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

Inter Pipeline Fund

July 14, 2005 14:56 ET

Inter Pipeline Provides Further Update on Empress Facilities

CALGARY, ALBERTA--(CCNMatthews - July 14, 2005) - Inter Pipeline Fund ("Inter Pipeline") (TSX:IPL.UN) (TSX:IPL.DB) advises that the Empress II facility is now fully operational. Empress II began producing natural gas liquids ("NGL") on July 2nd at approximately 33% of normal rates. Volumes have gradually increased over the past week as repair work has been completed. NGL production at the Empress II facility is now above pre-storm levels. As previously announced the Empress V extraction facility resumed full operations on June 28, 2005.

It is management's view that the weather related disruptions at the Empress II and Empress V facilities have had a negligible impact on cash flow and no impact to monthly cash distributions.

Inter Pipeline owns 100% of the Empress II and 50% of the Empress V facility. Both extraction facilities are operated by BP Canada Energy Resources Company.

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.

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.

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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