Enbridge Income Fund Holdings Inc. Announces Second Quarter Results; Declares Monthly Dividend

CALGARY, ALBERTA--(Marketwire - Aug. 1, 2012) - Enbridge Income Fund Holdings Inc. (TSX:ENF) (ENF or the Company) announced today earnings of $14.3 million and $28.6 million, for the three and six months ended June 30, 2012, respectively, reflecting the performance of its investment in Enbridge Income Fund (the Fund).

The Company's financial performance is a direct reflection of the Fund's ability to generate cash for distribution to its unitholders. The Fund's cash available for distribution (CAFD) totaled $108.5 million for the six months ended June 30, 2012, an increase of 90% compared with the same period of 2011. The improvement in the Fund's CAFD reflected contributions from the 190-megawatt (MW) Ontario Wind Project, 99-MW Talbot Wind Project and 80-MW Sarnia Solar Project (the Renewable Assets) which were acquired in October of 2011.

"The Company's current expansion projects are progressing well," said John Whelen, President, Enbridge Income Fund Holdings, Inc. "In our crude oil transportation business, the Bakken Expansion Program is entering the construction phase in Canada and is on track for completion early in 2013. In our Green Power segment, NRGreen, an equity investee of the Fund, has also commenced construction of a new waste heat power generation facility at the Alliance Pipeline compressor station near Whitecourt, Alberta which is expected to be in service by the third quarter of next year."

Over the last year, the Fund has gone through a substantial transformation, increasing its asset base by more than 120%. Over the same period, the Company's public equity capitalization has grown by more than 90%. In June of this year, the Company was added to the S&P TSX index."

"Index inclusion is a direct reflection of the growing size and diversity of our portfolio of energy infrastructure and should serve to enhance the Company's trading liquidity and access to capital", Mr. Whelen commented. "It will help support our ongoing strategy to grow through low risk expansions and acquisitions."

On July 31, 2012, the Company's Board of Directors declared a monthly cash dividend of $0.103 per common share to be paid on September 17, 2012 to shareholders of record at the close of business on August 31, 2012.

SECOND QUARTER 2012 REVIEW

The unaudited interim financial statements and Management's Discussion and Analysis (MD&A) of both ENF and the Fund, which contain additional notes and disclosures, are available on the Company's website at www.enbridgeincomefund.com.

• The Company's earnings for the three and six months ended June 30, 2012 were $14.3 million ($0.36 per common share) and $28.6 million ($0.72 per common share), respectively, compared with $6.8 million ($0.27 per common share) and $13.7 million ($0.54 per common share) for the three and six months ended June 30, 2011. The earnings increase is attributable to increased ownership in the Fund and an increase in per unit distributions received on such investment, as well as a reduction in income tax expense. During the first six months of 2012, the Company owned 80.7% of the Fund's issued and outstanding trust units (which represented a 30.8% overall economic interest in the Fund, with the balance held by Enbridge Inc.) and received distributions of $0.121 per unit per month whereas during the six months ended June 30, 2011 the Company owned 72.6% of the Fund's trust units (27.7% economic interest) and received distributions equivalent to $0.115 per unit per month.

• The Fund's cash available for distribution (CAFD) increased 106% and 90% to $52.2 million and $108.5 million for the three and six months ended June 30, 2012, respectively, as a result of cash contributions from the Renewable Assets which were acquired in October 2011. The Renewable Assets benefited from high operational availability and strong wind and solar resource during the six months ended June 30, 2012. The Fund's liquids transportation and natural gas transmission assets continued to deliver stable and predictable cash flows in the first six months of 2012. CAFD generated by the Saskatchewan System ($38.2 million) and Alliance Canada ($36.0 million) were comparable with the first six months of the prior year.

• The Fund's earnings for the three and six months ended June 30, 2012 were $16.1 million and $33.8 million, respectively, compared with $28.7 million and $55.4 in the prior year comparative periods. Earnings for the first half of 2012 included contributions from the Renewable Assets net of an increase in financing costs as a portion of the Renewable Asset acquisition was debt financed. Prior period earnings were retrospectively adjusted to present Renewable Asset earnings from January 1, 2011 (as mandated by common control guidance); however, such retrospective adjustments were exclusive of associated financing costs. Non-cash deferred income tax expense also increased as a result of increased earnings within the Fund's subsidiary corporations.

• In May 2012, The Fund amended its existing $500 million credit facility with a syndicate of commercial banks, extending the term to May 2015. The credit facility was further amended to include a feature under which the Fund may increase the size of the facility by an additional $250 million on the same terms.

• The Company's Board of Directors declared and paid dividends of $0.103 per common share for each month of the six month period ended June 30, 2012. In addition, monthly dividends of $0.103 per common share were declared on July 16, 2012 and on July 31, 2012 for payment to shareholders on August 15, 2012 and September 17, 2012, respectively.

ABOUT ENBRIDGE INCOME FUND HOLDINGS INC.

Enbridge Income Fund Holdings Inc. is a publicly traded corporation. The Company, through its investment in Enbridge Income Fund, holds high quality, low risk energy infrastructure assets. The Fund's assets include a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in the various pipelines comprising the Saskatchewan System, and interests in more than 400 megawatts of renewable and alternative power generation capacity. Information about Enbridge Income Fund Holdings Inc. is available on the Company's website at www.enbridgeincomefund.com.

FORWARD LOOKING INFORMATION

In the interest of providing the Company's shareholders and potential investors with information about the Company and its investee, the Fund, and the Fund's subsidiaries and joint ventures, including management's assessment of the Company's and the Fund's future plans and operations, certain information provided in this News Release constitutes forward-looking statements or information (collectively, "forward-looking statements"). This information may not be appropriate for other purposes. Forward-looking statements are typically identified by words such as "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. In particular, forward-looking statements include:

• expected costs related to projects under construction;
• expected scope and in-service dates for projects under construction;
• expected timing and amount of recovery of capital costs of assets;
• expected capital expenditures;
• expected future dividends and Fund distributions;
• the Fund's expected cash available for distribution.

Although the Company believes that these forward-looking statements are reasonable based on the information available on the date such statements are made and processes are used to prepare the information, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include assumptions about: the expected supply and demand for crude oil, natural gas and natural gas liquids; prices of crude oil, natural gas and natural gas liquids; expected exchange rates; inflation; interest rates; the availability and price of labour and pipeline construction materials; operational reliability; customer project approvals; maintenance of support and regulatory approval for the Fund's projects; anticipated in-service dates and weather. Assumptions regarding the expected supply and demand of crude oil, natural gas and natural gas liquids, and the prices of these commodities, are material to and underlay all forward-looking statements. These factors are relevant to all forward-looking statements as they may impact current and future levels of demand for the Fund's services. Similarly, exchange rates, inflation and interest rates impact the economies and business environments in which the Company and the Fund operate, may impact levels of demand for the Fund's services and cost of inputs, and are therefore inherent in all forward-looking statements. Due to the interdependencies and correlation of these macroeconomic factors, the impact of any one assumption on a forward-looking statement cannot be determined with certainty, particularly with respect to expected earnings and associated per unit or per share amounts, or estimated future distributions or dividends. The most relevant assumptions associated with forward-looking statements on projects under construction, including estimated in-service dates and expected capital expenditures, include: the availability and price of labour and pipeline construction materials; the effects of inflation on labour and material costs; the effects of interest rates on borrowing costs; and the impact of weather and customer and regulatory approvals on construction schedules.

The Company's forward-looking statements, and forward looking statements with respect to the Fund, are subject to risks and uncertainties pertaining to operating performance, regulatory parameters, project approval and support, weather, economic conditions, exchange rates, interest rates and commodity prices, including but not limited to those risks and uncertainties discussed in this News Release and in the Company's and the Fund's other filings with Canadian securities regulators. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent and the Company's and the Fund's future course of action depends on management's assessment of all information available at the relevant time. Except to the extent required by law, the Company and the Fund assume no obligation to publicly update or revise any forward-looking statements made in this News Release or otherwise, whether as a result of new information, future events or otherwise. All subsequent forward-looking statements whether written or oral, attributable to the Company or the Fund or persons acting on the Company's or the Fund's behalf, are expressly qualified in their entirety by these cautionary statements.

NON-GAAP MEASURES

This News Release contains references to the Fund's cash available for distribution. Cash available for distribution represents the Fund's cash available to fund distributions on trust units and ECT preferred units as well as for debt repayments and reserves. This measure is important to shareholders as the Company's objective is to provide a predictable flow of dividends to shareholders and the Company's cash flows are derived from its investment in the Fund. Cash available for distribution is not a measure that has standardized meaning prescribed by United States Generally Accepted Accounting Principles (U.S. GAAP) and is not considered a GAAP measure. Therefore, this measure may not be comparable with similar measures presented by other issuers. The Fund's Cash Available for Distribution reconciliation for the three and six months ended June 30, 2012 and for the comparable periods in 2011 is as follows:

		Three months ended, June 30,				Six months ended, June 30,
		2012		20111		2012		20111
(millions of Canadian dollars)
Cash provided by operating activities		47.1		57.0		92.6		114.4
	Add/(deduct):
	Renewable Assets pre-Acquisition cash flows1	-		(31.7	)	-		(59.6	)
	Green Power maintenance capital expenditures	-		-		(0.2	)	-
	Green Power joint venture cash distributed/(retained)	0.8		(0.8	)	1.0		(1.0	)
	Saskatchewan System maintenance capital expenditures	(2.5	)	(1.3	)	(4.2	)	(2.0	)
	Change in operating assets and liabilities in the period	6.8		2.1		19.3		5.2
Cash available for distribution		52.2		25.3		108.5		57.0

1 Green Power earnings for all 2011 periods have been retrospectively adjusted to furnish comparative information related to the October 2011 acquisition of the Renewable Assets. The impact of the retrospective adjustments has been eliminated from CAFD as these cash flows were not available to distribute to unitholders.

SELECTED FINANCIAL AND OPERATING HIGHLIGHTS

ENBRIDGE INCOME FUND HOLDINGS INC.		Three months ended June 30,				Six months ended June 30,
		2012		2011		2012		2011
(millions of Canadian dollars, except share and per share amounts)
Earnings			14.3		6.8		28.6		13.7
	Earnings per common share, basic and diluted	$	0.36	$	0.27	$	0.72	$	0.54
Cash provided by operating activities			13.9		8.7		25.6		8.7
Dividends declared			12.3		7.2		24.6		14.5
	Dividends per common share	$	0.309	$	0.288	$	0.618	$	0.576
Number of common shares outstanding							39,741,000		25,125,000

ENBRIDGE INCOME FUND1			Three months ended June 30,						Six months ended June 30,
			2012			20113			2012			20113
(millions of Canadian dollars, except unit and per unit amounts)
Earnings
		Green Power		20.5			20.8			43.9			37.4
		Saskatchewan System		12.5			11.6			24.7			22.8
		Alliance Canada		12.4			13.6			25.3			27.1
		Corporate		(29.3	)		(17.3	)		(60.1	)		(31.9	)
				16.1			28.7			33.8			55.4
Cash available for distribution2
		Green Power		33.3			1.3			69.3			2.7
		Saskatchewan System		19.0			18.0			38.2			36.9
		Alliance Canada		17.8			17.5			36.0			37.1
		Corporate		(17.9	)		(11.5	)		(35.0	)		(19.7	)
				52.2			25.3			108.5			57.0
Cash provided by operating activities				47.1			57.0			92.6			114.4
Cash distributions declared				37.5			25.1			74.9			50.3
		Distributions per trust unit and ECT preferred unit	$	0.362		$	0.346		$	0.724		$	0.692
Number of units outstanding
		ECT preferred units								54,074,750			38,023,750
		Trust units								49,241,000			34,625,000
Operating Results
	Green Power (thousands of megawatt hours produced)
		Ontario Wind Project3		103.3			110.4			275.5			257.4
		Talbot Wind Project3		62.6			71.5			161.4			151.8
		Sarnia Solar Project3		45.3			38.3			68.3			60.1
		NRGreen		16.5			16.3			36.1			35.7
		Wind Power Joint Ventures4		19.4			20.8			46.6			45.0
Saskatchewan System (thousands of barrels per day)
		Westspur System		173.4			172.7			194.3			186.6
		Saskatchewan Gathering System		128.8			122.2			137.5			131.0
		Weyburn System		31.9			29.6			31.9			30.6
		Virden System		23.4			19.9			24.0			17.9
Alliance Canada (millions of cubic feet per day)				1,536.0			1,519.0			1,582.0			1,601.0

1 Financial Highlights for Enbridge Income Fund have been extracted from financial statements prepared in accordance with United States generally accepted accounting principles.

2 See Non-GAAP Measures.

3 Green Power earnings and power production for all 2011 periods have been retrospectively adjusted to furnish comparative information related to the October 2011 acquisition of the Renewable Assets. The impact of the retrospective adjustments has been eliminated from CAFD as these cash flows were not available to distribute to unitholders.

4 Wind Power Joint Ventures is comprised of the Fund's interest in the Sunbridge, Magrath and Chin Chute wind projects.