ARCTIC GLACIER SIGNS FRANCHISE AGREEMENT WITH BAKER’S ICE IN MISSOURI

Agreement adds market coverage of St. Louis, outlying regions

WINNIPEG, September 28, 2004 – Arctic Glacier Income Fund (TSX-AG.UN) announced today that Ice Perfection Systems Inc., a subsidiary of its operating company Arctic Glacier Inc., has signed a franchise agreement with packaged ice manufacturer Baker’s Ice Company, Inc., of Pacific, Missouri. Under the agreement, Baker’s Ice will market its branded packaged ice product as Arctic Glacier® Premium Ice.

Baker’s Ice is one of the largest packaged ice manufacturers in the Midwestern U.S. The company distributes throughout metropolitan St. Louis and the central and southeast Missouri market areas.

Baker’s Ice produces packaged ice at its state-of-the-art manufacturing facility in Pacific, Missouri, a suburb of St. Louis. Opened in 1996, the plant has a current capacity of 200 tons per day and is designed for a maximum of 500 tons per day.

“Baker’s Ice market share, industry reputation and commitment to quality make it an outstanding addition to our franchise program,” said Robert Nagy, President and CEO of Arctic Glacier. “This agreement further expands the Arctic Glacier® Premium Ice brand in metropolitan St. Louis and the central and southeastern Missouri markets. Building a strong presence in these markets is another step in our goal of establishing Arctic Glacier® Premium Ice as a leading brand across North America.”

Baker’s Ice, founded more than 40 years ago, is still owned and operated by the Baker family. The company has a long history of success, growth and support of various industry organizations, including the Missouri Valley Ice Association and the International Packaged Ice Association.

“This franchise agreement is an important step for the continued growth of our company,” said Tim Baker, President of Baker’s Ice. “Our focus is to continually add value for our customers, employees, and our company. Linking Baker’s Ice with Arctic Glacier -- the premier packaged ice company in North America -- increases the resources at our disposal and provides a broader range of services and benefits for our customers and employees alike.”

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 20 production plants and 35 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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For further information please contact Robert Nagy, President & CEO or Keith McMahon, Executive VP & Chief Financial Officer at Arctic Glacier Inc.

Phone: Toll free: 1-888-573-9237 or logon at www.arcticglacier.com

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