THE ARCTIC GROUP INC. COMPLETES INITIAL CLOSING OF PRIVATE PLACEMENT OF SPECIAL WARRANTS

The Arctic Group Chairman and CEO, Robert Nagy, announced today the Company's initial closing of a private placement of 6,784,000 special warrants for gross proceeds of $16,960,000. The Company anticipates a subsequent closing to conclude the previously announced private placement of up to 10,000,000 special warrants for gross proceeds of $25,000,000.

The initial closing of the special warrants was completed at this time to facilitate acquisitions in process. 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.

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, up to an additional $37,500,000 will become available for future acquisitions.

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 and CEO

NOT FOR DISTRIBUTION TO THE 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.