Arctic Glacier

ARCTIC GLACIER SIGNS FRANCHISE AGREEMENT WITH GIOCONDO BROTHERS ICE OF KANSAS CITY
Agreement establishes significant presence in Kansas City market

WINNIPEG, May 9, 2003 - Arctic Glacier Income Fund (TSX-AG.UN) today announced that Ice Perfection Systems Inc., a subsidiary of its operating company Arctic Glacier Inc., has signed a franchise agreement with packaged ice manufacturer Giocondo Brothers Ice Services Inc. of Kansas City, Missouri.

Giocondo, founded in 1993, has rapidly grown to become one of the leading packaged ice companies in the Kansas City market. Giocondo manufactures ice products in a new facility in Kansas City, distributing throughout the metropolitan and surrounding area.

Under the agreement, Giocondo will produce and market its branded packaged ice products as Arctic Glacier® Premium Ice.

"This agreement solidifies the Arctic Glacier® Premium Ice brand in both the Kansas City metro and central U.S. markets," said Robert Nagy, Chairman and CEO of Arctic Glacier Income Fund. He noted the agreement is Arctic Glacier's third franchise deal in as many months.

"Giocondo is growing its business with innovative market strategies, including heat sealing, recloseable packaging, a product drying system, and impeccable manufacturing practices and quality standards," Mr. Nagy added. "With the demands of our clients of consistent quality and consumer-friendly packaging, the agreement with Giocondo represents a significant step toward our objective of establishing Arctic Glacier® Premium Ice as a recognized brand across North America."

"Partnering with Arctic Glacier has a number of benefits for our company," said Chris Giocondo, President of Giocondo. "The preferred position that Arctic Glacier enjoys with national and regional retailers provides us opportunity to gain competitive advantage and accelerate our growth. This agreement also opens doors to explore purchasing opportunities of poly bags, supplies, merchandising, and marketing materials that may not be readily available to us as a regional company. Giocondo is a growing enterprise with a new facility, and partnering with a company that has the production and marketing resources of Arctic Glacier is of great value."

Ice Perfection Systems Inc., established in 2000, licenses the right to use the trademark Arctic Glacier® Premium Ice from its parent company, Arctic Glacier Inc. Ice Perfection also maintains a North American franchising program in which it enters into agreements with qualified ice manufacturers that meet its quality standards to package and distribute ice products under the brand name Arctic Glacier® Premium Ice throughout specific territories within Canada and the United States.

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 16 production plants and 35 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.

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Contact Information

For further information, call Arctic Glacier Inc. TOLL FREE at 1-888-573-9237 or log on 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.