ARCTIC GROUP RELEASES 2000 FIRST QUARTER RESULTS

Winnipeg, Manitoba - The Arctic Group Inc. (TSE-AGP) today announced operating results for the first quarter ended March 31, 2000.

Sales increased to $8.1 million in the first quarter compared to $7.7 million in the same period last year. EBITDA was negative $1.6 million or ($0.04) per share in 2000 compared to $1.3 million or ($0.04) per share in 1999.

The net loss to common shareholders in the first three months of 2000 was $3.6 million or ($0.10) per share compared to $2.9 million or ($0.08) per share in 1999.

Robert Nagy, Chairman and CEO stated: "The higher losses when compared to 1999, in terms of earnings and EBITDA, are a function of our growth. It is important to keep in focus the seasonal nature of our business. Our first quarter is normally characterized by very light demand, resulting in relatively slow sales, negative EBITDA and significant losses. In addition we made a number of acquisitions in late 1999 and early 2000 located in the northern United States and Canada which exaggerates these seasonal fluctuations. One quarter of all our fixed costs are incurred in the first three months, however, only 10 percent of our annual revenues are generated in this period. Accordingly, operating profits are enhanced during the second, third and fourth quarters of the year."

Mr. Nagy continued: "The significant progress we made in 1999 toward our goal to become the leading supplier of high quality, branded packaged ice in the North America consumer markets has continued in the first quarter of 2000. Our operations have performed well in the first three months of this year and we are ahead of our internal budget in this year. Our performance compared to budget continues to improve as we maintain our focus on consolidation and rationalization of fragmented markets. This has enabled us to realize the synergies made available through the dominant market position we established last year."

Arctic also remained active on the acquisition front. The Company completed three acquisitions in the first quarter and have closed two more early in the second quarter; concentrating on the tri-state area of the Dakotas and Minnesota. These transactions have established Arctic as the leading supplier in this market which is consistent with a strategy of synergistic acquisitions that create long-term shareholder value.

During the first quarter, considerable effort was devoted to planning and preparing for the busy summer months. Arctic also made significant progress in meeting the non-financial objectives identified in the 1999 annual report. The following milestones were met:

1. The renovation and expansion of the Marshall, Minnesota plant is completed.
2. The program to increase the production of our Mississauga plant by 33 percent is completed.
3. The installation of the heat sealed packaging equipment was initiated in the first quarter and completed in the second quarter.
4. Arctic has implemented hand held computers and route management software for sales delivery and invoicing in all of our markets.
5. The program to turn the Company's fleet of trucks into moving billboards was initiated and will be completed by the end of 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 'Arctic Glacier' brand. The company is dedicated to creating shareholder value through superior profit 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, President & CEO.

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