ARCTIC GROUPS FIRST U.S. EXPANSION ACQUISITION EXPANDING TEXAS OPERATIONS

The Arctic Group today announced that the Company's first U.S. acquisition, Host Ice, a Texas-based ice production and distribution company, has acquired for cash substantially all of the assets, operations and goodwill of Lubbock Ice, Inc. also of Texas.

Host Ice currently operates five centres across Texas and New Mexico. The Lubbock acquisition further strengthens the Company's base of operations in the area, and is expected to add approximately CDN$300,000 to the Arctic Group's annual sales, according to Host Ice President, Mr. Don Johnson.

"Due to economies of scale, a substantial portion of the revenues from this acquisition should accrue to operating profit," he said.

The Arctic Group is one of Canada's largest ice companies with manufacturing and distribution centres in all four Western Canadian Provinces. Recently the Company branched into the U.S. market with the signing of a Letter of Intent to purchase Host Ice, with an effective date of September 30, 1997.

The acquisition established a strategic foothold for the Company in the United States leading towards its corporate goal of expanding its base of operations in North America.

"The Lubbock Ice transaction is an excellent example of how the Company's consolidation strategy is working to improve shareholder value," said Arctic Group Chairman of the Board and CEO, Mr. Robert Nagy.

The Arctic Group Inc. is committed to building an internationally recognized ice company by focusing on an aggressive strategy of growth through acquisition and consolidation of the ice industry.

For further information, call The Arctic Group TOLL FREE at 1-888-573-9237.

(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.