Arctic Glacier Announces Largest-Ever Acquisition

Signs agreement to acquire Michigan-based Party Time Ice

WINNIPEG, November 8, 2004 – The Arctic Glacier Income Fund (TSX-AG.UN) today announced it has entered into an agreement to purchase the Party Time Ice group of companies based in Port Huron, the largest ice company in Michigan.

With annual sales of approximately $20 million, Party Time Ice serves Michigan’s population base of more than 10 million people with production facilities in Port Huron, Grayling and Belding.

“This is the largest acquisition in our history and it gives us greatly expanded scale and scope in a major U.S. market,” said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund’s operating company. “Party Time Ice is well respected throughout our industry and has a leading market position in Michigan. Our entry into this market is another step toward our goal of establishing Arctic Glacier® Premium Ice as a leading North American brand.”

Founded in 1967, Party Time Ice has production capacity exceeding 1,000 tons per day and 10 distribution locations that provide packaged ice to more than 8,000 retail outlets. The metropolitan Detroit market is serviced by distribution facilities at Ypsilanti, River Rouge and Shelby. These facilities can store and distribute in excess of two million packages of ice to meet heavy demand during hot weather.

Keith McMahon, Executive Vice President and CFO of Arctic Glacier Inc., said the Fund intends to finance the acquisition through a combination of debt and the balance of proceeds from earlier equity offerings.

“The Fund expects the transaction will close before the end of the year and that it will be accretive to distributable cash per unit,” said Mr. McMahon. “Early in the new year, we will evaluate a possible increase in the rate of cash distributions to unitholders.”

This acquisition will enhance Arctic Glacier’s ability to integrate supply chains across North America to meet customers’ demands in various market conditions. The acquisition is consistent with the company’s approach to executing its growth strategy through geographically contiguous transactions.

Chuck Knowlton, Vice President of Party Time Ice, will remain with the company and help to lead Arctic Glacier’s growth in the region.

“We built our business to become the largest packaged ice supplier in Michigan,” said Mr. Knowlton. “This transaction enables us to continue growing with the full support of Arctic Glacier, a North American industry leader.”

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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Contact Information

Robert Nagy, President & CEO or Keith McMahon, Executive Vice President & CFO of Arctic Glacier Inc.

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

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