ARCTIC GLACIER ANNOUNCES FIRST QUARTER 2003 RESULTS

WINNIPEG, May 27, 2003 - Arctic Glacier Income Fund (TSX:AG.UN) today announced financial results for the first quarter ended March 31, 2003.

"Arctic Glacier was quite active during the first quarter, particularly in U.S. markets," said Robert Nagy, Chairman of the Fund and Chairman & CEO of Arctic Glacier Inc., the Fund's operating company. "We increased operations in the U.S. by acquiring the ice division assets of Ice Castles, Inc. of Nebraska and we signed a licensing agreement with Creed Ice Co., Inc. of Rutland, Vermont."

Subsequent to quarter end, Arctic Glacier further broadened its presence in U.S. markets by signing franchise agreements with Getchell Bros. Inc. of Brewer, Maine and Giocondo Brothers Ice Services Inc. of Kansas City, Missouri.

Overall results for the first quarter were consistent with expectations in that sales were low compared to hot summer months, and the company's expenses outpaced revenues.

"When evaluating our results, it is important to understand the seasonal nature of our business," said Keith McMahon, Executive Vice President & Chief Financial Officer. "The first quarter of the year is characterized by very light winter demand for packaged ice. This results in relatively slow sales, negative EBITDA and significant losses. We incur about 25 per cent of our fixed costs in this quarter, but generate less than 10 per cent of our annual sales. Overall, we are pleased with first quarter results and remain confident in our growth strategy."

First Quarter Financial Review

Sales for the first quarter of 2003 totalled $7.6 million, compared to $8.5 million in the same period in 2002. The difference was primarily due to the disposal of certain non-core business operations in western Canada and Texas in the first and second quarters of 2002. These operations had annualized sales of $3.5 million and contributed $0.6 million in sales during the first quarter of 2002.

Sales were also dampened by the stronger Canadian dollar, which decreased the Canadian-dollar value of sales in U.S. markets by $0.3 million, versus the first quarter of 2002.

Earnings before interest, taxes, depreciation, amortization (EBITDA) and non-recurring expenses for the first quarter of 2003 were negative $3.6 million compared to negative $3.2 million in the first quarter of 2002.

The decrease in EBITDA can be attributed to the disposal of non-core business operations in 2002, which contributed $0.2 million in EBITDA during the first quarter of 2002. The change in EBITDA can also be attributed to increased costs incurred in 2003 associated with staffing personnel in key positions for planned growth.

Net loss for the first quarter of 2003 was $3.4 million, an improvement of $0.4 million from a loss of $3.8 million for the same period in 2002. That equates to a loss of $0.21 per unit (basic and diluted) compared to a loss of $0.54 for the same period in 2002.

Cash and cash equivalents totaled $2.6 million at March 31, 2003. This is down from $5.2 million at the end of the same period in 2002, when Arctic Glacier held significant cash balances from the Fund's initial public offering. This cash offset related payables at the end of the quarter.

The Fund declared distributions to unitholders totaling $4.2 million or $0.27 per unit during the quarter ended March 31, 2003. This equates to an annualized distribution rate of $1.07 per unit.

First Quarter Operational Review

Growth through acquisition of packaged ice manufacturers remains a key element of the Fund's long-term strategy.

In the first quarter of 2003, Arctic Glacier completed a transaction to acquire the ice division assets of Ice Castles, Inc. The company is a producer and distributor of packaged ice products, serving central and western Nebraska from manufacturing and distribution facilities in Grand Island, North Platte and Gering.

In February, the Fund also announced that Arctic Glacier subsidiary Ice Perfection Systems Inc. signed a franchising agreement with Jim Creed, President of Creed Ice Co., Inc. of Rutland, Vermont. Ice Perfection Systems is the unit through which Arctic Glacier franchises use of its trademark Arctic Glacier® Premium Ice.

Established in 1927, Creed Ice is one of the largest independent packaged ice companies in the northeast U.S, serving markets in Vermont, New Hampshire, Massachusetts and New York.

Subsequent to quarter end, the Fund announced the signing of a franchise agreement between Ice Perfection Systems and ice manufacturer Getchell Bros. Inc. of Brewer, Maine.

"Developing a strong market presence in this key market area of the U.S. is an important step in our objective of establishing Arctic Glacier® Premium Ice as a recognized brand across North America," noted Mr. Nagy.

Outlook

Going forward, Arctic Glacier is in an exceptionally strong position to continue organic growth and is examining opportunities for accretive acquisitions. Long-term unitholder value will be generated by efficient operations, well-established market share, a solid financial position and seasoned management team that make Arctic Glacier a highly competitive player.

Forward Looking Statements

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.

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 34 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.arcticglacier.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.

Interim Consolidated Balance Sheets
As at March 31, 2003 and 2002 (unaudited) and December 31, 2002 (audited)

Interim Consolidated Statements of Operations
Three months ended March 31, 2003 and 2002 (unaudited)

Interim Consolidated Statements of Deficit
Three months ended March 31, 2003 and 2002 (unaudited)

Interim Consolidated Statements of Cash Flows
Three months ended March 31, 2003 and 2002 (unaudited)