ARCTIC GROUP CONTINUES U.S. EXPANSION WITH KANSAS DEAL

The Arctic Group Inc. announced today that it has signed a Letter of Intent to acquire the assets and operations of a leading Kansas-based ice producer and distributor, Party Pak, Inc.

Based in Wichita, Kansas, Party Pak, Inc. has annual sales of approximately CDN$2.25-million. As part of the Arctic Group's strategy of consolidation in the North American packaged ice industry, this next acquisition stands to increase the Company's overall annualized gross revenue to approximately CDN$21-million.

This acquisition stands to significantly expand The Arctic Group's foothold in the United States market. Party Pak Inc. services an area adjoining that of Clinton Ice of Clinton, Oklahoma and Sheppard's C&C Ice of Perry, Oklahoma - two companies that signed Letters of Intent with The Arctic Group just
last week.

The acquisition of Party Pak, Inc. will be made through a combination of cash and issuance of common shares. Subject to final due diligence and regulatory approvals, the transaction is scheduled to close early in 1998.

"We are pleased to add Party Pak, Inc. to our list of U.S. acquisitions to date," said Robert Nagy, The Arctic Group Chairman and CEO. "This deal will strengthen our position in this region and will contribute toward our goal of becoming the recognized brand name in the North American ice industry."

The Arctic Group Inc. is one of Canada's largest ice companies and is committed to building an internationally recongnized ice company by focusing on an aggressive strategy of growth through acquisition and consolidation of the ice industry in North America.

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, Chairman & CEO.

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