ARCTIC GROUP’S FIRST U.S. ACQUISITION EXPECTED TO INCREASE ANNUAL REVENUES BY 150%

One of Canada's largest ice manufacturers, The Arctic Group, Inc. today announced it is branching into the U.S. market with the signing of a Letter of Intent to purchase Host Ice, a Texas-based ice production and distribution company.

With centers in five cities in Texas and New Mexico, Host Ice's annual sales exceeded CDN $9,000,000 in the last fiscal year. These additional sales stand to increase The Arctic Group's revenues to CDN $15,000,000 annually.

The Arctic Group's mission statement is "to build an internationally recognized ice company by following a focussed acquisition and consolidation strategy" across North America.

This latest acquisition, The Arctic Group's first in the United States, establishes a strategic foothold which will allow the Company to pursue its major objective of expanding its base of operations in North America, said Company President, Robert J. Nagy.

"We are pleased that we have been able to acquire such a significant operation, both in terms of strategic location and in its potential for growth, "Mr. Nagy added. "We are continuing to identify acquisition candidates that show above average potential to build shareholder value."

Host Ice services West Texas and Eastern New Mexico and has distributed facilities located in Lubbock, Amarillo, Midland and San Angelo, Texas as well as Roswell, New Mexico.

The purchase price of Host Ice is undisclosed, with payments being a combination of cash and common shares, with an effective date of October 31, 1997.

Upon completion of the purchase, Host Ice principals, Mr. Don Johnson and Mr. Richard Johnson are expected to join the Arctic Group Executive Team and to serve on the Board of Directors. Both Don Johnson and Richard Johnson are well known and respected in the industry and will be valuable resources to further the consolidation plan.

For further information, call The Arctic Group TOLL FREE at 1-800-573-9237.

(Signed)
On Behalf of the Management and the Board of Directors of The Arctic Group Inc.,
Robert Nagy, President & CEO.

The Alberta Stock Exchange has not reviewed and does not approve or disapprove of the adequacy or accuracy of this release.