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ARCTIC GLACIER ACQUIRES ICE DIVISION OF A. T. REYNOLDS & SONS,
INC. WINNIPEG, March 3, 2004 – The Arctic Glacier Income Fund (TSX-AG.UN) today announced its operating company, Arctic Glacier Inc., has acquired the ice division assets of A.T. Reynolds & Sons, Inc. of Kiamesha Lake, New York. The division, which operates under the trade name of Leisure Time Ice, is the market leader in its area and is one of the largest producers and distributors of packaged ice in the northeastern U.S. Annual sales total over C$5 million in markets that include central New York state, New York City, northern and central New Jersey and northeastern Pennsylvania. Founded in 1884, Leisure Time Ice is one of the oldest established family-owned ice producers in the U.S. The firm’s President is Harold B. Reynolds, a 3rd generation descendant of its founder. The company has a manufacturing plant in Kiamesha Lake and distribution centers in Newburgh, New York and Raritan, New Jersey. “The purchase of Leisure Time Ice is a continuation of our growth strategy of building a strong market presence in the northeastern U.S. and making investments that are accretive to distributable cash,” said Robert Nagy, President and CEO of Arctic Glacier. “The acquisition of Leisure Time Ice will also provide Arctic Glacier with significant production and distribution efficiencies in the northeastern U.S. market,” added Keith McMahon, Executive Vice President and CFO of Arctic Glacier. “As a family business for four generations, it was important to us to sell our business to an enterprise that shares our vision and values,” said Mr. Reynolds. “This is what has enabled us to build a successful ice and water business over the past 120 years. A. T. Reynolds will now be able to concentrate on promoting our water division, Leisure Time Spring Water.” The acquisition was funded with proceeds from the Fund’s $50 million offering of trust units in October 2003. The Fund will continue to pursue near-term acquisition opportunities of high quality businesses operating in the packaged ice industry. The Leisure Time Ice acquisition builds on Arctic Glacier’s growing presence in the northeastern U.S. market. It began in February 2003 with a licensing agreement signed with Creed Ice Co., Inc. of Vermont, followed in April by a licensing agreement signed with Getchell Bros. Inc. of Maine. In June, Arctic Glacier acquired Rosenberger Ice, with annual sales of C$5 million, followed in July with the acquisition of Springdale Ice Company of Mamaroneck, New York and its affiliated company, Diamond Ice Cube Company Inc. of Bronx, New York, with sales of C$16 million. In October Arctic Glacier acquired Brandywine Ice Company of Twin Oaks, Pennsylvania, with sales in excess of C$7 million. 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 22 production plants and 34 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. -- 30 -- Contact Information
(Signed) On behalf of the Board of Trustees of Arctic Glacier Income Fund, Robert Nagy, President & CEO. The Toronto Stock Exchange does not approve or
disapprove of the adequacy or accuracy of this release. |