THE ARCTIC GROUP ANNOUNCES PLACEMENT OF AUTOMATED IN-STORE ICE PRODUCTION UNITS AND PACKAGING UNITS INTO THE PUERTO RICO MARKET

Winnipeg, Manitoba - The Arctic Group Inc. (TSE:AGP), a leading North American producer and distributor of packaged ice, today announced it has entered the Puerto Rico market with its automated in-store ice production units.

The automated in-store units have been placed at three initial locations in Puerto Rico. Two of the units have been placed in San Juan retail outlets operated by two large U.S. based retailers. One additional unit has been placed in Ponce, Puerto Rico with the largest chain of grocers in the Puerto Rico market. It is anticipated that further placements in the Puerto Rico market will occur during the balance of the year.

Arctic Group CEO, Robert Nagy stated; "The placement of in-store ice production units in Puerto Rico is an important advancement of Arctic's strategy for the integration of the automated units into markets that traditionally have not been serviced by Arctic. Arctic's ability to grow is substantially enhanced through the placement of this technology."

Arctic's automated in-store ice production unit, 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 market area. The Ice Perfection System 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 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 & CEO.

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