News Releases

Pembina Increases 2007 Distribution Rate For The Second Time

    CALGARY, Aug. 1 /CNW/ - Pembina Pipeline Income Fund ("Pembina"
TSX:PIF.UN) is pleased to announce an increase in its monthly distribution
rate to 12 cents per Trust Unit, or $1.44 per Trust Unit on an annualized
basis, to initially be paid September 14, 2007 to Unitholders of record on
August 31, 2007. This represents a 9 percent increase from the previous
monthly rate of 11 cents per Trust Unit, or $1.32 per Trust Unit annually.
This is the second time in 2007 that Pembina has increased its monthly
distribution rate and, together with the 10 percent increase, which initially
took effect with the January 2007 distribution, represents a cumulative
increase of 24 percent over the average 2006 distribution rate. Since its
initial public offering in October 1997, Pembina has established a reputation
for stable operations and a record of consistent and, more recently, rising
    Robert Michaleski, Pembina's President and Chief Executive Officer,
stated, "I am proud that Pembina, by announcing this second distribution rate
increase in 2007, is once again demonstrating its ability to successfully
execute its business plan and deliver on its commitment to Unitholders.
Pembina continues to achieve solid results in all areas of our business and we
expect that the new rate will be sustainable for the foreseeable future.
Further anticipated growth opportunities on our conventional pipelines and
expansion of our oil sands business, together with the continuing development
of our midstream services, lend confidence in our ability to meet our
distribution objective going forward."
    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

    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

    The information contained in this press release 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",
"anticipates", "targets", "believes", "strives", "estimates", "continue",
"designed", "poised", "objective", "maintain", "schedule" and similar
expressions. In particular, this press release contains forward-looking
statements with respect to: future stability and sustainability of cash
distributions to Unitholders; ongoing expansions of and additions to our asset
base; future growth and growth potential in Pembina's conventional pipelines,
oil sands infrastructure and midstream operations; potential revenue
enhancement; maintenance of operating margins; continued high levels of oil
and gas activity and increased oil and gas production in proximity to our
pipelines and other assets; additional throughput potential on additional
connections and other initiatives on our conventional system; expected project
start-up and construction dates; future distributions, payout ratios and
taxation of distributions; the future development of the condensate projects;
the expansion of midstream services; and the future tax treatment of the Fund
and income trusts. These statements 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 alliances and agreements, the strength and operations of the
oil and natural gas production industry and related commodity prices,
regulatory environment, tax laws and treatment, fluctuations in operating
results, the ability of Pembina to raise sufficient capital to complete future
projects and satisfy future commitments, construction delays and 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
reflected in these forward-looking statements and information are reasonable
as of the date hereof but no assurance can be given that these expectations
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. 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: