ARCTIC GLACIER ANNOUNCES APPOINTMENT OF KEITH MCMAHON AS PRESIDENT & CEO

Robert Nagy retiring; to become Vice Chairman

Douglas Bailey named new Chief Financial Officer

WINNIPEG, September 29, 2006 – Arctic Glacier Income Fund (TSX:AG.UN) today announced the appointment of Keith McMahon as President and Chief Executive Officer of Arctic Glacier Inc., the Fund’s operating company. He succeeds Robert Nagy, who is retiring from management. Mr. Nagy will be continuing as a trustee, assuming the role of Vice Chairman.

The Fund also announced two other appointments: Douglas Bailey, currently Vice President of Accounting and Corporate Controller, will replace Mr. McMahon as Chief Financial Officer; and Frank Larson, currently Senior Vice President, Operations, will become Executive Vice President, Operations. The changes are effective December 29, 2006.

“The Board of Trustees is pleased to welcome Keith McMahon to the helm of Arctic Glacier, as his promotion provides a seamless transition within the executive management team,” said James Clark, the Fund’s Chairman. “Keith played an instrumental role in the reorganization of Arctic Glacier into an income trust in 2002. In addition, he has led all significant acquisitions, equity offerings and debt financings since then that have enabled the Fund to execute its growth strategy. His selection has the unanimous support of the board.”

Mr. McMahon was one of the architects who helped lead Arctic Glacier’s reorganization to an income trust and concurrent $85 million IPO in 2002. Since then he has led four public unit offerings that raised approximately $175 million, a public offering of $100 million of convertible debentures, as well as the placement of US$60 million of fixed rate senior notes. Over the past five years he has been instrumental in the successful acquisition and integration of 11 packaged ice businesses involving 32 companies as part of the Fund’s acquisition and rationalization strategy.

Mr. Nagy is retiring to be Vice Chairman of the Fund after spending 35 years in the packaged ice industry. As president and CEO, he was the visionary who led the strategy of building Arctic Glacier into the second largest North American packaged ice company. With his vision and leadership, the Company has grown from $5 million in 1997 sales to an international company with $250 million in current annualized sales. He was the architect of Arctic Glacier’s acquisition and product branding strategies and initiated the Company’s conversion to an income trust in 2002.

In his new role as Vice Chairman, Mr. Nagy will continue to work with senior management on broad strategic issues. “I intend to remain a significant unitholder and my new role allows me to focus on strategic objectives and the continued growth strategy of the Fund,” said Mr. Nagy.

Mr. Nagy assumes the role of Vice Chairman from The Honourable Gary Filmon, P.C., who has served in that capacity since May 2003. Mr. Filmon has been a trustee of the Fund since its inception in 2002 and has been a director of Arctic Glacier Inc. since 2000. Mr. Filmon will continue as a trustee and director as well as serving as Chair of the Audit Committee and member of the Corporate Governance Committee.

“We thank Bob Nagy for his many years of service,” said Mr. Clark. “Bob has grown Arctic Glacier from a modest, private western Canadian company to a major North American manufacturer and distributor of premium quality packaged ice, publicly traded on the Toronto Stock Exchange. His decision to change roles follows the successful acquisition and integration of California Ice, which is the largest transaction in the Company’s history. Most importantly, he built a strong leadership team comprised of capable individuals who are prepared to lead the Company through its next period of growth.”

“Bob Nagy’s legacy is Arctic Glacier’s profitability and growth, which I intend to continue,” said Mr. McMahon. “The current industry environment provides opportunities for further expansion, and I look forward to leading Arctic Glacier to its next level.”

Mr. McMahon joined Arctic Glacier as Chief Financial Officer in 2001, with the title Executive Vice President added in 2003. A senior operational and financial executive with 20 years of experience, Mr. McMahon has an extensive background in manufacturing and distribution environments. Prior to joining Arctic Glacier, Mr. McMahon was a senior executive with the Canadian Wheat Board and had previously been an Audit and Corporate Services Manager with Deloitte & Touche LLP. Mr. McMahon is a member of the Institute of Chartered Accountants of Manitoba, and holds Bachelor of Science and Bachelor of Commerce degrees from the University of Manitoba.

Mr. Bailey joined Arctic Glacier as Corporate Controller in 2003, with the title Vice President of Accounting added earlier this year. Before joining Arctic Glacier, Mr. Bailey was Controller for 10 years with Comark Inc., a retail multi-brand clothing company with more than 400 stores. Prior to Comark, Mr. Bailey was a Senior Audit and Assurance Manager with Deloitte & Touche LLP. Mr. Bailey is a member of the Institute of Chartered Accountants of Manitoba, and holds a Bachelor of Commerce degree from the University of Manitoba.

Mr. Larson has 19 years of experience in the packaged ice industry. He joined Arctic Glacier as Regional Manager, Minnesota in 1999. In 2001 he was promoted to Vice President, U.S. Operations and has held his current position of Senior Vice President, Operations since 2003. Prior to joining Arctic Glacier, Mr. Larson had been with Best Foods for 10 years. He holds a Bachelor of Arts in Economics from Gustavus Adolphus College in St. Peter, Minnesota.

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 36 production plants and 50 distribution facilities across Canada and the northeast, central and western United States servicing more than 68,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 32.6 million trust units outstanding.

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Contact Information

For further information please contact Robert Nagy, President & CEO or Keith McMahon, Executive VP & Chief Financial Officer at Arctic Glacier Income Fund.

Phone: 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.