ARCTIC GROUP ADDS IOWA TO U.S. EXPANSION

The Arctic Group Inc. announced today that it has signed a Letter of Intent to acquire the assets and operations of a leading Iowa?based ice producer and distributor, Krieg Boys Ice. Based in Dubuque, Iowa, doing business as Krieg Boys Ice, D.K.E. Enterprises Inc. Has annual sales of approximately CDN$5.8?million. As part of The Arctic Group's on?going 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$28 million.

Krieg Boys Ice is the dominant ice company in Iowa.

The acquisition of Krieg Boys Ice 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 on or before April 30th, 1998.

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.