic technology for cutting and retrieving this timer and has granted exclusive rights to Aquatic Cellulose for use in underwater logging. This new "diverless" system, dramatically increases production capabilities to the point that large scale harvesting operations are now commercially viable. As a result, Aquatic Cellulose is positioned at the extreme forefront of an emerging industry worth untold billions in untapped timber reserves. In November of 1999, the company began its first such large scale operation beneath the Tucurui reservoir in Amazon region in northern Brazil. Estimated at over $US 600,000,000, this multi-phase project is expected to take up to twenty years to complete.

In February of 2000, ACIC debuted 'THE AMAZON LINE' at the annual National Association of Music Merchandisers (N.A.M.M.) Convention in Los Angeles. 'THE AMAZON LINE' is a unique product line of exotic tropical hardwoods which are being marketed to a wide range of high end industries from musical instruments to fine furniture to precious works of art. The company has secured the Internet domain name www.amazonline.com and is in the process of building this web site for e-commerce.

Aquatic Cellulose is proud of the fact that every tree recovered from these depths is, in essence, one less that needs to be cut from the rain forest. With over 38,000 dams as potential sites for future operations, not to mention countless lakes, rivers and tributaries, Aquatic Cellulose is forging a new age of futuristic logging through superior technology and a strong commitment to preserving natural resources and lives. For more information about this fascinating company, please visit our new web site at www.aquaticcellulose.com and join our growing e-mail list.

This press release contains statements that constitute forward statements, as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that may cause or contribute to such differences include, among other things, the Company's dependence on one customer, seasonality of the Company's retrieval business and risk of future losses from operations. Other risks and uncertainties include changes in business conditions and the economy in general, changes in governmental regulations, unforseen litigation and other risk factors identified. The Company undertakes no obligation to update these forward-looking statements for revisions or changes after the date of this press release.

The NASD OTC has neither approved nor disapproved of the information contained herein.