NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES

SHAREHOLDERS OF THE ARCTIC GROUP INC. APPROVE PLAN OF ARRANGEMENT TO CONVERT TO AN INCOME FUND

Arctic Glacier Income Fund Enters into Underwriting Agreement

Winnipeg, Manitoba - The Arctic Group Inc. ("Arctic") (AGP:TSE) announced that the proposed reorganization of Arctic into an income trust pursuant to a Plan of Arrangement (the "Arrangement") was overwhelmingly approved by shareholders, option holders and holders of convertible debentures at its special meeting held on March 11, 2002. The approval of the Arrangement will result in the conversion of Arctic from a corporate entity into an income trust called Arctic Glacier Income Fund (the "Fund"). The final order approving the Arrangement from the Court of Queen's Bench of Alberta was also issued yesterday.

Under the Arrangement, shareholders of Arctic will indirectly exchange their common shares in Arctic for units in the Fund on a six-for-one basis. The Fund has received conditional approval from the TSE to trade under the symbol AG.UN.

In connection with the reorganization, the Fund has reached an agreement with a syndicate of underwriters, led by TD Securities Inc. and Scotia Capital Inc. and including CIBC World Markets Inc., RBC Dominion Securities Inc., National Bank Financial Inc. and Wellington West Capital Inc., for its initial public offering of $86,000,000 of trust units at a price of $9.50 per unit. A final prospectus is being filed in all provinces and territories of Canada for this offering.

The net proceeds of the offering, together with funds drawn under a new credit facility, will be used to refinance the current credit facilities of Arctic and for working capital.

The Fund is an unincorporated open-ended mutual fund trust created to invest in the packaged ice manufacturing and distribution business in Canada and the United States, initially through the acquisition of Arctic by the Fund's wholly owned subsidiary Arctic Glacier Inc.

The Fund will make monthly cash distributions to the maximum extent possible. The first distribution is expected to be paid on or about May 15, 2002 for the period covering from the closing of the offering (currently scheduled for March 22, 2002) to April 30, 2002.

Arctic is a leading producer, marketer and distributor of high-quality packaged ice to consumers in Canada and the United States under the brand name of Arctic Glacier Premium Ice. Following the closing of the offering, Arctic Glacier will carry on the business currently conducted by Arctic through its 17 production plants and 32 distribution facilities across Canada and the Central United States servicing 35,000 retail accounts.

For further information, call The Arctic Group Inc. TOLL FREE at 1-888-573-9237 or visit The Arctic Group's Web Site at www.arcticgroup.com or the Arctic Glacier Income Fund website at www.arcticglacier.ca.

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

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.