ARCTIC GROUP REPORTS STRONG 1998 SIX-MONTH RESULTS

The Arctic Group Inc. (AGP:ASE) recorded continued strong growth for the six months ended October 31, 1997 reporting earnings before income taxes of $1,267,877, an increase of 28% over the previous year, President Robert J. Nagy announced today. Sales revenues were $4,784,009 for the 6 months ended October 31, 1997, compared to $4,130,282 for the same period the previous year.

Based in Winnipeg, Manitoba, the Company produces packaged ice for both retail and industrial needs as well as distributing bottled water products. The Arctic Group has progressed with a strong strategy of acquisitions and consolidation in the North American ice industry. The Company currently has manufacturing and distribution centres in Winnipeg, Manitoba, Regina, Saskatchewan, Calgary, Alberta, and Vancouver, British Columbia.

During this second period, the Company has completed the acquisition of Crystal Ice of Regina, Saskatchewan as well as substantially advanced the due diligence process of Host Ice, a Texas based ice production and distribution company. Subsequent to the end of the second quarter, the acquisition of Host Ice was completed on December 8, 1997. As well, during the second quarter, the Company continued to identify suitable acquisition candidates and to have discussions with other interested participants in the ice industry.

Operating cash flow for the six months ended October 31, 1997 amounted to $1,158,947 resulting in operating cash flow per share of $0.090 (for the same period in 1996, operating cash flow per share was $0.112).

Net earnings after income taxes of $765,307 during period ended October 31, 1997 resulted in net earnings per share of $0.059 (1996 - $646,250, earnings per share $0.067). Per share amounts are based on the weighted average number of common shares issued and outstanding during the year. The weighted average number of common shares outstanding for the periods ended October 31, 1997 and October 31, 1996 was 12,866,667 and 9,667,854 respectively. Arctic Group President Robert Nagy expects continued strong revenue growth with the outlook being very positive. "The Arctic Group has made significant progress in its ability to communicate its growth intentions within the ice industry and the financial marketplace. We are committed to being an aggressive acquisition focused company and we anticipate continued strong growth in the coming year."

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.