ARCTIC GROUP RELEASES 2000 SECOND QUARTER RESULTS

WINNIPEG, MANITOBA - The Arctic Group Inc. (TSE-AGP) today announced operating results for the second quarter ended June 30, 2000.

Sales increased 12.8% during the second quarter to $25.3 million compared to $22.4 million in the same period last year. EBITDA increased 14.5% during this same period to $8.3 million compared to $7.3 million in 1999. Net income for the second quarter was $1.4 million compared to $1.5 million for the same period last year.

For the six months ended June 30, sales increased 11.1% to $33.4 million compared to $30.1 million in the same period last year. EBITDA for the first six months was $6.7 million compared to $5.9 million in 1999, an increase of 13.3%. Net loss for the six months ended June 30 was $2.2 million compared to a net loss of $1.3 million for the same period in 1999.

Robert Nagy, Chairman and CEO stated: "The seasonality of our business in the winter and early spring results in losses for the first four months of the year and modest income for May and June in the second quarter. Net income for the first and second quarters of the year were impacted by the significant fixed non-cash amortization costs that are a function of the Company's growth. The third quarter is the driver for the annual financial performance of the company. We continue to be pleased with the operating performance of the Company."

The Arctic Group completed three acquisitions during the second quarter of 2000, all of which were within Arctic's geographically focused area, which is consistent with Arctic's strategy of synergistic acquisitions that create long-term shareholder value. The Company continues to remain focused on improving operating performance.

During the second quarter the Company signed its first licensing agreement with a U.S. ice manufacturer. Under this licensing program, Arctic will license qualified ice manufacturers that meet its quality standards to package their products under the brand name Arctic Glacier Premium Ice. During the quarter, the Company established a new company called Ice Perfection Systems Inc. which is based in Phoenix, Arizona. Ice Perfection Systems Inc. will be responsible for the marketing of Arctic's in-store bagging program. The automated machine will be available during the fourth quarter of this year to the appropriate existing and potential retailers in markets serviced by Arctic, as well as being available for licensing by other producers of quality packaged ice across North America.

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 brand name of Arctic Glacier Premium Ice. The Arctic Group is committed to creating sustainable value for its shareholders through superior margin 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, Chairman & CEO.

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