ARCTIC GROUP CLOSES REGINA ACQUISITION

Leading Canadian ice distributor The Arctic Group Inc. announced today the closing of its acquisition of all outstanding shares of Regina-based Jacyn Enterprises Ltd., operating as Crystal Ice, completed with an effective date of June 30, 1997.

Crystal Ice President, Mr. James Hughes, said Crystal Ice is excited to become part of The Arctic Group's dynamic, growing team.

Crystal Ice, established in 1960, is the leading ice producer in Southern Saskatchewan. In addition to packaged ice sales, the company is also involved in water and beverage distribution to both homes and businesses. No changes to management and/or existing operations at Crystal Ice are contemplated.

"This has strengthened our foothold in Western Canada considerably," says Arctic President and CEO Robert Nagy. The Arctic Group Inc. is Western Canada's largest ice production and distribution group with centres in Manitoba (Winnipeg), Saskatchewan (Regina), Alberta (Calgary), and British Columbia (Vancouver).

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.