ARCTIC POISED FOR FURTHER GROWTH

Winnipeg, Manitoba - The Arctic Group has recently executed a number of key components of its business plan to set the stage for further growth and enhanced profitability.

Robert Nagy, CEO stated:
"The company has recently concluded three significant steps towards the delivery of the business plan and the attainment of our corporate objectives. First of all, we are excited about the operating performance for the second quarter of 1999. The revenue for April to June has increased by $10.1 million or 83% over the same months in 1998 and the operating profit as defined by EBITDA is ahead of our targets. This verifies the model which Arctic has developed to acquire and integrate new companies and supports the premise that we will be able to continue to integrate the acquisitions and grow Arctic profitably.

An integral component has been the introduction of the Arctic national brand, "Arctic Glacier" in Canada. This program has enabled the company to standardize the product quality, packaging and distribution across the country. This has solidified our presence with national accounts and let us capture new marketing opportunities such as the joint promotion currently underway with Coca-Cola.

The final important development this summer has been the placement of $127 million in new financing for the company. We received the initial draw on the funding for this program last week and the program also provides approximately $35 million of new capital. Having refinanced existing debt, Arctic will also realize a significant cost saving as our effective cost of capital has been lowered."

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 and CEO

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