News Release



Inter Pipeline Fund Announces 2008 Tax Information


Feb 27, 2009 - 09:30 ET

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2009) - Inter Pipeline Fund (Inter Pipeline) (TSX:IPL.UN) announced today the following tax information in relation to cash distributions declared to unitholders in 2008.

Tax Information

During the year, Inter Pipeline declared cash distributions totalling $0.8400 per unit. The 2008 taxable portion amounts to $0.8400 per unit or 100% of total cash distributions. There was no return of capital in 2008.

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 2008 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.

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 for the distributions re-invested.

  

Allocation of
Record Payment Cash Income for Tax Return of
Date Date Distribution Purposes Capital
----------------------------------------------------------------------------
Jan 31, 2008 Feb 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Feb 29, 2008 Mar 14, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Mar 31, 2008 Apr 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Apr 30, 2008 May 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
May 30, 2008 Jun 16, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Jun 30, 2008 July 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
July 31, 2008 Aug 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Aug 29, 2008 Sep 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Sep 30, 2008 Oct 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Oct 31, 2008 Nov 14, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Nov 28, 2008 Dec 15, 2008 $ 0.0700 $ 0.0700 $ 0.0000
Dec 31, 2008 Jan 15, 2009 $ 0.0700 $ 0.0700 $ 0.0000
----------------------------------------------------------------------------
Total 2008 $ 0.8400 $ 0.8400 $ 0.0000

Although the December 31, 2008 distribution of $0.0700 per unit was paid on January 15, 2009, the taxable portion of this distribution is included in the unitholders' taxable income for 2008.

Additional 2008 and historical tax information is available on our website at www.interpipelinefund.com by selecting "Unitholder Information" then "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, 2009.

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.

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 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. Forward-looking statements in this news release include, but are not limited to, statements regarding Inter Pipeline's belief that it is well positioned to maintain its current level of cash distributions to unitholders through 2011 and beyond, and Inter Pipeline's belief that it is in a strong position to operate and grow organically during this period of global uncertainty. 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, potential delays and cost overruns of construction projects, including the Corridor pipeline system expansion project, 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. The forward-looking statements contained in this news release are made as of the date of this document, and, 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.



Inter Pipeline Fund
Investor Relations:
Jeremy Roberge
Vice President, Capital Markets
(403) 290-6015
or
Toll Free: 1-866-716-7473
Email: jroberge@interpipelinefund.com
or
Inter Pipeline Fund
Media Relations:
Tony Mate
Director, Corporate and Investor Communications
(403) 290-6166
Email: Tony.Mate@interpipelinefund.com
Website: www.interpipelinefund.com