ARCTIC GROUP SALES APPROACH CDN $50 MILLION WITH ACQUISITIONS IN TEXAS & NEBRASKA

The Arctic Group Inc. announced today the Company has signed Letters of Intent to acquire the assets and operations of Texas-based ice company, Texas Ice Inc. and the shares of Valley Ice Co., the dominant ice manufacturer/distributor in Nebraska.

Texas Arctic Ice Inc., based in Wichita Falls, Texas, has annual sales of approximately CDN$900,000. This latest acquisition will be completed through a combination of cash and vendor take-back financing. Subject to final due diligence and regulatory approvals, the transaction is scheduled to close in 45 days.

Valley Ice Co. has production facilities in Omaha and Lincoln, Nebraska and distributes ice in Nebraska, Missouri and Kansas. It has annual sales of CDN$6,300,000. The acquisition will be a cash purchase of all Valley Ice Co. shares and is scheduled to close in 90 days subject to final due diligence and regulatory approvals.

The Arctic Group's foothold in the U.S. market will be significantly enhanced by the purchase of these two companies. The operations of Texas Arctic Ice. Will be integrated with Host Ice, an earlier purchase.

"The acquisition of Texas Arctic Ice and Valley Ice Co. will strengthen our Company's position in the packaged ice industry in Texas, and expand The Arctic Group's presence into Nebraska, Missouri and Kansas," said Robert Nagy, The Arctic Group Chairman and CEO. "The volume of recent transactions speaks highly of the acceptance of our growth philosophy by industry members."

The Arctic Group Inc. is Canada's largest ice company 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.