THE ARCTIC GROUP LAUNCHES AUTOMATED IN-STORE ICE PRODUCTION AND PACKAGING UNITS

Winnipeg, Manitoba- The Arctic Group Inc. (TSE:AGP), a leading North American producer and distributor of packaged ice, today announced that it has placed its first operating automated in-store ice production units into a retail chain located in Kansas.

The Arctic Group previously announced the development of The Ice Perfection System, Arctic's automated in-store ice production and packaging technology. The Ice Perfection System automatically filters, produces, packages and merchandises quality packaged ice at the point of sale. The technology is ideal for high volume retailers and for retailers located outside Arctic’s existing distribution network.

Arctic Group CEO, Robert Nagy stated; "The in-store ice production unit is an important element in the company’s growth strategy. With the Ice Perfection System Arctic will be able to grow beyond its existing markets and expand into new markets that traditionally have not been serviced by Arctic. The Ice Perfection System is complementary to the company’s strategy of marketing premium-quality ice. The in-store technology will enhance customer convenience making quality packaged ice readily available in retail locations where demand is high or where direct-to-store delivery service in outlying areas is impractical for both Arctic and the retailer.

This initial placement of the Ice Perfection System is an important and exciting milestone for Arctic. The Ice Perfection System will enhance the profitability of our existing markets, ease entry into new market areas, as well as enhance Arctic’s program of licensing quality ice manufacturers to produce and market their ice products under the brand name Arctic Glacier Premium Ice."

The in-store production unit features a sophisticated internal diagnostic program, current status reporting program and remote sensing capabilities, allowing production and maintenance to be monitored from a central location.

The Arctic Group is a leading North American producer, marketer and distributor of 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 shareholder value through 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 and CEO.

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