Arctic Glacier Income Fund
TSX : AG.UN

Arctic Glacier Income Fund

February 25, 2008 13:36 ET

Arctic Glacier Announces Tax Deferral Rate of 58% for 2007

WINNIPEG, MANITOBA--(Marketwire - Feb. 25, 2008) - Arctic Glacier Income Fund (TSX:AG.UN) today announced the return of capital allocation for distributions in 2007 for Canadian residents is 58.0 percent. The return of capital portion provides holders of trust units with significant tax deferral opportunities.

The Fund distributed $1.10040 per unit in 2007, comprised of $0.63812 tax deferred return of capital and $0.46228 other taxable income. The detailed tax allocation of each distribution in 2007 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 2007 are comprised of (in Canadian dollars) $0.33649 US source income, $0.15724 Canadian source income and $0.60667 tax deferred return of capital. The detailed tax allocation of each distribution in 2007 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 37 production plants and 50 distribution facilities across Canada and the northeast, central and western United States servicing more than 70,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 38.9 million trust units outstanding.

2007 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 2007 taxation year:



Other
Divi- Taxable Return of
Record Date Payment Date dend Income Capital Total
--------------------------------------------------------------------------
January 31, 2007 February 15, 2007 - $ 0.04526 $0.04644 $ 0.09170
February 28, 2007 March 15, 2007 - $ 0.03519 $0.05651 $ 0.09170
March 30, 2007 April 13, 2007 - $ 0.03895 $0.05275 $ 0.09170
April 30, 2007 May 15, 2007 - $ 0.03768 $0.05402 $ 0.09170
May 31, 2007 June 15, 2007 - $ 0.03889 $0.05281 $ 0.09170
June 29, 2007 July 13, 2007 - $ 0.03754 $0.05416 $ 0.09170
July 31, 2007 August 15, 2007 - $ 0.03857 $0.05313 $ 0.09170
August 31, 2007 September 14, 2007 - $ 0.03855 $0.05315 $ 0.09170
September 28,
2007 October 15, 2007 - $ 0.03730 $0.05440 $ 0.09170
October 31, 2007 November 15, 2007 - $ 0.03854 $0.05316 $ 0.09170
November 30,
2007 December 14, 2007 - $ 0.03729 $0.05441 $ 0.09170
December 31,
2007 January 15, 2008 - $ 0.03852 $0.05318 $ 0.09170
--------------------------------------------------------------------------
2007 Total - $ 0.46228 $0.63812 $ 1.10040
--------------------------------------------------------------------------
Allocation 0.0% 42.0% 58.0% 100.0%


For tax purposes, cash distributions paid on January 15, 2008 are considered to be income in 2007.

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

Contact Information

  • Arctic Glacier Income Fund
    Keith McMahon
    President & CEO
    Toll free investor relations phone: 1-888-573-9237
    or
    Arctic Glacier Income Fund
    Doug Bailey
    Chief Financial Officer
    Toll free investor relations phone: 1-888-573-9237
    Website: www.arcticglacierinc.com