News Releases

Pembina Increases Distribution Rate

    CALGARY, July 30 /CNW/ - Pembina Pipeline Income Fund ("Pembina" or the
"Fund" TSX: PIF.UN) is pleased to announce an increase in its monthly
distribution rate to 13 cents per Trust Unit, or $1.56 per Trust Unit on an
annualized basis, effective with the distribution to be paid September 15,
2008 to Unitholders of record on August 31, 2008. This represents an 8.3
percent increase over 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.
    Robert Michaleski, Pembina's President and Chief Executive Officer,
stated, "Pembina's record of achievement is supported by the optimization and
build-out of our premium energy infrastructure asset base and by the
development of new service offerings to customers. The quality of Pembina's
existing asset portfolio, together with a range of tangible and prospective
opportunities presently under development across our business, lends
confidence in our continuing ability to meet our business objectives and to
deliver on our commitment to 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 that 80 percent of the distributions
declared in 2008 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
non-residents of Canada.

    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 & heavy oil infrastructure and midstream & marketing
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

    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", "proposed", "anticipates", "targets", "believes",
"estimates", "continue", "objective", "potential", "strives", "designed",
"maintain", "endeavor", "prospective" and similar expressions. 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 on
August 1, 2008, that future tolls are consistent with internal projections,
that counter parties fulfill their contractual 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 system which are not recoverable from shippers. These 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;
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; 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.

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For further information: Glenys Hermanutz, Vice President, Corporate
Affairs, (403) 231-7500, 1-888-428-3222, e-mail: