ARCTIC GROUP PROSPECTUS FILED AND CLEARED

TUESDAY, DECEMBER 29, 1998 - Winnipeg, Manitoba – The Arctic Group Inc. announced today that its prospectus has cleared to qualify the distribution of 11,994,000 common shares.

This prospectus was dated December 17, 1998. The receipts were received by the company December 21, 1998 and accordingly, the shares will be deemed to have been issued on December 29, 1998. The Special Warrants raised a total of $28,110,000.

This prospectus qualifies for distribution of 2,750,000 common shares to be issued upon the exercise of 2,500,000 special warrants placed in March 1998.

As well, this prospectus also qualifies for distribution of 9,244,000 units to be issued upon the exercise of 9,244,000 special warrants issued in May 1998. Each unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one additional common share of the Corporation in consideration for $3.75 until May 21, 2000. Should all of these share purchase warrants be exercised prior to expiration on May 21, 2000, additional proceeds to the Corporation will be $34,665,000.

The Arctic Group is Canada’s largest ice company and is committed to building an internationally recognized 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.