ARCTIC GLACIER EARNS $4.1 MILLION IN Q2 of 2002

WINNIPEG, August 26, 2002 – The Arctic Glacier Income Fund today reported financial results for the second quarter ended June 30, 2002.

Arctic generated a record level of second quarter earnings from operations and net income this year. Earnings from operations for the second quarter increased by 33% to $6.1 million. This represents a $1.5 million increase compared to $4.6 million earnings from operations for the same period last year, largely due to significantly reduced interest costs with the new capital structure.

Net income for the second quarter reached $4.1 million or $0.26 per unit, an improvement of almost $6.5 million or $0.66 per unit over last year. Last year’s results included a one-time loss of $4.7 million ($4.1 million after tax) to settle convertible debentures and cancel the conversion privilege. Also, new accounting rules took effect on January 1, 2002 that eliminated the amortization of goodwill charges this year, resulting in a savings of $0.5 million for the second quarter of 2002. Even if we exclude the after tax impact of these two items, the improvement over last year is almost $2.0 million. Net income for the six months to date totals $0.4 million or $0.02 per unit, an improvement of $8.4 million or $1.37 per unit compared to a loss of $8.0 million or $1.35 per unit for the same period last year.

Sales and earnings before interest, taxes, depreciation, amortization and non-recurring expenses (EBITDA) were impacted by unseasonably cool spring temperatures in our key Canadian and northern U.S. markets. In addition, Arctic disposed of two non-core businesses, not in the packaged ice sector, during the first half of 2002, including one in Texas during the second quarter. As a result, sales for the second quarter totaled $27.1 million, a decrease of 3% compared to last year’s record level of $27.9 million. For the first six months of 2002, revenues total $35.7 million which is only about 1% behind last year’s record pace of $36.2 million. EBITDA was $9.1 million for the quarter compared to $9.8 million for the same period last year.

The Fund declared distributions to unitholders totaling $4.5 million or $0.29 per unit during the quarter, including an initial distribution of $0.115 per unit for the 40 day period from March 22 to April 30, and $0.0875 per unit for each of May and June. On an annualized basis, the distributions to unitholders for 2002 are expected to be approximately 60% interest income and 40% return of capital.

Robert Nagy, Chairman and CEO of the Arctic Glacier Income Fund stated “ The second quarter presented us with some challenges. Weather was disappointing, with unseasonably cool temperatures across much of our market area, but our management team in the field did a terrific job controlling operating costs. We face significant ramp-up costs during the second quarter each year as we prepare for our busy summer season. Distribution fleets are increased with
short-term rentals, inventory levels are increased, and seasonal production and distribution staff are hired and trained. Although we can cut some of our operating costs during the second quarter if spring sales results are below target levels, these ramp-up activities are not variable as they are critical to Arctic being prepared for the busy summer season.”

Mr. Nagy continued: “As is the case virtually every year, favorable summer weather finally did arrive and all of our operating regions were well prepared. In fact, most of our operating regions experienced normal or above normal weather conditions during the latter part of June and throughout the month of July. It is important to keep in mind the seasonality of our business. Demand for our ice products is very light during the first quarter of each year, picking up in the spring. We incur losses during the first quarter of each year, and earn modest income during May and June. The third quarter of the year is really the financial driver for the Company.”

Mr. Nagy also noted: “The Arctic Glacier Income Fund has a solid capital structure and the Fund’s operating company, Arctic Glacier Inc. has a strong base of operations across much of Canada and the central United States. In addition to organic growth, opportunities continue to exist for growth through acquisition. The Fund intends to build a solid track record of distributions and, at the appropriate time, will build upon its market position and enhance distributions by making selective, accretive acquisitions where a dominant market position can be acquired or developed. We believe that during this time of market turmoil and uncertainty our investor base will value our cautious approach to growth and our focus on generating distributable cash.”

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 15.66 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 the Arctic Glacier 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.