Inter Pipeline Fund
TSX : IPL.DB
TSX : IPL.UN

Inter Pipeline Fund

October 04, 2005 09:43 ET

Inter Pipeline Fund Completes Acquisition of Simon Storage and Increases Monthly Cash Distributions

CALGARY, ALBERTA--(CCNMatthews - Oct. 4, 2005) - Inter Pipeline Fund ("Inter Pipeline") (TSX:IPL.UN) announced today that it has completed the acquisition of Simon Storage Ltd. ("Simon"), the largest independent petroleum and petrochemical storage business in the United Kingdom. The transaction, involved the purchase of all outstanding share capital in Simon Storage Holdings Ltd., the privately held parent of Simon, for a cash consideration of 120 million Great Britain pounds, or approximately $250 million Canadian, before closing adjustments.

Inter Pipeline further announces that it has received approval from the Board of Directors for an increase to its monthly cash distributions from $0.0625 to $0.065 per unit, or $0.78 per unit on an annualized basis, as a result of this acquisition. The new distribution level represents an increase of $0.03 per unit relative to Inter Pipeline's current annualized distribution rate of $0.75 per unit. Unitholders of record on December 31, 2005 will be eligible for the distribution increase, payable on or about January 16, 2006.

Inter Pipeline Fund

Inter Pipeline is a major Canadian petroleum transportation and natural gas liquids extraction business based in Calgary, Alberta, Canada. 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.

Simon Storage Ltd.

Simon is a recognized leader in the bulk liquid storage sector, handling over 250 different products for approximately 300 customers. They primarily handle, blend and store petroleum, petrochemical and alternative fuel products. Simon owns and operates seven deep water storage terminals located on the coasts of the United Kingdom and the Republic of Ireland with a combined liquid storage capacity of over six million barrels.

Other complementary services include facilities management, bulk liquid trucking and engineering services to several of the world's largest integrated energy companies.

Eligible Investor

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.

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.

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

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