Inter Pipeline Fund

Inter Pipeline Fund

March 08, 2005 16:06 ET

Inter Pipeline Fund- 2004 Tax Information


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTER PIPELINE FUND

TSX SYMBOL: IPL.UN
TSX SYMBOL: IPL.DB

MARCH 8, 2005 - 16:06 ET

Inter Pipeline Fund- 2004 Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Inter Pipeline Fund
("Inter Pipeline") (TSX:IPL.UN), today announced the following tax
information in relation to cash distributions declared to unitholders in
2004.

Tax Information

During 2004 operations, Inter Pipeline declared cash distributions
totaling $0.73 per unit. The 2004 taxable portion amounts to 73.5141% of
total cash distributions, while the remaining 26.4859% is considered a
tax-deferred return of capital.

Unitholders holding Class A Units within a registered retirement savings
plan (RRSP), registered retirement income fund (RRIF), deferred profit
sharing plan (DPSP), or a registered education savings plan (RESP)
should not report any income related to unit distributions on their 2004
income tax return.

Unitholders holding Class A Units outside a RRSP, RRIF, DPSP, or RESP
are taxable on their share of Inter Pipeline's income for tax purposes.
The tax-deferred portion of the distribution reduces the Unitholders'
adjusted cost base of the Class A Units. The Unitholders' adjusted cost
base is then used in calculating the gain or loss on the disposition of
the Class A units by the Unitholder.

Unitholders should be aware that their participation in the Distribution
Reinvestment Plan and the Optional Unit Purchase Plan does not relieve
them of any liability for Canadian income taxes.



Allocation
of Income
Record Payment Cash for Tax Return of
Date Date Distribution Purposes Capital
------------------------------------------------------------------------
Jan 30, 2004 Feb 13, 2004 $0.0600 $0.0441 $0.0159
Feb 27, 2004 Mar 15, 2004 $0.0600 $0.0441 $0.0159
Mar 31, 2004 Apr 15, 2004 $0.0600 $0.0441 $0.0159
Apr 30, 2004 May 14, 2004 $0.0600 $0.0441 $0.0159
May 31, 2004 Jun 15, 2004 $0.0600 $0.0441 $0.0159
Jun 30, 2004 July 15, 2004 $0.0600 $0.0441 $0.0159
July 30, 2004 Aug 13, 2004 $0.0600 $0.0441 $0.0159
Aug 31, 2004 Sep 15, 2004 $0.0600 $0.0441 $0.0159
Sep 30, 2004 Oct 15, 2004 $0.0625 $0.0459 $0.0166
Oct 29, 2004 Nov 15, 2004 $0.0625 $0.0459 $0.0166
Nov 30, 2004 Dec 15, 2004 $0.0625 $0.0459 $0.0166
Dec 31, 2004 Jan 14, 2005 $0.0625 $0.0459 $0.0166
------------------------------------------------------------------------
Total $0.7300 $0.5367 $0.1933
------------------------------------------------------------------------
------------------------------------------------------------------------


Although the December 31, 2004 distribution of $0.0625 per unit was paid
on January 14, 2005, the taxable portion of this distribution is to be
included in the Unitholder's taxable income for 2004.

Additional 2004 and historical tax information is available on our
website: www.interpipelinefund.com under Investor Relations.

Unitholders are advised to consult their own tax advisors as to their
particular income tax situation regarding tax-related matters.

Inter Pipeline Fund

Inter Pipeline is a major Canadian petroleum transportation and natural
gas liquids extraction business based in Calgary, Alberta. Inter
Pipeline operates approximately 4,900 kilometres of petroleum pipelines
and 1.3 million barrels of storage in western Canada. These systems
transport approximately 470,000 barrels per day of oil sands bitumen,
conventional crude oil and gas plant condensate.

In addition, Inter Pipeline is one of North America's largest natural
gas liquids extraction businesses with ownership in three major
extraction facilities located in southern Alberta. These facilities are
capable of processing in excess of 6 billion cubic feet of natural gas
per day.

Inter Pipeline's Class A Units and convertible debentures trade on the
Toronto Stock Exchange under the symbols IPL.UN and IPL.DB, respectively.

Permitted Investors

Only persons who are residents of Canada, or if partnerships, are
Canadian partnerships, in each case for purposes of the Income Tax Act
(Canada) are entitled to purchase and own Class A Units and debentures
of Inter Pipeline.



Inquiries related to supplemental tax forms should be referred to
Computershare, the registrar and transfer agent at:

Computershare Trust Company of Canada
100 University Avenue, 9th Floor, Toronto, ON M5J 2Y1
Attention: Tax Processing Department
Phone: 1-800-564-6253 (toll free in North America)
Fax: 1-866-249-7775 (toll free in North America)
Email: service@computershare.com


Disclaimer

Certain information set forth above may contain forward-looking
statements that involve risks and uncertainties. Such information,
although considered reasonable by Inter Pipeline at the time of
preparation, may later prove to be incorrect and actual results may
differ materially from those anticipated in the statements made. For
this purpose, any statements that are contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Inter Pipeline Fund
    Investor Relations: Jeremy Roberge
    Treasurer
    (403) 290-6015
    Email: jroberge@interpipelinefund.com
    or
    Inter Pipeline Fund
    Media Relations: Michelle Coughlin
    Director, Public and Regulatory Affairs
    (403) 290-2643
    Email: mcoughlin@interpipelinefund.com