ARCTIC GROUP REPORTS SOLID RESULTS IN 1998 THIRD QUARTER

March 31, 1998 - Winnipeg, Manitoba – Building on its significant expansion through 1997, The Arctic Group Inc. Chairman and CEO, Robert Nagy announced today the Company has continued its successful strategic growth plan during the third quarter ended, January 31, 1998.

Based in Winnipeg, Manitoba, the Company produces packaged ice for both retail and industrial needs as well as distributing bottled water products. In early December, as previously announced, the Company completed the purchase of Plainview Ice (operating as Host Ice) of West Texas. The completion of this transaction established The Arctic Group’s entry into the large United States market.

Net earnings for the nine months ended January 31, 1998 amounted to $263,052 resulting in earnings per share of $0.019 (1997 - $527,155, earnings per share $0.054). Per share amounts are based on a weighted average number of common shares issued and outstanding during the year. The weighted average number of common shares outstanding for the period ended January 31, 1998 and January 31, 1997 was 13,875,581 and 9,778,569 respectively.

Earnings before income taxes, for the nine months ended January 31, 1998, amounted to $496,175 compared to $769,885 for the same period in the previous year. The timing of acquisitions completed during the off peak season was a significant contributor to the reduction of earnings.

Operating cash flow for the nine months ended January 31, 1998 amounted to $915,759 resulting in operating cash flow per share of $0.066 (1997 - $959,636, operating cash flow per share $0.098). Again these share figures are based on a weighted average number of common shares issued and outstanding during the period.

During the fourth quarter of this fiscal year it is The Arctic Group’s objective to significantly expand the company’s revenue base prior to the upcoming “ice season”.

“The business of manufacturing and distributing ice is largely a seasonal business with a significant portion of annual revenues occurring during the period of May to September,” Robert Nagy said. “ It is our objective to position The Arctic Group with a substantial corporate revenue base for the start of the upcoming summer season.”

According to Nagy, the Company will also continue to seek further acquisition opportunities and expects to increase sales and earnings and build long-term value for shareholders.

As Canada’s largest ice company, The Arctic Group Inc. 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.