ARCTIC GROUP TO ACQUIRE FIVE LEADING ICE COMPANIES IN QUEBEC AND ONTARIO

Winnipeg, Manitoba – The Arctic Group Inc. announced today that it has signed Letters of Intent to acquire all issued and outstanding shares of five different leading ice companies based in Quebec and Ontario.

The Arctic Group will acquire the following companies:

• Glace Carnaval (1983) Inc., serving Quebec city and surrounding area,
• Thibault & Brunelle Ltée, providing services in Montreal and surrounding communities,
• Capital City Ice Company Ltd., serving the Ottawa/Hull region,
• 1179554 Ontario Inc., which operates as ICECO and serves the Greater Metropolitan Toronto area, and
• Great Lakes Ice Ltd. Serving Chatham, Windsor, Sarnia, Barrie and the Georgian Bay area of Ontario.

The combined revenue of these companies is in excess of CDN$13,000,000. These acquisitions stand to increase the Company’s overall annualized gross revenue to approximately CDN$42,000,000.

“The acquisition of these companies will further strengthen our Company’s position in the packaged ice industry in North America,” said Robert Nagy, The Arctic Group Chairman and CEO. “In addition to its substantial U.S. holdings, this will give The Arctic Group representation from Quebec City to Vancouver.”

The purchase price for these acquisitions is undisclosed at this time, but the purchase is to be through a combination of cash and shares. Subject to final due diligence and regulatory approvals, the transactions are scheduled to close April 30, 1998.

Management from these companies will bring extensive industry experience and knowledge to The Arctic Group and will contribute significantly towards the Company’s consolidation plans.

The Arctic Group Inc. is now Canada’s largest ice company. It 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.