Arctic Glacier establishes US$60 million senior note facility

New facility to finance acquisitions, stabilize interest costs

WINNIPEG, December 16, 2004 – Arctic Glacier Income Fund (TSX-AG) today announced it has established a US$60 million, long-term senior secured note facility with John Hancock Life Insurance Company.

Under this facility, wholly owned operating company Arctic Glacier Inc. has closed a private placement of US$45 million long-term senior secured notes. The notes, denominated in United States dollars, mature on January 1, 2010 and bear interest at a fixed rate of 5.35 percent per annum.

The facility also permits Arctic Glacier to issue up to US$15 million of additional five-year senior secured notes on or before December 2006. Rates of interest are to be determined at the time of issuance based on prevailing market factors.

Proceeds from the senior secured notes will be used to fund acquisitions, including the previously announced acquisition of the Party Time Ice group of companies in Michigan. Arctic Glacier will also reduce debt outstanding under its existing credit facilities. Further issuances of senior secured notes under the facility are expected to fund future acquisition activity.

"This facility will provide Arctic Glacier with added flexibility as we continue to implement our growth strategy," said Robert Nagy, President and CEO of Arctic Glacier.

In addition, The Toronto-Dominion Bank and Roynat Capital Inc. have extended and amended Arctic Glacier's revolving credit facility. Revised terms provide for a three- year term maturing December 13, 2007 and adjust the banks' commitment to C$53 million. This facility has been jointly collateralized with the John Hancock senior secured note facility on a pari passu basis.

"The terms of the fixed-rate facility provide certainty with respect to interest rate exposure on a significant proportion of our debt," said Keith McMahon, Executive Vice President and CFO of Arctic Glacier. "This enhances the stability of our cash flow and distributions to our unitholders."

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. There are 23.3 million trust units outstanding.

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.

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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.