Aquatic Cellulose And Timber Holdings Ltd. Announce Multimillion Dollar Exclusive Supply Agreement.

Business Editors

VERNON, BRITISH COLUMBIA--(BUSINESS WIRE)--April 5, 2001

AquaticCellulose (OTCBB:AQCI)

Aquatic Cellulose announced today it has entered into a multimillion dollar exclusive supply agreement with Timber Holdings Ltd. (THL) of Milwaukee, WI.

The two companies will launch this agreement via the first phase of boardwalk reconstruction at Asbury Park, NJ. THL, which has secured Aquatic as a "green" material supplier, will place into the Asbury project as much production of Aquatic's reclaimed material as it is capable of delivering.

Under the agreement, THL will purchase total production of Aquatic's underwater harvested Ipe hardwood. To secure the agreement, THL has placed a series of decking orders totalling over $1,500,000. The Company spokesperson stated it has begun processing these orders for shipment to the customer via port of Belem in Brazil.

Gary Ackles, CEO, stated, "The agreement with THL represents another step in our successful product transition and is further testament to the environmental nature and quality of our source. Aligning our lumber products with companies that are well positioned in key markets is a long-term strategy we feel confident will lead to greater sales, distribution, and awareness. We are looking forward to supplying Asbury Park with quality reclaimed Aquatic decking, as well as enhancing relationships with THL and our other valued customers."

About Aquatic Cellulose

Aquatic Cellulose International is a leading supplier of environmentally friendly lumber made from submerged standing timbers. These timbers were inundated many years ago as a result of dam construction. Aquatic currently harvests in the Amazon at Tucurui Lake utilizing patented ATH (Aquatic Timber Harvester) technology. The ATH, operated exclusively by Aquatic, is a robotic based harvesting system that performs underwater cutting/retrieving tasks with greater efficiency and safety than conventional diver based methods. Aquatic specializes in the reclaiming and processing of this lost resource to provide quality wood products without negatively impacting living forests.

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, unforeseen 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.