THE ARCTIC GROUP RELEASES 2000 THIRD QUARTER RESULTS

WINNIPEG, MANITOBA - The Arctic Group Inc. (AGP:TSE) today announced record-breaking results for the third quarter ended September 30, 2000.

Arctic's third quarter includes the summer months of July and August, when demand for its products is at its peak. This quarter was the strongest in the history of the company. Sales, EBITDA, operating margins and profitability all reached record levels during the quarter and for the year to date.

Revenue of $37.1 million in the third quarter represents an increase of 6% over the same period last year. Resultant EBITDA (earnings before interest, taxes, depreciation and amortization) was $15.8 million, up 17.0% over last year's $13.5 million. EBITDA as a percentage of sales (EBITDA margin) improved from 38.7% to 42.7%, an increase of 10.3%.

Overall figures for the nine months ended September 30, 2000 also reflect the strong third quarter. EBITDA grew by 16.1% from 1999, to $22.5 million, on a sales increase of 8.5%, to $70.5 million. EBITDA margins climbed to 32.0% versus 29.9% last year.

Robert Nagy, Chairman and CEO stated: "This record performance was achieved in spite of unseasonably cool and wet weather in a number of key markets. The ability to increase our sales, and more importantly our margins, despite reduced demand validates our strategy of building an international brand and taking advantage of operational synergies. Our geographic diversity helps to reduce the risk of being adversely affected at the corporate level by inclement weather in any single region.

The Arctic Group's plan to advance its branding and licensing initiatives has continued in 2000. Arctic Glacier Premium Ice has been introduced in all our markets this year. In the last quarter, Arctic announced its second licensing agreement with a major U.S. producer servicing the Midwest. Under the licensing program, qualified manufacturers that meet stringent quality standards may package their product under the brand name of Arctic Glacier Premium Ice.

The other major tenet of Arctic's strategy has also progressed significantly during the last three months. The Arctic Group Inc. Has now completed development of an in-store ice production system known as the "Ice Perfection System." This machine filters the water, produces the ice, packages the product and merchandises the brand, all at the point of sale. Placements of the Ice Perfection System are scheduled to begin in the fourth quarter of this year. This system, together with the licensing program, will provide Arctic the opportunity to grow its brand outside its traditional geographic markets with limited capital investment.

We are pleased with the progress we have made toward our goal of becoming an internationally recognized company and a leader in our industry during the year."

The Arctic Group is a leading North American producer, marketer and distributor of purified, high-quality packaged ice products to consumers in Canada and the U.S. under the brand name of Arctic Glacier Premium Ice. The Arctic Group is committed to creating sustainable value for its shareholders through superior margin growth, prudent management, and growing penetration of its branded ice products in key target markets.

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.

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