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News Releases

Pembina Announces November 2008 Distribution

    CALGARY, Nov. 4 /CNW/ - Pembina Pipeline Income Fund ("Pembina" or the
"Fund") announces the November 2008 cash distribution to Unitholders of 13
cents per Trust Unit, to be paid December 15, 2008 to Unitholders of record on
November 30, 2008.
    Pembina's established reputation of delivering stable and growing
distributions to Unitholders is supported by premium energy infrastructure
assets, diversified services, strategic expansions and additions, and strong
stakeholder relationships.
    In its recently released Third Quarter 2008 Interim Report, the Fund
announced its intention to reinstate the Premium Distribution, Distribution
Reinvestment and Optional Unit Purchase Plan (the "DRIP"). The DRIP, a
convenient and economical way for Unitholders to maximize their investment in
Pembina, became effective with the October 2008 distribution of the Fund
declared last month. Eligible Unitholders may elect to participate in the DRIP
for the November monthly distribution of $0.13 per Trust Unit (payable on
December 15, 2008) by contacting their broker, investment dealer or financial
institution holding their Trust Units and having them enroll on their behalf
on or before November 30, 2008. Unitholders who are residents of the United
States are not permitted to participate in the DRIP.
    DRIP proceeds will be directed to fund Pembina's ongoing capital program,
including the estimated $400 million Nipisi and Mitsue Pipelines currently
under development. Further details and enrollment forms for the DRIP are
available on Pembina's website located at www.pembina.com under the heading
'Investors'.
    In June of 2007, the Canadian federal government enacted legislation that
will result in the taxation of certain flow-through entities, including
Pembina, commencing on January 1, 2011. During the third quarter, Pembina
undertook a detailed review of its options post-2011 and, at present, Pembina
views conversion to corporate form as the most likely outcome. Preliminary
analysis of Pembina's distribution policy indicates that, based on current
conditions, Pembina's internal projections and certain assumptions (see
"Forward-Looking Information and Statements" below), the current distribution
rate is sustainable through 2010. Pembina also expects to maintain this rate
post-2010 and through to at least 2013, when Pembina expects that the payment
of cash taxes will commence, based on the aforementioned conditions,
projections and assumptions.
    A component of the Fund's cash distributions are taxable in the hands of
the Unitholder, with the remaining portion a return of capital, unless held in
a tax-deferred account. Pembina estimates 80 percent of the 2008 distributions
will be taxable and 20 percent will be a return of capital for Canadian tax
purposes. Pembina's distributions are subject to current domestic tax laws
which require a withholding tax from distribution income to nonresidents of
Canada. Pembina's 2007 tax information is available at www.pembina.com and at
www.cds.com.
    Pembina Pipeline Income Fund (TSX: PIF.UN, PIF.DB.B) is among the leading
issuers in the Canadian energy infrastructure trust sector. Pembina's
extensive network of conventional liquids feeder pipelines, and growing
presence in the oil sands and midstream sectors, provide an integral service
to the western Canadian energy industry. This balanced portfolio of premium,
long-life energy infrastructure assets supports the stability and
sustainability of the Fund. Information on the Pembina Pipeline Income Fund is
available on the Company's website at www.pembina.com.

    Forward-Looking Information and Statements

    This document contains certain forward-looking statements and information
that are based on the Fund's current expectations, estimates, projections and
assumptions in light of its experience and its perception of historical
trends. In some cases, forward-looking statements and information can be
identified by terminology such as "may", "will", "should", "expects",
"projects", "plans", "proposes", "anticipates", "targets", "believes",
"strives", "intends", "views", "indicates", "estimates", "continues",
"maintains", "endeavors", "designs", "objective", "potential", "schedule", and
similar expressions.
    In particular, this document contains forward-looking statements,
including certain financial outlook, regarding (i) the possible conversion of
Pembina to a corporate form in the latter half of 2010 and the ability of
Pembina to maintain its current level of cash distributions to its equity
holders both prior to and for the foreseeable future after conversion (in the
form of dividends after conversion); (ii) the future net operating income of
Pembina in relation to the Horizon Pipeline; and (iii) the proposed
construction of the Mitsue and Nipisi Pipelines and related facilities. These
forward-looking statements are being made by Pembina based on certain
assumptions that Pembina has made in respect thereof as at the date of this
document. These assumptions include, in respect of the possible corporate
conversion of Pembina and future cash distributions or dividends to equity
holders, that Pembina's internal cash flow and tax projections are correct;
that Pembina can obtain all necessary approvals in respect of the corporate
conversion; that favourable growth parameters continue to exist in respect of
current and future projects of Pembina (including in respect of the ability to
finance such projects on favourable terms); that there will be no changes to
current tax laws governing the taxation of SIFT entities and the treatment of
distributions from such entities; that the draft legislation related to the
conversion of SIFT entities into corporations, as introduced on July 14, 2008,
will be enacted in the form proposed; and the continued sustainable results of
all three of Pembina's business segments. In respect of the forward-looking
statements made in relation to the Horizon and Mitsue and Nipisi Pipelines and
related facilities, Pembina has assumed that the in-service date for the
Horizon Pipeline will be November 1, 2008 and that the in-service date for the
Mitsue and Nipisi Pipelines will be in mid-2011; that future tolls in respect
of such pipelines will be consistent with internal projections; that
counterparties will comply with contracts in a timely manner; that there are
no unforeseen events preventing the performance of contracts by Pembina; that
Pembina is able to obtain financing on favourable terms in respect of the
costs associated with the Mitsue and Nipisi Pipelines and related facilities;
that there are no unforeseen construction costs related to the Mitsue and
Nipisi Pipelines and related facilities; and that there are no unforeseen
material costs relating to the pipeline systems which are not recoverable from
shippers.
    Further, this document contains forward-looking statements and
information with respect to: ongoing utilization and future expansion,
development, growth and performance of the Fund's business and asset base;
future demand for oil sands transportation services; future levels of oil and
natural gas development in proximity to Pembina's pipelines and other assets
(which could be affected by, among other things, possible changes to
applicable royalty and tax regimes); the amount of future liabilities related
to environmental incidents; the availability of coverage under Pembina's
insurance policies (including in respect of Pembina's business interruption
insurance policy); future acquisitions, growth and growth potential in
Pembina's conventional pipelines, oil sands & heavy oil infrastructure and
midstream & marketing operations, potential revenue and cash flow enhancement;
future cash flows; maintenance of operating margins; additional throughput
potential on additional connections and other initiatives on the conventional
system; expected project start-up and construction dates; future
distributions, payout ratios and taxation of distributions; future financing
capability and sources; negative credit rating adjustments; and the expansion
of midstream services.
    These forward-looking statements and information are not guarantees of
future performance and are subject to a number of known and unknown risks and
uncertainties, including, but not limited to: the impact of competitive
entities and pricing; reliance on key industry partners, alliances and
agreements; the strength and operations of the oil and natural gas production
industry and related commodity prices; the continuation or completion of third
party projects; regulatory environment and inability to obtain required
regulatory approvals (including in respect of the Mitsue and Nipisi pipelines
and related facilities); tax laws and treatment; fluctuations in operating
results; lower than anticipated results of operations and accretion from the
Fund's business initiatives; reduced amounts of cash available for
distributions to Unitholders; the ability of Pembina to raise sufficient
capital (or to raise capital on favourable terms) to complete future projects
and satisfy future commitments, including the construction of the Nipisi and
Mitsue Pipelines and related facilities; construction costs of the Mitsue and
Nipisi Pipelines and related facilities, construction delays; labour and
material shortages; and certain other risks detailed from time to time in the
Fund's public disclosure documents. The Fund believes the expectations and
material factors and assumptions reflected in these forward-looking statements
and information are reasonable as of the date hereof, but no assurance can be
given that these expectations, factors and assumptions will prove to be
correct. Undue reliance should not be placed on these forward-looking
statements and information as both known and unknown risks and uncertainties,
including those business risks stated above, may cause actual performance and
financial results in future periods to differ materially from any projections
of future performance or results expressed or implied by such forward-looking
statements and information.
    Accordingly, readers are cautioned that events or circumstances could
cause results to differ materially from those predicted, forecasted or
projected. Such forward-looking statements and information are expressly
qualified by the above statements. The Fund does not undertake any obligation
to publicly update or revise any forward-looking statements or information
contained herein, except as required by applicable laws. Management of the
Fund approved the financial outlook contained herein as of the date of this
press release. The purpose of the financial outlook contained herein is to
give the reader an indication of the potential effects to Unitholders of a
possible conversion of Pembina to corporate form. Readers should be aware that
the information contained in the financial outlook contained herein may not be
appropriate for other purposes.

    %SEDAR: 00008906E

For further information: Glenys Hermanutz, Vice President, Corporate
Affairs, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail:
investor-relations@pembina.com