THE ARCTIC GROUP INC. TO CONTINUE U.S. EXPANSION WITH ANOTHER TEXAS ACQUISITION

The Arctic Group Inc. announced that it has signed a Letter of Intent to acquire the assets and operations of a Texas based ice producer and distributor, Lakeview Ice Inc.

Based in Comanche, Texas, Lakeview Ice Inc. has annual sales of approximately CDN$850,000. 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$22 million.

This acquisition again expands The Arctic Group's foothold in the United States market. Lakeview Ice Inc. is located southwest of Dallas and further services an area adjoining that of Host Ice, a recently acquired company operating throughout West Texas.

The acquisition of Lakeview Ice Inc. will be a cash transaction. Subject to final due diligence and regulatory approvals, the transaction is scheduled to close in March 1998.

"The Lakeview acquisition will further strengthen our Company's position in the packaged ice industry in Texas and its surrounding regions," said Robert Nagy, The Arctic Group Chairman and CEO. "As we have done in Western Canada, we are making significant progress towards establishing our objectives in this part of the United States."

The Arctic Group Inc. is one of Canada's largest ice companies and 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 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 disapprove of the adequacy or accuracy of this release.