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ARCTIC GLACIER ACQUIRES SAXONY ICE AND DIAMOND ICE WINNIPEG, July 25, 2003 - The Arctic Glacier Income Fund (TSX-AG.UN) today announced its operating company, Arctic Glacier Inc., has established a substantial presence in the New York City region with the acquisition of all of the issued and outstanding common shares of Springdale Ice Company of Mamaroneck, NY, which operates under the name Saxony Ice, and its affiliated company Diamond Ice Cube Company Inc. of Bronx, NY. The acquisition was funded with bank debt and proceeds from Arctic Glacier's June offering of income trust units. "This acquisition is the largest that Arctic Glacier has made since it was founded seven years ago," said Robert Nagy, President and CEO of Arctic Glacier Inc. "Our growth strategy emphasizes the building of a strong market presence in the northeastern U.S. and making investments that are accretive to distributable cash. The purchase of Saxony Ice and Diamond Ice is a major step toward the achievement of that strategy." Saxony and Diamond, with annual combined revenue of approximately C$16 million, rank among the largest and most respected companies in the packaged ice and related products business in the northeastern U.S. Saxony operates a manufacturing facility in Mamaroneck, NY, where it manufactures and distributes ice and operates a retail and wholesale equipment sales and leasing business in and around New York City. Diamond operates a distribution center in the Bronx, distributing ice primarily to restaurants, hotels and caterers in Manhattan and the Bronx. "We are very excited to be joining Arctic Glacier," said Jeff Hendler, President of Saxony Ice. "We believe Saxony and Diamond's market share, geographic coverage and efficient facilities, combined with Arctic Glacier's leadership, market presence and capital, will enable the combined company to achieve new levels of performance." The current principals of Saxony and Diamond will remain with Arctic Glacier and will be instrumental in running the acquired operations. Paul Hendler will become regional manager of the New York region, Jeff Hendler will be manager of equipment sales and leasing, and Les Hendler will be distribution manager for the Bronx facility. Saxony and Diamond currently employ approximately 75 permanent staff and 50 seasonal people. The addition of these personnel would lift Arctic Glacier's total employee count to 600 permanent staff and a total of 1,025 in peak season. The Saxony and Diamond acquisitions build on Arctic Glacier's penetration of the northeastern U.S. market that began in February with a licensing agreement signed with Creed Ice Co., Inc. of Vermont followed in April by a licensing agreement signed with Getchell Bros. Inc. of Maine. This was followed in June by the acquisition of Rosenberger Ice of Pennsylvania, with annual sales of C$5 million. 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 20 production plants and 35 distribution facilities across Canada and the central and northeastern United States servicing approximately 40,000 retail accounts. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 18.31 million trust units outstanding.
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, President & CEO. The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.
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