VERNON, B.C.,

Aquatic Cellulose (OTCBB : AQCI) announced today that it has submitted a proposal to Electronorte (EN), operator of Brazil’s Tucurui Dam, to establish a power co-generation facility at Tucurui Reservoir, converting forest canopy harvested by AQCI and other waste fiber into electricity for use in the region.

Co-generation and ElectroMab are exciting new elements of our growth strategy, said Gary Ackles, chief executive officer of Aquatic Cellulose. By cost effectively converting waste from our operations into an energy solution, we not only strengthen our commitment to environmental protection and economic and social development, but also enhance our growth plan by adding a significant new revenue stream. Sales from by-products of co-generation, including heat, steam, primary gases and charcoal, will further contribute to our revenue. It is truly a win-win for all parties involved.

ElectroMab offers a real solution to mitigating the adverse environmental impacts caused by flooding this once living rainforest. By removing all of the timber from Tucurui Reservoir, including the visible forest canopy, water quality, navigation, fish habitat, and dam efficiency will be significantly improved and greenhouse gas emissions effectively reduced. Our proposal also enables EN to fulfill its objective to clear the submerged forest safely without jeopardizing the lives of local divers.

Under the proposal, Aquatic Cellulose, through its EcoMab subsidiary, will supply waste fiber for the co-generation facility to produce over 50 Megawatts (MWh) of electricity. EN will provide logistical support as well as secure a long-term power purchase agreement. We have interested third parties who have committed to financing the entire project, said William Stephaniuk, chief operating officer of Aquatic Cellulose. The Preliminary Study, which we recently submitted upon EN’s request, indicates a strong feasibility for this project.

Said Andre Belanger, the consultant who commissioned the study, ElectroMab makes economic and environmental sense for Electronorte and Brazil. Although Tucurui Dam has over 8000 MWh of hydroelectric capacity, the ongoing drought in Brazil and energy demands from its developing economy have placed an even greater need for new cost-effective energy solutions. Electromab offers such a solution at a minimal capital investment.

Mr. Ackles concluded, While co-generation is an exciting evolution in our operating plan, it is but the beginning of a number of new initiatives we’re planning to venture beyond our core business and add further value to our shareholders. We’re excited by today’s announcement, and we look forward to sharing news of our other operating plans in the future.

About Aquatic Cellulose

Aquatic Cellulose International Corp. (OTCBB : AQCI) is a leading underwater timber and forest products company. AQCI operates in Brazil using the revolutionary Aquatic Timber Harvester, or ATH. The ATH is a commercial machine that utilizes patented robotic technology to safely locate, cut and recover timber under water without risking the lives of divers. Aquatic Cellulose specializes in the commercial recovery and processing of this nonliving resource to offer high-quality wood products that protect living forests and the environment.

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.

Aquatic Cellulose International Corp.

Aquatic Cellulose International Corp.

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