ARCTIC GROUP RELEASES 1999 SECOND QUARTER RESULTS

Winnipeg, Manitoba - The Arctic Group Inc. (Alberta AGP) today announced solid operating results for the second quarter ended June 30th, 1999.

Revenues increased to $22.4 million for the second quarter 1999, up from $19.9 million for the three months ended July 31st, 1998, the most recent published comparable quarter.

Robert Nagy, Chairman and CEO stated:
"We are pleased to report that Arctic recorded EBITDA of $7.3 million or $0.20 per share, on sales of $22.4 million for the three months ended June 30, 1999. This represents an operating ratio of 32% for the quarter, is ahead of the $7.1 million achieved in the prior year and well above the performance targets established in the company's business plan.

All of the company's major divisions contributed to the improvement in the financial results. Second quarter sales increased 13% over last year to $22.4 million. For the spring, the weather patterns in our markets were average, though we were able to attain solid volume increases in eastern Canada. This reflects the investments made to rationalize those markets and the high level of service which Arctic is committed to provide its customers."

As noted in earlier releases, the company has changed its reporting cycle to correspond with the calendar year. As a result, the presentation of the current year's results for this quarter include the months of April, May and June. For the comparable quarter in prior years, we had published the months of May, June and July.

Since July represents the single largest month of activity for Arctic, the reader should consider this fact when comparing the Company's performance against prior years. To quantify the information, note that the Company's internal revenue estimate for July 1999 is in the range of $14 million. As we move through the balance of this year, the effect of this timing difference will be eliminated, though the shareholders should consider its impact on the current quarter.

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.