Arctic Glacier Completes Party Time Ice Acquisition

Largest acquisition to date adds C$20 million annual revenues

WINNIPEG, December 31, 2004 – The Arctic Glacier Income Fund (TSX-AG) today announced it has completed the acquisition of the Party Time Ice group of companies, based in Port Huron, Michigan.

With annual sales of approximately C$20 million, Party Time Ice is the largest ice business in Michigan. It serves a population base of more than 10 million people with production facilities in Port Huron, Grayling and Belding and distribution centers in six additional locations throughout the state.

In addition to being accretive to the Fund's distributable cash per unit, the closing of the largest acquisition in Arctic Glacier's history will benefit all unitholders because it:

Provides Arctic Glacier with secure entry into a major U.S. market;

• Enjoys the leading market position in Michigan;
• Provides a platform for smaller acquisitions in the same region;
• Has an efficient production capacity exceeding 1,000 tons per day;
• Distributes from nine locations throughout its market area; and
• Furnishes product to an established network of more than 8,000 retail outlets.

"This acquisition is another step toward our goal of establishing Arctic Glacier® Premium Ice as a leading North American brand," said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund's operating company. He noted Chuck Knowlton, Vice President of Party Time Ice, will remain with the company and help to lead Arctic Glacier's growth in the region.

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

In conjunction with this acquisition, Arctic will issue the remaining US$15 million of senior secured notes under the US$60 million senior secured note facility established with John Hancock Life Insurance Company earlier this month. Similar to the first notes issued under this facility, they are denominated in US dollars, mature on January 1, 2010 and bear interest at a fixed rate of 5.35% per annum.

"Prior to undertaking this transaction we ensured it met the Fund's acquisition criteria," added Mr. McMahon. "In particular, it will be accretive to distributable cash per unit."

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 25 production plants and 41 distribution facilities across Canada and the central and northeastern United States servicing approximately 50,000 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.

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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.