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News Releases

Pembina Announces December 2007 Distribution and 2008 Capital Expenditure Budget

    CALGARY, Dec. 14 /CNW/ - Pembina Pipeline Income Fund announces the
December 2007 cash distribution to Unitholders of 12 cents per Trust Unit, to
be paid January 15, 2008 to Unitholders of record on December 31, 2007.
    In 2007, continuing growth in all three of its business segments enabled
Pembina to increase its monthly distribution rate twice, representing a
cumulative increase of 24 percent over the average 2006 distribution rate. The
breadth of tangible and prospective growth opportunities currently under
development lend confidence in our continuing ability to meet our objectives.
    In support of this ongoing growth, Pembina's Board of Directors recently
approved a $223 million capital budget for 2008. Combined with an estimated
$295 million in capital expenditures in 2007, this represents an investment of
$500 million in Pembina's business.
    Pembina expects to direct $50 million in capital to its conventional
pipeline business during 2008, on new connections and the completion of
product segregation facilities on the Drayton Valley and Peace pipeline
systems. Pembina will spend roughly $130 million in the first half of 2008 to
complete the Horizon Pipeline project, which is on schedule to be placed into
service and commence generating returns in the third quarter of 2008.
Approximately $40 million will be spent to further expand and diversify the
services offered by Pembina's midstream business including the development of
full service truck terminals and centralized hub services.
    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 85 percent of the 2007 distributions
will be taxable and 15 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 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", "proposed", "anticipates", "targets", "believes",
"estimates", "continue", " designed", "objective", "potential" 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. 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, Pembina Pipeline Corporation, (403) 231-7500, 1-888-428-3222, e-mail:
investor-relations@pembina.com