ARCTIC GROUP CONTINUES U.S. EXPANSION WITH ACQUISITION OF KANSAS ICE

March 17, 1999 - Winnipeg, Manitoba. The Arctic Group Inc. announced that it has signed a Letter of Intent to acquire Kansas-based ice producer and distributor, Kansas Ice, Inc.

Kansas Ice, Inc. services the Kansas state market from a production and distribution facility based in Hutchinson, Kansas. The company has annual sales of approximately $1,700,000. Adjoining with previous Arctic acquisitions in the central United States, Kansas Ice will generate synergies in production and distribution.

"Servicing the State of Kansas, the acquisition of Kansas Ice is an ideal fit with our recent acquisition of Valley Ice, the largest manufacturer/distributor in Nebraska," said Robert Nagy, Arctic Group Chairman and CEO. "Kansas Ice also compliments the acquisition of Party Pak, a acquisition we completed last year in Wichita, Kansas." "The completion of the Kansas Ice acquisition further strengthens our position in the Mississippi Valley and advances the success of The Arctic Group’s strategy of consolidation in the North American packaged ice industry".

Subject to final due diligence, financing, Board and regulatory approvals, the transaction is scheduled to close within 90 days. Senior management at Kansas Ice will be retained following the acquisition.

The acquisition of Kansas Ice is a further step in the execution of Arctic's business plan to consolidate the North American Industry. Consistent with past acquisitions, the Kansas Ice transaction maintains Arctic's focus on product quality and profitability.

The Arctic Group is one of North America’s largest ice companies with operations that encompass all the major markets in Canada and service a substantial segment of the United States.

For further information, call The Arctic Group Inc. TOLL FREE at 1-888-573-9237

(Signed)
On behalf of the Management and the Board of Directors of The Arctic Group Inc.,
Robert Nagy, Chairman and CEO.

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