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Arctic Glacier Announces Acquisition Of Largest Ice Company in Upstate New York Acquisition adds $10 million to annual revenues WINNIPEG – June 15, 2006 – The Arctic Glacier Income Fund (TSX:AG.UN) today announced it has expanded its coverage of the key upstate New York market with the acquisition of the assets and operations of Happy Ice LLC of Fairport, New York. Happy Ice operates a production plant in Fairport and four distribution centers located in Albany, Buffalo, Corning and Utica, New York. The company is the leading provider of packaged ice in upstate New York, serving major markets including Buffalo, Rochester, Albany, Syracuse and portions of northeastern Pennsylvania. "With this acquisition we have solidified our position as the leader in New York, one of our most important markets," said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund’s operating company. "This transaction also supports our strategy of making geographically contiguous transactions, providing us with seamless market coverage in Ontario, Quebec and the Northeastern U.S. and permitting us to leverage synergies and operational efficiencies." The acquisition of Happy Ice is expected to increase Arctic Glacier’s annual revenues by $10 million to approximately $250 million. The acquisition will be funded partially from the proceeds of Arctic Glacier’s previously announced financing in May 2006, plus credit available under the Fund’s bank credit facility. "This acquisition provides us with attractive future growth opportunities and we expect it will be accretive to distributable cash in its first full year of operations," said Keith McMahon, the Fund's Executive Vice President and CFO. "By extending our coverage to include the entire state, we expect to achieve additional synergies from our new plant which was built last year in Newburgh, New York." Kerry Chamberlin, President of Happy Ice, has been in the packaged ice industry since 1975. The company and its predecessors have been serving upstate New York since 1929. Happy Ice is one of the largest independent ice manufacturers in the Northeastern U.S., producing over 350 tons of packaged ice per day. 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 34 production plants and 47 distribution facilities across Canada and the central, midwest, northeastern and west coast United States, servicing more than 65,000 retail accounts. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. 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. -- 30 -- Contact Information |