THE ARCTIC GROUP COMPLETES $127,000,000 FINANCING

Winnipeg, Manitoba - The Arctic Group announced today the completion of a financing package of $127,000,000 Cdn. The facilities are available through a syndicate of lenders / investors who have provided conventional term debt and debentures convertible into common equity of The Arctic Group Inc.

The term loan package of $100,000,000 will be provided by the company's existing lead lenders, The Bank of Nova Scotia and RoyNat Inc. The $27,000,000 in convertible debentures have been purchased by Citicorp North America Inc. and RoyNat Inc. The financing will be used to refinance existing debt, and to fund the continued growth of the company.

The Arctic Group Chairman and CEO Mr. Robert Nagy stated, "We are very excited about this financing package. It will provide The Arctic Group with a solid capital base and will facilitate continued growth, both organically and through acquisition. The Arctic Group has always relied on the strong support of our existing lenders, the Bank of Nova Scotia and RoyNat. The addition of Citicorp, headquartered in New York, brings an investor capable of participating in Arctic's future expansion. It also provides third party verification of the integrity of our business plan. We have demonstrated our ability to create shareholder value by doing accretive acquisitions and most importantly, realizing the synergies available through the rationalization of the businesses. Additionally, the new debt financing will significantly lower the company's cost of borrowing from its current levels."

The convertible debentures carry an 8.25% coupon and are convertible into common equity of The Arctic Group at $2.00 per share. The debentures have a 5 year term and include a call provision for Arctic.

As Canada's largest ice company, The Arctic Group Inc. 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, President & CEO.

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