Arctic Glacier

ARCTIC GLACIER ANTICIPATES MINIMAL EFFECT OF FEDERAL TAX CHANGES

Effective 2011 Fund Tax Rate Projected at Approximately 5% of Distributions

WINNIPEG, February 19, 2007 – Arctic Glacier Income Fund (TSX:AG.UN) today released estimates that indicate a minimal financial effect of proposed federal tax changes to the Fund.

"Our preliminary analysis in conjunction with our professional advisors indicates that Arctic Glacier would fare quite favorably with respect to the proposed new distribution tax," said Keith McMahon, President and Chief Executive Officer of Arctic Glacier Inc., the Fund’s operating company.

The Minister of Finance announced the changes October 31, 2006, issued further guidance on December 15, 2006 and released draft legislation on December 21, 2006. The proposals aim to remove the tax-advantaged status of most income trusts by taxing distributions paid to unitholders in the same manner as dividends paid to shareholders of corporations. In the absence of mitigating factors, the tax would be applied at a rate of 31.5%, beginning in 2011.

A preliminary analysis of the draft legislation indicates that the effect of the tax on Arctic Glacier should be mitigated in three main ways:

1.	The tax should not apply to income derived directly from U.S. operations, which is projected to be approximately 70% of the Fund’s annual taxable income. The U.S.-sourced income is currently being received indirectly by the Fund, but will be restructured before 2011 to have it flow directly into the Fund.

2.	Tax in the Fund’s operating subsidiaries can be further reduced by loss carry-forwards and tax depreciation remaining in Canadian and U.S. operations, which are projected to provide a tax shield until approximately 2016.

3.	The tax should not apply to the return of capital portion of distributions, which currently comprises approximately 50% of the total cash distributions paid to Arctic Glacier unitholders. The proposed return of capital should continue for the foreseeable future.

"Based upon these assumptions and current projections, approximately 15% of our cash distributions would be subject to the new distribution tax in 2011," said Mr. McMahon. "This means that the tax cost to the Fund will be approximately $0.05 per unit starting in 2011."

When combined with the current payout ratio, the Fund does not anticipate any reductions in future cash distributions as a result of the proposed distribution tax.

In addition, the new tax guidelines provide trusts with the ability to pursue growth initiatives via equity financings through to 2011, within certain limits. As presently understood, these "safe harbor" limits will allow Arctic Glacier to continue its growth strategy through acquisitions without accelerating application of the new tax rules.

About Arctic Glacier

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 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 38.5 million trust units outstanding.

Forward-Looking Statements

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.

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Contact Information

For further information please contact Keith McMahon, President & CEO or Doug Bailey, Chief Financial Officer at Arctic Glacier Income Fund.
Toll free phone: 1-888-573-9237 or log on at www.arcticglacier.com

The Toronto Stock Exchange does not approve or disapprove of the adequacy or accuracy of this release.