ARCTIC GROUP 1999 THIRD QUARTER EBITDA MORE THAN DOUBLES TO A RECORD $19.4 MILLION

November 25, 1999 - Winnipeg, Manitoba - Mr. Robert Nagy, Chairman reports “The Arctic Group Inc. is pleased to announce record revenue and operating performance for the third quarter and the fiscal year to date.”

The Arctic Group Inc. is pleased to announce record revenue and operating performance for the third quarter and the fiscal year to date.

Revenue for the third quarter grew to $34.8 million. Year to date revenue increased 69 percent to $64.9 million. EBITDA for the third quarter was $13.5 million. EBITDA year to date of $19.4 million is more than double that achieved in the first nine months of last year. Net income for the year to date increased to $5.4 million or $.15 per share (basic).

EBITDA for the 9 month period ended September 30, 1999 was $.54 per share (basic).

EBITDA performance as a percentage of revenue for the third quarter increased to 39 percent and year to date EBITDA performance is 30 percent. Both the quarter and year to date EBITDA Margin results represent an improvement of 6 percentage points over the identical periods in 1998.

The Company's focus on improving operating performance in our business units has been very successful as is evidenced by the Company's year to date 25 percent improvement in EBITDA Margins, increasing EBITDA Margins from 24 percent to 30 percent. The Company will continue to create shareholder value through reducing overhead, increasing production efficiencies and rationalization of distribution systems.

The Arctic Group will continue to assess acquisition opportunities with a continued geographic focus. The Company completed 4 acquisitions in the third quarter bringing the total to 12 for the current fiscal year. The Company's annual run rate is in excess of $80 million.

The Company is well capitalized to fund its operations and growth over the next year. At the end of the third quarter, the Company has credit facilities of over $30 million available in addition to working capital of $18 million.

As noted in earlier quarterly reports the Company has changed its fiscal year end to correspond with the calendar year. The change of year end has created differences in the months included in the historical comparative results contained in the quarterly financial statements released today. The previous table and comments relate to Revenue and EBITDA for the identical period in 1999 and 1998 respectively. This presentation provides the reader with a more meaningful comparison of the improvement of operations year over year.

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.