ARCTIC GROUP INTRODUCES COMPUTERIZED ROUTE ACCOUNTING SYSTEM IN DELIVERY VEHICLES

January 17, 2000 - Winnipeg, Manitoba - The Arctic Group Inc. announced today that it is introducing an integrated computerized route accounting system to its ice manufacturing and distribution business this year. The system uses hand held computers which allow drivers to track customer stops, order information, inventory data and generate invoices.

Arctic sees tremendous benefit in converting to this "paperless" system which will allow drivers to enter customer data directly into the computer at the point of sale. Hand held computers are used extensively in the distribution and beverage industry. The system is viewed as yet another means of driving the economies of centralization as well as providing management with current information on a real time basis.

The hand held computers allow the drivers to control inventory more effectively, improve the efficiency of sales calls and product deliveries, reduce administrative errors, time consuming paperwork and data entry.

The first fully integrated Route Accounting System has been introduced at Arctic's facility in St. Paul, Minnesota, the first location in a series of planned deployments. It is anticipated that this system will be operational at all of Arctic's 47 North American distribution centres during the current year.

The Arctic Group Inc. will continue to build an internationally recognized ice company by following a focused acquisition and consolidation strategy concentrating on geographically contiguous 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 accuracy of this release.