THE ARCTIC GROUP TO ACQUIRE CATARACT ICE OF NIAGARA FALLS, ONTARIO

June 11, 1998 – Winnipeg, Manitoba – The Arctic Group Inc. announced today that the Company has signed a Letter of Intent to acquire Cataract Ice Limited of Niagara Falls, Ontario.

Cataract Ice Limited, a packaged ice manufacturer and distributor, services an area that includes Niagara Falls, Hamilton and Burlington.

Cataract Ice has annual sales of approximately CDN$2,000,000. The acquisition stands to increase The Arctic Group’s overall annualized gross revenue to approximately CDN$67,000,000.

This acquisition will be completed through a combination of cash, debt and common stock. The transaction is scheduled to close on or about July 15, 1998, subject to final due diligence, regulatory and Board approvals.

“With the addition of Cataract Ice, The Arctic Group has taken another strong step toward the consolidation of the Canadian market,” said Robert Nagy, The Arctic Group Chairman and CEO.

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, Chairman & CEO.