THE ARCTIC GROUP INC. COMPLETES FIVE ACQUISITIONS AND $23.1 MILLION IN FINANCING

The Arctic Group Inc. announced it completed the acquisition yesterday of all of the issued and outstanding shares of five different leading ice companies based in Quebec and Ontario. The Arctic Group also announced it has completed a second closing on its private placement offering totaling $23.1-million. A portion of the funds raised from the private placement offering was used to complete the acquisitions. The remaining funds will be used to complete additional acquisitions and to provide working capital.

The Arctic Group acquired the following companies:

• Glace Carnaval (1983) Inc., serving Quebec city and surrounding area,
• Thibault & Brunelle Ltee, providing services in Montreal and surrounding communities,
• Capital City Ice Company Ltd., serving the Ottawa/Hull region,
• 1179554 Ontario Inc., which operates as ICECO and serves the Greater Metropolitan Toronto area, and
• Great Lakes Ice Ltd. serving Chatham, Windsor, Sarnia, Barrie and the Georgian Bay area of Ontario.

The combined revenues from these companies is in excess of CDN$13,000,000. These acquisitions stand to increase the Company's overall annualized gross revenue to approximately CDN$51,000,000.

The Arctic Group Inc. previously announced that the Company agreed to undertake a private placement of up to 10,000,000 special warrants of the Company. Each Special Warrant is exercisable into one common share and common share purchase warrant at no additional consideration, each purchase warrant being exercisable into one common share for each purchase warrant held at a price of $3.75 per common share.

An initial closing was held on May 21, 1998 wherein the Company sold 6,784,000 Special Warrants for gross proceeds of $16,960,000. A second closing was held on May 28, 1998 wherein the Company sold 2,460,000 Special Warrants for gross proceeds of $6,150,000.

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 DISSEMINATION IN THE UNITED STATES

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