THE ARCTIC GROUP INC. PROCEEDS WITH $25,000,000 PRIVATE PLACEMENT OF SPECIAL WARRANTS

The Arctic Group Inc. Chairman and CEO, Robert Nagy, announced today that the Company has formally agreed to undertake a private placement of up to 10,000,000 special warrants for gross proceeds of $25,000,000.

The Special Warrants are exercisable into up to 10,000,000 common shares at no additional consideration and 10,000,000 common share purchase warrants that are exercisable into one common share for each warrant held at a price of $3.75 per common share. The offering will be sold on a best efforts basis by Griffiths McBurney & Partners and Wellington West Capital Inc. Closing is anticipated on or before May 11, 1998.

Combined with the recently announced $30 million financing from Roynat Inc., these funds will be used to complete acquisitions in process and provide general working capital. Upon exercise of the common share purchase warrants at $3.75, an additional $37,500,000 will become available for future acquisitions. "These funds would accrue to the Company net of Agents fees and other normal issuer costs," Mr. Nagy said.

The offering will be subject to regulatory approval and approval by the Board of Directors.

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
or visit The Arctic Group's Web Site at http://www.arcticgroup.com.

(Signed)
On behalf of the Management and the Board of Directors of The Arctic Group Inc.,
Robert Nagy, Chairman & CEO.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICE OR DISSEMINATION IN THE U.S.A.

The Alberta Stock Exchange has not reviewed and does not approve or disapprove of the adequacy or accuracy of this release.