ARCTIC GROUP SIGNS LICENSING AGREEMENT WITH PROMINENT MIDWEST ICE MANUFACTURER

WINNIPEG, MANITOBA - The Arctic Group Inc. (TSE-AGP) announced today that it has signed a licensing agreement with Mr. Dennis Menke, the President of Crystal Ice of Westpoint, Iowa.

Crystal Ice is one of the largest independent manufacturers and distributors of packaged ice in the United States servicing markets in Iowa, Illinois and Missouri.

Under the agreement, Crystal Ice will produce and market all of its ice products as Arctic Glacier Premium Ice. Through its North American program, Arctic is licensing qualified ice manufacturers that meet their quality standards to package their products under the brand name Arctic Glacier Premium Ice.

Robert Nagy, Chairman and CEO stated: "Arctic's licensing program is an excellent way to increase brand awareness and provide a financial return on our name. The wider geographic market coverage of our name is an important component of what Arctic is able to offer both our national account customers and potential licensing candidates. We are pleased to have Mr. Dennis Menke, a former President of the International Packaged Ice Association, involved with our company."

Dennis Menke, President of Crystal Ice comments: "I feel that this licensing agreement is a great opportunity for our company. Over the past couple of years I have grown to appreciate the way the Arctic Group does business. This consolidation will benefit both the companies but primarily will assure a better product and service to our customers. I am pleased to be a partner with The Arctic Group."

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.