THE ARCTIC GROUP CONCLUDES DISCUSSIONS WITH A.T. REYNOLDS & SONS INC. (“LEISURE TIME”)

January 22, 1999 - Winnipeg, Manitoba – The Arctic Group Inc. announced that, following discussions with principals of Leisure Time, the Company’s acquisition, which was announced following the signing of a Letter of Intent in June 1998, would not proceed.

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.