Pembina Announces September 2008 Distribution

Pembina Pipeline Income Fund announces the September 2008 cash distribution to Unitholders of 13 cents per Trust Unit, to be paid October 15, 2008 to Unitholders of record on September 30, 2008.

Pembina’s established reputation of delivering stable and growing distributions to Unitholders is supported by premium energy infrastructure assets, diversified services, strategic expansions and additions, and strong stakeholder relationships.

Pembina recently increased its monthly distribution rate to 13 cents per Trust Unit, or $1.56 per Trust Unit on an annualized basis from the previous monthly rate of 12 cents per Trust Unit, or $1.44 per Trust Unit annually. Solid operating performance across all three of Pembina’s business segments, together with incremental net operating income contribution from the recently completed Horizon Pipeline, will generate what Pembina believes to be a significant and sustainable increase in cash flow that is expected to support the higher distribution rate.

Further, in early August Pembina announced that its wholly owned subsidiary Pembina Pipeline Corporation is proceeding with the development of two pipeline systems, the Nipisi and Mitsue Pipelines, at an estimated capital cost of $400 million. Based on Pembina’s internal projections, the two pipelines are expected to contribute a long-term, contracted net operating income stream of approximately $45 million per annum once operations commence in mid-2011.

A component of the Fund’s cash distributions are taxable in the hands of the Unitholder, with the remaining portion a return of capital, unless held in a tax-deferred account. Pembina estimates 80 percent of the 2008 distributions will be taxable and 20 percent will be a return of capital for Canadian tax purposes. Pembina’s distributions are subject to current domestic tax laws which require a withholding tax from distribution income to nonresidents of Canada. Pembina’s 2007 tax information is available at www.pembina.com and at www.cds.com.

Pembina Pipeline Income Fund is among the leading issuers in the Canadian energy infrastructure trust sector. Pembina’s extensive network of conventional liquids feeder pipelines, and growing presence in the oil sands and midstream sectors, provide an integral service to the western Canadian energy industry. This balanced portfolio of premium, long-life energy infrastructure assets supports the stability and sustainability of the Fund. Information on the Pembina Pipeline Income Fund is available on the Company’s website at www.pembina.com.