ARCTIC GLACIER INCOME FUND REPORTS 2002 FIRST QUARTER RESULTS

WINNIPEG, May 30, 2002 - The Arctic Glacier Income Fund today reported operating results for the first quarter ended March 31, 2002. The results of the Arctic Glacier Income Fund include the operations of The Arctic Group Inc. prior to its reorganization into the Arctic Glacier Income Fund on March 22, 2002.

Sales for the first quarter of this year were $8.5 million, a 4% increase compared to $8.2 million in the first quarter of 2001. Earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA) were negative $3.2 million compared to negative $2.5 million for the first quarter of 2001. The net loss for the first quarter of 2002 was $3.8 million or $0.54 per unit, compared to a net loss of $5.7 million or $0.94 per unit for the first quarter of 2001. The decrease in net loss is primarily the result of non-recurring gains on settlement of long-term debt and sale of non-core assets in the first quarter of this year, along with a change in Canadian accounting standards that eliminates the amortization of goodwill.

Arctic Glacier Income Fund CEO, Robert Nagy stated "Operating results for the first quarter of 2002 were within our expectations. Arctic had budgeted for increased negative EBITDA in the first quarter of the current year for a number of reasons. The weaker Canadian dollar compared to last year has increased the impact in Canadian dollars of the negative EBITDA generated by our U.S. operations during the first quarter of the year. In addition, we chose to make strategic changes to the distribution infrastructure in one of our key markets. As a result, the Company incurred increased fixed costs during the first quarter of this year but will realize reduced operating costs during the busy summer season. The Company also incurred planned short-term costs associated with the final phase of centralizing accounting and administrative functions into head office. This initiative will be completed in the second quarter, and will result in improved efficiency."

Mr. Nagy continued: " It is important to keep in mind the seasonality of our business. The packaged ice industry, particularly in Canada and the northern portions of the United States, where the majority of our operations are located, is affected by seasonal weather patterns. Demand for our ice products in the winter is very light, resulting in negative EBITDA and significant losses in the first quarter of each year. During the first quarter of the year, Arctic's sales are less than 10 percent of our annual total. During this same period, however, we incur 25 percent of our annual fixed costs including interest, depreciation and amortization. It is the second and third quarters of the year that are the financial drivers for Arctic, when we have historically generated significant EBITDA and operating cash flows."

Mr. Nagy continued: "We continue to see opportunities for growth and increased efficiencies. Our recent reorganization into an income trust has substantially reduced debt and strengthened our financial position. Arctic's strong and reliable annual cash flows make the income trust an ideal structure for our unitholders. We have built a solid business platform from which we can continue to expand our market area and strengthen our competitive position. Our objectives are to generate stable monthly cash distributions and to grow distributable income. The Fund expects to make annualized distributions of $1.05 per unit. We have already paid our initial distribution of $0.115 for the 40 days ended April 30, and will pay our first regular monthly distribution of $0.0875 on June 14."

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice to consumers in Canada and the United States under the brand name of Arctic Glacier Premium Ice. Arctic Glacier operates 17 production plants and 32 distribution facilities across Canada and the central United States servicing 35,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 15.65 million trust units outstanding.

This document contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this document, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

For further information, call Arctic Glacier Inc. TOLL FREE at 1-888-573-9237 or visit Arctic Glacier’s Web Site at www.arcticglacierinc.com.

(Signed)
On behalf of the Board of Trustees of Arctic Glacier Income Fund,
Robert Nagy, Chairman & CEO.

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