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ARCTIC GROUP REPORTS STRONG 1998 YEAR-END RESULTS Winnipeg, Manitoba - The Arctic Group Inc. (AGP:ASE) recorded strong growth for the period ended December 31st, 1998. The Company previously announced a change in year end from April 30th to December 31st. Sales for the eight months ended December 31st, 1998 were $41,508,049, an increase of $31,934,302 or 330% compared to the twelve month revenue for the year ended April 30th, 1998. Earnings before amortization, interest, taxes, and non-recurring expenses reached $9,921,788 or $0.44 per share ($0.36 fully diluted) for the 8 months ended December 31, 1998, compared to $422,514 or $0.03 per share for the year ending April 30, 1998. For the period ended December 31st, the Company generated a cash surplus from operations of $6,323,442 compared with a deficit of $366,574 for the year ended April 30th. This produced an operating cash flow per share of $0.28 ($0.24 fully diluted) compared to a negative of $0.02 per share for the year ended April 30th, 1998. The Company has reported net earnings for the eight month period of $1,856,611 compared to a loss of $1,016,214 for the year ended April 30th, 1998. Earnings before income taxes for the eight month period increased to $3,489,440 compared to a pre-tax loss of $1,453,814 for the year ended April 30th , 1998. The profit performance for the current period reflects the implementation of the Company's growth strategy, the outstanding demand for the Company's products over the past summer season, and the rationalization of operations. "These results continue to demonstrate the soundness of The Arctic Group's strategy of growth through accretive acquisitions and the realization of synergies resulting in a significant improvement in the Company's financial performance. The annualized revenues of The Arctic Group should approach $70,000,000 during the current year of operations" said Robert Nagy, Arctic Group Chairman and CEO. The Arctic Group is Canada's largest ice manufacturer and distributor, with operations in Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia. The Arctic Group is also one of the largest ice companies in the U.S. with operations in Texas, New Mexico, Oklahoma, Kansas, Nebraska, Iowa and Minnesota. Arctic continues to build an internationally recognized ice company by following a focused acquisition and consolidation strategy. 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) |