Arctic Glacier Income Fund

Arctic Glacier Income Fund

February 25, 2005 12:54 ET

Arctic Glacier Announces Tax Deferral Rate of 36.3% for 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ARCTIC GLACIER INCOME FUND

TSX SYMBOL: AG.UN

FEBRUARY 25, 2005 - 12:54 ET

Arctic Glacier Announces Tax Deferral Rate of 36.3%
for 2004

WINNIPEG, MANITOBA--(CCNMatthews - Feb. 25, 2005) - The Arctic Glacier
Income Fund (TSX:AG) today announced the return of capital allocation
for distributions in 2004 for Canadian residents is 36.3 per cent. The
return of capital portion provides holders of trust units with
significant tax deferral opportunities.

The Fund distributed $1.07 per unit in 2004, comprised of $0.3890 tax
deferred return of capital and $0.6814 other taxable income. The
detailed tax allocation of each distribution in 2004 is provided in the
attached table and is also available on the Fund's website at
www.arcticglacierinc.com.

Distributions paid to U.S. residents during 2004 are comprised of (in
Canadian dollars) $0.5140 qualifying dividend, $0.1574 US source income,
$0.1077 Canadian source income and $0.2913 non-taxable return of
capital. The detailed tax allocation of each distribution in 2004 to
U.S. residents is available on the Fund's website.

Holders of units who are non-residents of Canada will be subject to
withholding taxes in respect of any distributions by the Fund.

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 25 production
plants and 41 distribution facilities across Canada and the central and
northeastern United States servicing more than 50,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock
Exchange under the trading symbol AG. There are 23.4 million trust units
outstanding.



2004 Cash Distribution Summary for Income Tax Purposes

The following chart summarizes the distributions of the Fund per trust
unit and tax treatment to residents of Canada for the 2004 taxation year:

Other Return
Record Date Payment Divi- Taxable of
Date idend Income Capital Total
---------------------------------------------------------------------
January 30, February 13,
2004 2004 - $0.0578 $0.0314 $0.0892
February 27, March 15
2004 2004, - $0.0540 $0.0352 $0.0892
March 31, April 15,
2004 2004 - $0.0578 $0.0314 $0.0892
April 30, May 14,
2004 2004 - $0.0559 $0.0333 $0.0892
May 31, June 15,
2004 2004 - $0.0577 $0.0315 $0.0892
June 30, July 15,
2004 2004 - $0.0559 $0.0333 $0.0892
July 30, August 13,
2004 2004 - $0.0577 $0.0315 $0.0892
August 31, September 15,
2004 2004 - $0.0577 $0.0315 $0.0892
September 30, October 15,
2004 2004 - $0.0558 $0.0334 $0.0892
October 29, November 15,
2004 2004 - $0.0577 $0.0315 $0.0892
November 30, December 15,
2004 2004 - $0.0558 $0.0334 $0.0892
December 31, January 14,
2004 2005 - $0.0576 $0.0316 $0.0892
---------------------------------------------------------------------
2004 Total $0.0000 $0.6814 $0.3890 $1.0704
---------------------------------------------------------------------
0.0% 63.7% 36.3% 100.0%
---------------------------------------------------------------------


For tax purposes, cash distributions paid on January 14, 2005 are
considered to be income in 2004.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Arctic Glacier Inc.
    Robert Nagy
    President & CEO
    Toll free: 1-888-573-9237
    or
    Arctic Glacier Inc.
    Keith McMahon
    Executive VP & Chief Financial Officer
    Toll free: 1-888-573-9237
    www.arcticglacierinc.com