2003 U.S. Income Tax Information

The following information is being provided to assist individual U.S. unitholders of ARC in reporting distributions received from ARC on their IRS Form 1040 – U.S. Individual Income Tax Return for the calendar year 2003.

Trust Units Held Within a Qualified Retirement Plan

No amounts are required to be reported on an IRS Form 1040 – U.S. Individual Income Tax Return where ARC trust units are held within a qualified retirement plan.

Trust Units Held Outside of a Qualified Retirement Plan

The table below summarizes the distributions paid by ARC in 2003. A portion of the distributions  could be eligible for the new low  rate of tax on certain "qualified dividends". ARC believes that its dividends are "Qualified Dividends" and therefore should be reported on Line 9b of the U.S. federal income tax return unless the fact situation of the U.S. individual unitholders determines otherwise. Commentary on page 23 of the IRS 2003 1040 Instruction booklet with respect  to "Qualified Dividends" provides examples of individual situations where the dividends would not be "Qualified Dividends". Where, due to individual situations, the dividends are not "Qualified Dividends", the  amount should be reported  on Schedule B –  Part  II  – Ordinary Dividends, Line 9a of your U.S. federal income tax return.

The table below also summarizes the portion of the distributions that are a return of capital.  The return of capital is generally non-taxable. This amount is non-taxable if it is a return of your cost (or other basis) in the trust units. You must reduce your cost (or other basis) by this amount for calculating capital gain or loss when you sell your units. If this amount exceeds your cost (or other basis), report the excess as a capital gain.

U.S. Unitholders are encouraged to utilize the Qualified Dividends and Capital Gain Tax Worksheet to determine the amount of tax that may be otherwise applicable.

The amount of foreign tax paid (Canadian withholding tax) should be reported on Form 1116 "Foreign Tax Credit (Individual, Estate, or Trust)". Information regarding the amount of Canadian tax withheld in 2003 should be determined from your own records and is not available from ARC.

Investors should report their dividend income and capital gain (if any), and make adjustments to their tax basis in the Trust’s units, in accordance with this press release and subject to advice from their tax advisors. The Trust is not required to file Form 1099 and is providing this information in lieu of that requirement. Some unitholders will receive 1099s from their brokers and others may not.  Information on the 1099s issued by the brokers may not accurately reflect the information in this press release for a variety of reasons. Investors should consult their brokers and tax advisors to ensure that the information presented here is accurately reflected on their tax returns.

Record
Date

Payment
Date

Dist.
Paid CDN$

Exchange
Rate.

Dist.
Paid US$

Taxable
Qualified
Dividend
US$

Return of
Capital
US$

Dec 31, 2002