THE ARCTIC GROUP INC. - U.S. EXPANSION AND ACQUISITION STRATEGY ON TRACK WITH COMPLETION OF KANSAS DEAL

The Arctic Group Inc. announced today that it has completed the transaction to acquire the assets and operations of Party Pak, Inc., a leading Kansas-based ice producer and distributor.

The acquisition of Party Pak, based in Wichita, Kansas, is effective March 17, 1998 and has been made through a combination of cash and the issuance of common shares of The Arctic Group Inc.

"We are pleased to announce the addition of this group to our growing list of U.S. acquisitions to date," said Robert Nagy, The Arctic Group Chairman and CEO. "The completion of this acquisition strengthens our position in this region and furthers the success of The Arctic Group's strategy of consolidation in the North American packaged ice industry."

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.