ARCTIC GLACIER ANNOUNCES TAX DEFERRAL RATE OF 46.5% FOR 2003

WINNIPEG, February 27, 2004 – Arctic Glacier Income Fund (TSX:AG.UN) today announced the return of capital allocation for distributions in 2003 is 46.5 percent, exceeding the original estimate of 40 percent. The return of capital portion provides holders of trust units with significant tax deferral opportunities.

The estimate had been prepared on the basis that total distributions in 2003 were anticipated to consist of 40 percent return of capital and 60 percent other taxable income. Year end calculations determined that the actual tax allocation is 46.5 percent return of capital and 53.5 percent other taxable income. The detailed tax allocation of each distribution in 2003 is provided in the attached table.

On January 20, 2003, the Fund announced an increase to its monthly cash distribution from $0.0875 per unit to $0.0892 per unit. As a result, the Fund distributed $1.07 per unit in 2003, comprised of $0.4973 tax deferred return of capital and $0.5731 other taxable income.

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 21 production plants and 32 distribution facilities across Canada and the central and northeastern United States servicing more than 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 23.3 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, President & CEO.

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

2003 Cash Distribution Summary for Income Tax Purposes