THE ARCTIC GROUP ANNOUNCES CONSTRUCTION OF NEW PLANT IN MISSISSAUGA, ONTARIO

January 7, 1999 - Winnipeg, Manitoba – The Arctic Group Inc. announced today that it has finalized a contract for the construction of a new manufacturing and distribution facility to be located in Mississauga, Ontario.

“The investment in this new facility will enable Arctic to consolidate the operations of five companies that we have acquired over the past seven months. The addition of the 20,000 square foot state of the art facility will improve our ability to serve our consumers in Southern Ontario”, said Robert Nagy, The Arctic Group Chairman and CEO. “By centralizing service capabilities in Mississauga, we will be able to provide improved service to this important market in addition to feeding our distribution centers located in Hamilton, Barrie and Fergus. The Western Ontario market will continue to be serviced from Chatham, Ontario where we are also expanding production for the summer of 1999”.

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 accuracy of this release.