THE ARCTIC GROUP REPORTS OUTSTANDING 2001 THIRD QUARTER RESULTS

Winnipeg, Manitoba - The Arctic Group Inc., a leading North American producer and distributor of high-quality packaged ice, today announced the best reporting period in the history of the Company for the third quarter ended September 30, 2001. Revenue, EBITDA, margin and net income for the quarter are records for the Company.

Revenues for the third quarter of 2001 were $42 million, 13% higher than last years record revenue of $37.1 million for the same reporting period. Earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA) for the third quarter of 2001 also set a record, reaching $18 million compared to $15.8 million last year; an increase of 13%. Net income in the quarter was $6.9 million, an increase of 24% compared to earnings of $5.5 million in the third quarter of 2000.

Robert Nagy, Arctic Group Chairman and CEO stated; "Revenue and EBITDA growth were the result of favorable weather and organic growth. During the year the Company has continued to develop strategic customer relationships in addition to focusing on business that offers opportunity for growth. As well, the Company continues to benefit from the capital investments made over the past several years to improve our production facilities and distribution infrastructure. We are extremely pleased with our results."

Revenues for the nine months ended September 30, 2001 were $78.2 million compared to $70.5 million for the first nine months of 2000, an increase of 11%. EBITDA for the nine months ended September 30, 2001 increased to $25.3 million, a 12% increase over EBITDA of $22.5 million for the same period of 2000. The net loss for the nine months ended September 30, 2001 was $1.2 million compared to net earnings of $2.8 million in 2000 for the same period. The loss is the result of the non-recurring debt settlement expenses of $4.7 million that were incurred in the second quarter of this year. This was a non-cash loss, and if it was excluded from the results, the earnings for the nine months ended September 30, 2001 would be $3.6 million, an increase of 26% over the same period in 2000.

The Arctic Group is a leading producer, marketer and distributor of high-quality packaged ice 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.