ARCTIC GROUP COMPLETES ACQUISITION OF MINNESOTA-BASED DIAMOND CLEAR ICE

June 24, 1999 - Winnipeg, Manitoba - The Arctic Group Inc. announced today that the Company has completed the acquisition of all the related assets of Marshall, Minnesota-based ice producer and distributor, Diamond Clear Ice.

Diamond Clear Ice has a production facility in Marshall, Minnesota and distribution facilities in Sioux Falls and Aberdeen, South Dakota and St. Cloud and Barnesville, Minnesota. The company has annual sales of $4,000,000 CDN and services approximately 1500 accounts in Minnesota, South Dakota, North Dakota and Iowa.

"The acquisition of Diamond Clear broadens our distribution network in western Minnesota and eastern South Dakota," said Robert Nagy, Arctic Group Chairman and CEO. "This operation will become an integral component of our north central U.S. distribution system working together with recently acquired North Star Ice in Minnesota, Krieg Boys Ice in Iowa and Valley Ice in Nebraska. Our focus is to acquire operations like Diamond Clear that create synergies; contributing to the efficiency and profitability of our existing subsidiaries. The purchase of Diamond Clear is an excellent fit with Arctic's strategy of doing accretive acquisitions in markets contiguous to those in which the Company already has a presence."

The Arctic Group is one of North America's largest ice companies with operations that encompass all of the major markets in Canada and service a substantial segment of the central United States. The acquisition of Diamond Clear Ice is a further step in the execution of Arctic's business plan to consolidate the North American industry. Consistent with past acquisitions, the Diamond Clear transaction maintains Arctic's focus on product quality and profitability.

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, President & CEO.

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