North West Company Fund Announces FinancialResults.

WINNIPEG, Manitoba--(BUSINESS WIRE)--March 25,1998--(TSE:NWF.UN.) (WINNIPEG STOCK EXCHANGE:NWF.UN.) North West Company Fund (the "Fund") today reported 1997 fourth quarter and year-end earnings for the period ended January 31, 1998.

CONSOLIDATED RESULTS

Fourth quarter earnings

Revenues and expenses were impacted by the extra week in the fourth quarter due to the 53 week fiscal calendar this year versus 52 weeks last year. Adjusting for the extra week, total revenues for the quarter increased by 5.5 percent.

Earnings for the year at $21.0 million increased 17.8 percent or $3.2 million to $1.40 per unit compared to $1.18 per share last year.

CANADIAN OPERATIONS

Canadian revenues at $146.7 million increased 11.5 percent in the fourth quarter compared to last year while operating profit was down by 16.6 percent to $12.5 million.

Food sales achieved a 10.7 percent increase in comparable stores sales in the quarter. General merchandise sales reported a comparable stores increase of 7.8 percent. After adjusting for the extra week, total revenues for the fourth quarter increased by 5.4 percent.

Food gross margin rates in Canada gained from the consolidation of more volume through the Company's own distribution system. Sharper everyday and promotional pricing combined with a continued higher blend of hardlines and Selections catalogue sales helped to stimulate top line growth in general merchandise but at lower margin rates.

Higher administration costs and losses in the Company's Inuit Art Marketing businesses, although non-recurring in nature, had a significant impact on the shortfall in operating profit in the quarter.

ALASKAN OPERATIONS (stated in U.S. dollars)

Alaska Commercial Company (AC) continued to achieve improved results, recording a fourth quarter operating profit of $283,000 compared to an operating loss of $717,000 last year.

As in the first three quarters, AC's food business delivered strong market share gains, with comparable stores sales increasing by 14.0 percent. Sales in general merchandise increased in most hardlines categories but were down 7.5 percent overall due to poor apparel and snow machine sales and the planned elimination of unprofitable categories. After adjusting for the extra week, total revenues for the quarter increased by 5.6 percent. -0-

HIGHLIGHTS

-    The Fund increased its quarterly distribution to $0.25 per unit
     commencing March 15, 1998 and is expected to be maintained at
     that level for 1998. A fifth distribution for 1998, payable in
     January 1999, will be approximately $0.25 per unit and is
     expected to be made by a distribution of units of the Fund.

-    NWC moved forward with its strategy development project, focused
     on building a stronger competitive positioning in Canada. The
     rollout of key initiatives from this project will start in the
     first quarter of 1998.

-    NWC's "People First" program exceeded its 1997 target of
     increasing Aboriginal representation in store management,
     achieving an increase of 33 percent, (from 91 to 128 positions).

-    The Company organized "Spirits in the Sun", a Canadian Indigenous
     Art Festival held in Scottsdale, Arizona to help raise
     international awareness of Canadian aboriginal art.

-    NWC announced the appointment, effective April 20, 1998, of
     Dallas Thorsteinson as Executive Vice-President, responsible for
     Marketing, Transportation and Distribution in Canada. Dallas
     brings over 15 years of progressive experience in packaged goods,
     supermarket and convenience store retailing.

-    AC was chosen to receive the Alaska Large Employer of the Year
     Award in recognition of exceptional efforts to employ people with
     disabilities and to comply with the Americans Disabilities Act.

-    Taxable unit holders are reminded that the conversion of NWC
     shares to NWF trust units on March 27, 1997, was a taxable event.
     This will result in a capital gain or loss based on the fair
     market value of the trust units of $11.70 at that date.

                     CONSOLIDATED BALANCE SHEETS
             (unaudited, in thousands of Canadian dollars)
    --------------------------------------------------------------
    (Comparative figures are those of The North West Company Inc.)

                     January 31, 1998         January 25, 1997

ASSETS

Current assets               $213,659            $184,836

Capital assets                198,074             184,268

Other assets                   13,403              14,632
                             --------            --------
                             $425,136            $383,736
                             --------            --------
                             --------            --------

LIABILITIES

Current liabilities          $121,398             $92,585

Long-term debt                134,476             135,228

Deferred income taxes           9,102               8,570
                             --------            --------
                              264,976             236,383

Equity                        160,160             147,353
                             --------            --------
                             $425,136            $383,736
                             --------            --------
                             --------            --------


      CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
            (unaudited, in thousands of Canadian dollars)
    (Comparative figures are those of The North West Company Inc.)

                        14 Weeks  13 Weeks  53 Weeks  52 Weeks
                          Ended     Ended     Ended     Ended
                         Jan. 31,  Jan. 25,  Jan. 31  Jan. 25,
                           1998      1997      1998     1997

Sales and other revenue
  Canadian operations   $146,667   $131,593  $497,997  $474,465

  Alaskan operations      31,626     27,825   118,713   116,118
                        ---------------------------------------
Operating profit
  before amortization
  (EBITDA)               178,293    159,418   616,710   590,583

  Canadian operations     16,518     18,750    53,478    57,198

  Alaskan operations         909       (470)    3,620     2,159
Amortization
  Canadian operations     (3,984)    (3,729)  (15,525)  (14,181)
  Alaskan operations        (505)      (511)   (1,986)   (1,968)
                        ---------------------------------------
OPERATING PROFIT (EBIT)   12,938     14,040    39,587    43,208
  Interest                (3,466)    (2,685)  (12,298)  (11,843)

Provision for
  income taxes            (2,157)    (5,644)   (6,252)  (13,507)
                        ---------------------------------------
EARNINGS FOR THE PERIOD    7,315      5,711    21,037    17,858

Retained earnings,
  beginning of period      7,115     49,339    53,550    42,400

Distributions/Dividends        -     (1,500)   (7,425)   (6,031)
Conversion to Fund
  capital (Note 2)                            (52,732)
Premium on shares
  purchased for
  cancellation                                             (677)
                        ---------------------------------------
RETAINED EARNINGS,
  END OF PERIOD          $14,430    $53,550   $14,430   $53,550
                        ---------------------------------------
                        ---------------------------------------

EARNINGS PER UNIT/SHARE    $0.49      $0.38     $1.40     $1.18


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1.  Accounting Principles

     These unaudited consolidated financial statements are based on
accounting principles consistent with those used and described in the
annual financial statements of North West Company Fund (the "Fund").

2.  North West Company Fund

     Effective March 27, 1997, under the arrangement as described in
the annual report, shares of NWC were exchanged on a one-for-one basis
for units of North West Company Fund. The share capital and retained
earnings of NWC were converted into capital of the Fund as follows:

        NWC share capital                  $93,605
        Conversion of retained earnings     52,732
        Expenses of the arrangement         (1,500)
                                          --------
                                          $144,837
                                          --------
                                          --------

3.  Basis of Consolidation

     The consolidated financial statements of the Fund include the
accounts of NWC and its subsidiaries. All inter- entity amounts and
transactions have been eliminated on consolidation.

4.  Comparative Amounts

     The comparative amounts have been reclassified to conform with
the current year's presentation.

       CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
            (unaudited, in thousands of Canadian dollars)
    -------------------------------------------------------------
    (Comparative figures are those of The North West Company Inc.)

                        14 Weeks  13 Weeks  53 Weeks  52 Weeks
                          Ended     Ended     Ended     Ended
                         Jan. 31,  Jan. 25,  Jan. 31  Jan. 25,
                           1998      1997      1998     1997

CASH PROVIDED BY
 (USED IN)
Operating Activities
  Earnings for
  the period              $7,315    $5,711    $21,037  $17,858

  Non-cash items
    Amortization           4,489     4,240     17,511   16,149
    Deferred income
      taxes                2,955      (527)       532   (1,017)

Amortization of bond
    warrant proceeds
    and interest rate
    fixing payment          (464)     (509)    (1,960)  (2,035)

Gain on disposal
 of capital assets          (316)      (66)    (1,128)    (368)
                        ---------------------------------------
Cash flow                 13,979     8,849     35,992   30,587

Changes in non-cash
 working capital
 components                7,259     8,166    (14,677)   1,126
                        ---------------------------------------
  Operating activities    21,238    17,015     21,315   31,713
                        ---------------------------------------

Investing Activities
  Purchase of capital
   assets                 (5,749)   (8,145)   (28,818) (22,994)

  Proceeds from sale
   of capital assets          55       973      2,161    1,653

  Other assets             2,364       745         10   (1,865)
                        ---------------------------------------
  Investing activities    (3,330)   (6,427)   (26,647) (23,206)
                        ---------------------------------------


Financing Activities

  Expenses of the
   arrangement                 -         -     (1,500)       -

  Purchase of shares
   for cancellation            -         -          -   (3,916)

  Repayment of
    long-term debt          (123)       20       (328)  (5,728)
                        ---------------------------------------
  Financing activities      (123)       20     (1,828)  (9,644)
                        ---------------------------------------
Distributions/Dividends   (3,300)   (1,500)    (8,925)  (6,094)
                        ---------------------------------------
CHANGES IN CASH POSITION  14,485     9,108    (16,085)  (7,231)
                        ---------------------------------------

Effect of currency
  translation
  adjustment              (2,635)      132     (3,766)   1,155

Cash position,
  beginning of period    (67,811)  (45,350)   (36,110) (30,034)
                        ---------------------------------------

CASH POSITION,
  END OF PERIOD         ($55,961) ($36,110)  ($55,961)($36,110)
                        ---------------------------------------
                        ---------------------------------------

CASH POSITION IS
  COMPRISED OF

  Cash                   $10,376    $3,409    $10,376   $3,409

  Bank advances and
    short-term notes     (66,337)  (39,519)   (66,337) (39,519)
                        ---------------------------------------

                        ($55,961) ($36,110)  ($55,961)($36,110)
                        ---------------------------------------
                        ---------------------------------------

-0-

The North West Company operates in Canada as Northern and in Alaska as AC Value Centers, and is North America's leading retailer of food, family apparel and general merchandise in northern communities. The Fund trades on the Toronto and Winnipeg Stock Exchanges under the symbol "NWF.UN".

CONTACT: North West Company Fund

Gary Eggertson, 204/934-1503

204/934-1455 (FAX)

geggertson@northwest.ca