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News Releases

Pembina Announces October 2008 Distribution

    CALGARY, Oct. 14 /CNW/ - Pembina Pipeline Income Fund ("Pembina" or the
"Fund") announces the October 2008 cash distribution to Unitholders of 13
cents per Trust Unit, to be paid November 14, 2008 to Unitholders of record on
October 31, 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 August, Pembina increased its monthly distribution rate to 13 cents
per Trust Unit, or $1.56 per Trust Unit on an annualized basis. The Fund also
announced that its wholly owned subsidiary, Pembina Pipeline Corporation, is
proceeding with the construction of two pipeline systems, the Nipisi and
Mitsue Pipelines, at an estimated capital cost of $400 million. Both of these
pipelines are fully contracted under long-term agreements. These announcements
demonstrate Pembina's continuing ability to integrate new services with
existing, strategically located assets, thereby creating accretive growth and
value for customers and Unitholders.
    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 particular, this document contains forward-looking statements and
information with respect to: 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;
future levels, stability and sustainability of cash distributions to
Unitholders; and tax laws and tax treatment of distributions. In some cases,
forward-looking statements and information can be identified by terminology
such as "may", "will", "should", "expects", "projects", "plans", "proposed",
"anticipates", "targets", "believes", "estimates", "continue", " designed",
"objective", "potential" and similar expressions. 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;
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 to complete
future projects and satisfy future commitments, including the construction of
the Nipisi and Mitsue Pipelines; 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. 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