ARCTIC GROUP ANNOUNCES NEW PRESIDENT

Winnipeg, Manitoba - Mr. Robert Nagy, President, Chief Executive Officer, and Chairman of The Arctic Group Inc.. Today announced a change in management structure of the company.

Mr. Nagy will remain Chief Executive Officer and Chairman of the Board. Michael Pyle, Chief Operating Officer of The Arctic Group Inc., will assume the additional responsibilities of President effective October 2, 2000. As a result of this realignment of positions, Mr. Nagy, as Chief Executive Officer and Chairman of the Board will concentrate on public and investor relations as well as strategic planning for the company.

Robert Nagy, Chief Executive Officer and Chairman stated: "The appointment of Mike to the position of President will allow me the substantial amount of time necessary to institute our awareness building strategy with the investment community. Mike and I have worked closely on an operational level for the past several years and during this time Mike has gained an extensive understanding of the business and the industry."

"During the past several months we have interviewed qualified investor relations firms. With the change of senior roles, I will focus on the communication to the investment community of the value of investing in The Arctic Group. The Arctic Group has made tremendous progress since its beginning in 1997. We are today one of the largest ice producers and distributors in North America servicing over 35,000 retail accounts. With Mike assuming the role of President, we expect to continue to leverage our strong market position and continue to improve our operating margins. Rationalized production and distribution infrastructures combined with the implementation of our Arctic Glacier brand in Canada enabled us to increase EBITDA (earnings before interest, taxes, depreciation, amortization, and non-recurring expenses) margins during 1999 by 33%. We believe our common share price in the market today is not reflective of the performance achieved by The Arctic Group over the past several years nor does it recognize the significant growth opportunities for our company through our Arctic Glacier brand licensing program, our in-store ice machine program, organic growth and growth through synergistic acquisition."

Mr. Pyle joined The Arctic Group in July of 1998 as Vice-President of Operations. In February of 1999 Mr. Pyle was appointed Chief Operating Officer of The Arctic Group. Mr. Pyle has a Masters of Business Administration degree and was Manager of Corporate Lending for RoyNat Inc.'s Winnipeg office for six years. RoyNat Inc. is one of Canada's leading merchant banks. During his tenure at RoyNat, Mr. Pyle was involved in the critical financial and operating analysis of his clients' acquisitions and divestitures.

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.