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News Releases

Pembina Announces September 2008 Distribution

    CALGARY, Sept. 12 /CNW/ - Pembina Pipeline Income Fund ("Pembina" or the
"Fund") announces the September 2008 cash distribution to Unitholders of 13
cents per Trust Unit, to be paid October 15, 2008 to Unitholders of record on
September 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.
    Pembina recently increased its monthly distribution rate to 13 cents per
Trust Unit, or $1.56 per Trust Unit on an annualized basis from the previous
monthly rate of 12 cents per Trust Unit, or $1.44 per Trust Unit annually.
Solid operating performance across all three of Pembina's business segments,
together with incremental net operating income contribution from the recently
completed Horizon Pipeline, will generate what Pembina believes to be a
significant and sustainable increase in cash flow that is expected to support
the higher distribution rate.
    Further, in early August Pembina announced that its wholly owned
subsidiary Pembina Pipeline Corporation is proceeding with the development of
two pipeline systems, the Nipisi and Mitsue Pipelines, at an estimated capital
cost of $400 million. Based on Pembina's internal projections, the two
pipelines are expected to contribute a long-term, contracted net operating
income stream of approximately $45 million per annum once operations commence
in mid-2011.
    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. This document
also contains forward-looking statements and information with respect to the
Horizon Pipeline, which are based upon assumptions that the Horizon Pipeline
will be in service in the fourth quarter of 2008, that counterparties fulfill
their contractual obligations in a timely manner and, that there are no
unforeseen events preventing performance of contracts by Pembina. This
document also contains forward-looking statements and information with respect
to the Nipisi and Mitsue Pipelines net operating income, which is based upon
the assumptions that the Nipisi and Mitsue pipeline systems will be in service
on time and on budget, that counterparties fulfill their contract obligations
in a timely manner, that there are no unforeseen events preventing performance
of contracts by Pembina, and that there are no unforeseen material costs
relating to the pipeline systems. 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.
The purpose of the financial outlook contained herein is to give the reader an
indication of the value to Pembina of the Nipisi and Mitsue Pipelines. 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