ARCTIC GROUP ANNOUNCES $6-MILLION FINANCING

The Arctic Group Inc. today announced that the Company has engaged Wellington West Capital Inc. of Winnipeg, Manitoba to raise up to $6-million by way of a five-year convertible debenture on a "best efforts basis."

Subject to final approval by the Manitoba Securities Commission, it is anticipated that this offering will close on or before November 14, 1997.

Proceeds of this financing are to be used to complete the previously announced acquisition of "Host Ice", a Texas-based ice production and distribution company. "Host Ice" currently operates five centres across Texas and New Mexico.

"Completion of this financing transaction will provide The Arctic Group with the funds to complete its acquisition of Host Ice and provide additional operating capital to further pursue its acquisition program," said Arctic Group Chairman of the Board and CEO, Mr. Robert Nagy.

The Arctic Group Inc. is one of Canada's largest ice companies with manufacturing and distribution centres in all four Western Canadian Provinces.

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 Inc. 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.

Telephone: (204) 772-2473