THE ARCTIC GROUP SIGNS DEAL WITH NEW YORK CITY ICE COMPANIES

The Arctic Group Inc. announced today the Company has signed a Letter of Intent to acquire 100 percent of the common shares of Springdale Ice Company Inc. of Mamaronek, New York, Diamond Ice Cube Company Inc., located in Manhattan, New York and Saxony Ice Co. Inc. of Trenton, New York. These companies distribute their product under the brand name "Leisure Time".

This group of companies, has annual sales of approximately CDN$17,000,000 with manufacturing and distribution in the New York Metropolitan area, Central and Southern New Jersey and Eastern Pennsylvania. The Arctic Group's consolidated annualized revenue will be approximately CDN$84 million.

This latest acquisition will be completed through a combination of cash, debt and shares. Subject to final due diligence, financing and Board and regulatory approvals, the transaction is scheduled to close in 90 days. Senior management at Saxony, Springdale and Diamond will be retained following the acquisition.

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 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.

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