Inter Pipeline Fund
TSX : IPL.UN

Inter Pipeline Fund

March 16, 2007 12:19 ET

Inter Pipeline Fund Announces 2006 Tax Information

CALGARY, ALBERTA--(CCNMatthews - March 16, 2007) - Inter Pipeline Fund (TSX:IPL.UN) (Inter Pipeline) announced today the following tax information in relation to cash distributions declared to unitholders in 2006.

Tax Information

During the year, Inter Pipeline declared cash distributions totalling $0.8000 per unit. The 2006 taxable portion amounts to $0.6800 per unit or 85.0000% of total cash distributions, while the remaining $0.1200 per unit or 15.0000% 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 cash distributions on their 2006 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 Federal and Provincial income taxes in Canada.



Allocation of
Payment Cash Income for Tax Return of
Record Date Date Distribution Purposes Capital
----------------------------------------------------------------------------
Jan 31, 2006 Feb 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Feb 28, 2006 Mar 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Mar 31, 2006 Apr 13, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Apr 28, 2006 May 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
May 31, 2006 Jun 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Jun 30, 2006 July 14, 2006 $ 0.0650 $ 0.0553 $ 0.0097
July 31, 2006 Aug 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Aug 31, 2006 Sep 15, 2006 $ 0.0650 $ 0.0553 $ 0.0097
Sep 29, 2006 Oct 16, 2006 $ 0.0700 $ 0.0595 $ 0.0105
Oct 31, 2006 Nov 15, 2006 $ 0.0700 $ 0.0595 $ 0.0105
Nov 30, 2006 Dec 15, 2006 $ 0.0700 $ 0.0595 $ 0.0105
Dec 29, 2006 Jan 15, 2007 $ 0.0700 $ 0.0595 $ 0.0105
----------------------------------------------------------------------------
Total 2006(1) $ 0.8000 $ 0.6800 $ 0.1200

(1) Amounts may not total due to rounding


Although the December 29, 2006 distribution of $0.0700 per unit was paid on January 15, 2007, the taxable portion of this distribution is included in the unitholders' taxable income for 2006.

Additional 2006 and historical tax information is available on our website at www.interpipelinefund.com under Unitholder Information/Tax Information/2006 Tax Information.

Tax Forms

If unitholders have registered their Class A units directly with Inter Pipeline's registrar and transfer agent, Computershare Trust Company of Canada (Computershare), then Computershare will be responsible for completing and mailing the T5013 or Releve 15 tax form. If unitholders hold their Class A units beneficially through a brokerage firm, then the brokerage firm will be responsible for completing and mailing the T5013 or Releve 15 form. Both the T5013 and Releve 15 forms are required to be mailed to unitholders on or before March 31, 2007.

Inter Pipeline is not responsible for completing or mailing individual T5013 or Releve 15 tax forms. 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 petroleum transportation, bulk liquid storage and natural gas liquids extraction business based in Calgary, Alberta, Canada. Structured as a publicly traded limited partnership, Inter Pipeline owns and operates energy infrastructure assets in western Canada, the United Kingdom, Germany and Ireland. Additional information about Inter Pipeline can be found at www.interpipelinefund.com

Inter Pipeline is a member of the S&P/TSX Composite Index. Class A Units trade on the Toronto Stock Exchange under the symbol IPL.UN.

Eligible 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: 1-888-453-7330 (toll free in North America)
Email: service@computershare.com


Disclaimer

Certain information contained herein may constitute forward-looking statements that involve risks and uncertainties. Readers are cautioned not to place undue reliance on forward-looking statements. Such information, although considered reasonable by the General Partner of 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 not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as "may", "will", "should", "anticipate", "expects" and similar expressions. Such risks and uncertainties include, but are not limited to, risks associated with operations, such as loss of markets, regulatory matters, environmental risks, industry competition and the ability to access sufficient capital from internal and external sources. You can find a discussion of those risks and uncertainties in Inter Pipeline's securities filings at www.sedar.com. Except to the extent required by applicable securities laws and regulations, Inter Pipeline assumes no obligation to update or revise forward-looking statements made herein or otherwise, whether as a result of new information, future events, or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary note.

All dollar values are expressed in Canadian dollars unless otherwise noted.

Contact Information