ARCTIC GROUP RELEASES 2001 FIRST QUARTER RESULTS

Winnipeg, Manitoba- The Arctic Group Inc. (TSE:AGP), a leading North American producer and distributor of packaged ice, today announced operating results for the first quarter ended March 31, 2001.

Sales for the first quarter of this year were $8.2 million compared to $8.1 million in the first quarter of 2000. Earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA) for the quarter ended March 31, 2001 were negative $2.5 million compared to negative $1.6 million in the first quarter of 2000. Net loss for the quarter ended March 31, 2001 was $5.7 million or a loss per share of $0.16 (basic and fully diluted after goodwill charges) compared to a loss of $3.9 million or a loss per share of $0.11 (basic and fully diluted after goodwill charges) in the first quarter of 2000.

Arctic Group CEO, Robert Nagy stated: "The first quarter of 2001 continued to see unseasonably cold temperatures in a number of our key markets which have negatively impacted revenues. In addition, revenues were also negatively affected by flooding in the upper Mississippi Valley late in the quarter. Some of this weather related shortfall was offset by the weaker Canadian dollar during the first quarter of 2001 compared to the first quarter of 2000, revenues from small to mid-size acquisitions completed during 2000 as well as benefits derived from opportunities made available through our branding and product quality initiatives. Revenue shortfalls during this quarter in which we experience the lowest demand for our ice products has a tremendous negative impact on EBITDA for this quarter."

Mr. Nagy continued: " It is important to keep in mind the seasonality of our business. Demand for our ice products in our first quarter is very light, resulting in negative EBITDA and significant losses. As the Company has grown, the effect of our fixed costs during our slowest quarter has become even more dramatic. During this first quarter Company revenues represent approximately 10 percent of annual revenues while during this same time the Company incurs 25 percent of annual fixed costs including interest, depreciation and amortization. We are now well into the second quarter; the second and third quarters of the year are the financial drivers for the Company. It is during the second and third quarters that the Company historically has generated significant EBITDA and operating cash flows."

Mr. Nagy continued by saying: " During 2001, the company will continue to focus on completing the rationalization of its operating facilities, including the sale of redundant assets, an on-going program which is largely completed. Over the past several years Arctic has invested significantly in capital programs to take advantage of its market presence. I am please to say that this program of capital improvements has also substantially been accomplished. Cash from operations previously allocated to capital upgrades will now be available for other purposes, including the repayment of long-term debt. Additionally, the Company will look to divest of non-strategic assets and use the capital for debt reduction and/or reinvestment into higher return assets."

For further information, call The Arctic Group Inc. TOLL FREE at1-888-573-9237 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.