Arctic Glacier Earns Record $10.8 Million In 2003
Finished year with $50 million of capital available for growth

WINNIPEG, April 7, 2004 – The Arctic Glacier Income Fund (TSX-AG.UN) today announced results for the three months and year ended December 31, 2003.

Highlights:
    •  Record sales for 2003 of $97.2 million
    •  Record earnings of $10.8 million for the year
    •  Two equity offerings raised $75 million for growth
    •  Four major acquisitions during the summer and fall
    •  Three franchise deals completed

"During the summer and fall of 2003, the Fund made a strategic move to enter the key northeastern U.S. market.  We acquired four of the largest ice producers in the densely populated cities of Philadelphia and New York City," said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund’s operating company.  "These acquisitions give Arctic Glacier a solid base of operations to grow from in this key market.  Because of the timing of the acquisitions their contribution to distributable cash for 2003 has been minimal; however for 2004, the Fund will benefit from the full impact of the accretive nature of these operations."

The Fund ended 2003 in a very strong financial position, with $50 million of capital available to make accretive acquisitions. Subsequent to year end, in March Arctic Glacier acquired another large ice producer in the New York and New Jersey markets, Leisure Time Ice, further contributing to its base of operations in the densely populated northeastern U.S.

"The Fund acquired Springdale Ice Company and Diamond Ice Cube Company Inc. in the key New York City market," noted Mr. Nagy.  "These companies are an excellent fit with Arctic Glacier’s acquisitions of Rosenberger Ice and Brandywine Ice in the metropolitan Philadelphia market."

Distributable cash for 2003 totaled $17.8 million, or $0.98 per unit.  However, this figure was impacted directly by the timing of acquisitions and related financings during the year.  The summer months are the key drivers in the packaged ice business.  The Springdale, Diamond and Brandywine acquisitions were completed after this peak point in the sales season.  As a result, Arctic Glacier realized minimal contributions from the prime selling months, while at the same time absorbing all of the fourth quarter operating losses that are typical of the packaged ice industry.

The financing for these acquisitions included proceeds from units issued through the 2003 equity offerings. Because of the seasonal nature of Arctic Glacier’s business, monthly distributions are equalized over the course of the year, and the impact of paying distributions on units issued to fund acquisitions is disproportionate to the distributable cash generated by the related acquisitions, which would generally be concentrated in the prime spring and summer months. Distributable cash was also reduced by higher infrastructure outlays undertaken in preparation for the acquisitions.

"If the acquisitions and financings had been in place at the outset of 2003, pro forma annualized distributable cash would have been $22.1 million or $1.11 per unit," said Keith McMahon, Executive Vice President and Chief Financial Officer.  "That is marginally less than $1.12 per unit in 2002, principally due to the stronger Canadian dollar offsetting accretion provided by acquisitions in 2003."

At the end of the year, the Fund had $30.7 million of proceeds remaining from the October equity offering, which, when combined with the additional debt that would be placed on acquisitions, results in $50 million of capital available to fund growth in 2004.

Fourth Quarter Financial Review

Arctic Glacier increased sales 38% from the fourth quarter of 2002, to a total of $15.7 million.  Most of this gain was due to Arctic Glacier’s acquisitions in the northeastern U.S.  The increased business volume added to a 13% year-over-year sales improvement in previously serviced markets due to more favorable weather compared to the same period in 2002.  These gains were partially offset by the stronger Canadian dollar, which reduced reported sales by $1.4 million.

Earnings before interest, taxes, amortization and non-recurring expenses (EBITDA) are normally negative in the first and fourth quarters due to seasonality of the packaged-ice business.  EBITDA for the fourth quarter of 2003 broadened to a negative $0.6 million from negative $0.5 million in 2002.  This was anticipated as acquisitions increased the size of operations.

Interest expense for the quarter totaled $0.3 million, down 53% from the same period in 2002. This resulted mainly from lower interest rates, reduced debt as a result of temporarily applying undeployed proceeds from the October equity offering against the credit facility, and the stronger Canadian dollar, which decreased the Canadian-dollar value of interest paid in U.S. funds.

The Fund declared distributions to unitholders totaling $6.2 million or $0.2676 per unit during the quarter.  This equates to an annual rate of $1.07 per unit.

Fiscal 2003 Financial Review

For the year ended December 31, 2003, sales increased 6% to $97.2 million.  The increase was primarily due to acquisitions in the Pennsylvania and New York markets, combined with a 0.2% increase in previously serviced markets.  In 2003, weather patterns returned to more normal patterns, although eastern Canadian markets tended to be cooler than seasonable during the spring and early summer.  Consumption of packaged ice increased during the northeastern power blackout in August, but the gain was partly offset by costs of transporting additional product into the affected areas.  Sales were also negatively impacted in eastern Canadian markets by SARS.  The stronger Canadian dollar had the effect of decreasing the Canadian-dollar value of 2003 sales in U.S. markets by $6.2 million.

EBITDA for 2003 totaled $24.5 million, off 2% from the previous year.  The principal reason was the timing of several major acquisitions late in 2003, when Arctic Glacier is normally only marginally profitable or operates at a loss. The same variables that negatively impacted sales also depressed EBITDA.

Interest expense dropped 59% from 2002 to $1.6 million, the result of reduced debt, lower interest rates and the appreciating Canadian dollar.

Net earnings increased to $10.8 million from $9.2 million.  That equates to $0.59 per unit (basic), down from $0.67 per unit (basic) in 2002 owing to the higher number of units due to the two equity offerings during 2003.

Financial position

Arctic Glacier ended the year with a very strong balance sheet.  The Fund’s acquisitions during 2003 were financed with the proceeds from two equity financings and bank debt. At year end, total debt outstanding was $32.0 million, down from $54.3 million at the same time in 2002.  The net debt to equity ratio improved to 0.1:1 from 0.4:1 at December 31, 2002.  In addition, the Fund had working capital of $12.1 million, of which $11.0 million was cash.

Strong growth outlook

Subsequent to year end 2003, Arctic Glacier acquired Leisure Time Ice in upstate New York.  Leisure Time is one of the leading ice companies in the northeastern United States and the acquisition further consolidates Arctic Glacier’s prominent market presence in the region.

Arctic Glacier is in a strong position to continue making accretive acquisitions.  The Fund’s current focus remains the northeastern U.S., which is the most densely populated region of North America.  The Fund’s penetration of this key market continues to be a strategic priority.  Management is currently considering a number of prospects and will remain vigilant for additional opportunities as they arise.

This news release 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 news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

EBITDA, distributable cash and pro forma distributable cash are not recognized measures under Canadian generally accepted accounting principles (GAAP).  EBITDA is defined as earnings before interest, taxes, amortization and non-recurring expenses including acquisition integration charges that are one-time costs unique to each individual acquisition.  EBITDA is a performance metric used by many investors to provide an indication of cash available for distribution from ongoing operations prior to debt service, capital expenditures and income taxes and is often used to compare companies and Income Funds on the basis of ability to generate cash from ongoing operations.  Distributable cash and pro forma distributable cash are performance metrics used by many investors to summarize the funds available for distribution to unitholders in an Income Fund.  Investors should be cautioned that EBITDA, distributable cash and pro forma distributable cash should not be construed as alternatives to net income, cash from operations or other financial measures determined in accordance with GAAP as indicators of the Fund’s performance.  The Fund’s method of calculating EBITDA, distributable cash and pro forma distributable cash may differ from other companies and Income Funds and, accordingly, may not be comparable to measures used by them.

 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 22 production plants and 34 distribution facilities across Canada and the central and northeastern United States servicing more than 40,000 retail accounts.

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.

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

Interim Consolidated Statements of Operations
Three and twelve months ended December 31, 2003 and 2002

Interim Consolidated Statements of Cumulative Earnings
Three and twelve months ended December 31, 2003 and 2002

Interim Consolidated Statements of Cash Flows
Three and twelve months ended December 31, 2003 and 2002

Schedule of Distributable Cash
Twelve months ended December 31, 2003 and 2002 (unaudited)