Arctic Glacier Acquires Losquadro Ice

Acquisition in New York City market adds C$10 million annual revenues

WINNIPEG, December 29, 2004 – The Arctic Glacier Income Fund (TSX-AG) today announced it has acquired the assets of the Losquadro Ice Group in New York City and adjoining areas.

Losquadro comprises several companies with annual revenues of approximately C$10 million. They operate where Arctic Glacier currently has a minimal presence, holding majority market share in Brooklyn, Queens, Staten Island and Long Island. The group also has operations in northern New Jersey.

Arctic Glacier will acquire two production facilities in Brooklyn, New York and Roselle Park, New Jersey. Daily production totals 500 tons of ice, of which 400 tons is produced at the main plant in Brooklyn.

"This acquisition complements Arctic Glacier’s existing operations in Manhattan, Bronx, Westchester county and northern New Jersey," said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund’s operating company.

Arctic Glacier first entered the New York City market in July 2003 with the acquisition of Saxony Ice of Mamaroneck, N.Y. and Diamond Ice of Bronx, N.Y. In March 2004 it expanded its presence in the area surrounding New York City and entered the northern New Jersey market by acquiring the ice division assets of A.T. Reynolds & Sons, Inc. of Kiamesha Lake, N.Y.

"Our growth strategy emphasizes the building of a strong market presence in the northeastern U.S. and making investments that are accretive to distributable cash," said Mr. Nagy. "The purchase of Losquadro is another step toward the execution of that strategy."

"A key aspect of this acquisition is the distribution synergies that Losquadro will provide in this huge market," added Keith McMahon, Executive Vice President and CFO of Arctic Glacier. He noted the acquisition will be financed from proceeds of the Fund’s recently completed US$60 million senior note facility, arranged with John Hancock Life Insurance Company.

Losquadro, which has been family owned since 1928, will continue to be managed by four current principals who have agreed to remain as Arctic Glacier employees.

"We are pleased and excited that Arctic Glacier is acquiring our operations and integrating them with theirs," said Tony Piccolo, President of the Losquadro Ice Group. "The combined company will be larger and stronger than either could be as independent operators in the New York City area."

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 35 distribution facilities across Canada and the central and northeastern United States servicing more than 41,000 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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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.