Pembina Announces September 2010 Distribution

CALGARY, Sept. 10 /CNW/ - Pembina Pipeline Income Fund ("Pembina" or the "Fund") announced today a September 2010 cash distribution to Unitholders of 13 cents per trust unit, to be paid October 15, 2010 to Unitholders of record on September 25, 2010.

Based on internal projections and certain assumptions, Pembina expects to maintain its current distribution level of 13 cents per trust unit per month ($1.56 per trust unit per year) through 2013. The Fund has obtained the necessary approvals to convert to a dividend-paying corporate entity on October 1, 2010 and expects to distribute $1.56 per share annually to investors as a monthly dividend once the new structure is in place.

The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the common shares and convertible debentures of Pembina. As a result, Pembina expects its common shares and convertible debentures will commence trading on the TSX on or about Tuesday, October 5, 2010 under the symbols "PPL" and "PPL.DB.B", respectively. Pembina Pipeline Income Fund's trust units and convertible debentures are expected to be de-listed by the TSX that same day.

Under the conversion, investors will receive one common share in Pembina Pipeline Corporation for each trust unit they hold. Holders of debentures will receive common shares in Pembina Pipeline Corporation when they choose to convert their debentures. This is expected to be considered a tax-deferred exchange; however investors should consult with financial advisors regarding potential tax consequences of the exchange.

A component of the Fund's cash distributions is taxable in the hands of the Unitholder, with the remaining portion a return of capital, unless held in a tax-deferred account. Until conversion, Pembina estimates 75 percent of 2010 distributions will be taxable and 25 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 2009 tax information for Canadian and U.S. investors is available at www.pembina.com under the heading "Investors" and at www.cds.ca.

Pembina Pipeline Corporation, a wholly-owned subsidiary of the Fund, transports crude oil and natural gas liquids produced in Western Canada, owns and operates oil sands pipelines and has a growing presence in midstream and gas services. Pembina's trust units (PIF.UN) and convertible debentures (PIF.DB.B) are traded on the TSX.

Forward-Looking Information and Statements

This news release contains certain forward-looking information and statements that are based on the Fund's and Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In this news release, such forward-looking information and statements can be identified by terminology such as "to be", "believes", "expects", "plans", "estimates", "will" and similar expressions.

In particular, this document contains forward-looking statements and information, including certain financial outlook, pertaining to the planned completion date of the conversion, trading of Pembina's common shares and convertible debentures and delisting of the Fund's securities, the anticipated benefits from conversion to a corporation, resulting access to capital markets, improved liquidity and future growth and expansion, taxation of unitholders, and the ability of Pembina to maintain its current level of cash distributions to its equity holders both prior to and after conversion through 2013 (in the form of dividends after conversion). These forward-looking statements and information are being made by Pembina based on certain assumptions that Pembina has made in respect thereof as at the date of this document, including: that favourable growth parameters continue to exist in respect of current and future growth projects (including the ability to finance such projects on favourable terms); future distributions, payout ratios, taxation of distributions and, after conversion, dividends; there will be no changes to current tax laws governing the taxation of SIFT entities, the treatment of cash distributions from such entities, and the conversion of SIFT entities into corporations; and that Pembina's businesses will continue to achieve sustainable financial results.

These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: non-performance of agreements in accordance with their terms; the impact of competitive entities and pricing; reliance on key industry partners, alliances and agreements; the strength and operations of the oil and natural gas production industry and related commodity prices; the continuation or completion of third-party projects; regulatory environment and inability to obtain required regulatory approvals; tax laws and treatment; fluctuations in operating results; the ability of Pembina to raise sufficient capital to complete future projects and satisfy future commitments; construction delays; labour and material shortages; and certain other risks detailed from time to time in the Fund's public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in the Fund's management's discussion and analysis for the year ended December 31, 2009, which can be found at www.sedar.com.

Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements. The Fund does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. Management of the Fund approved the financial outlook contained herein as of the date of this news release. Readers should be aware the information contained in the financial outlook contained herein may not be appropriate for other purposes.

All dollar values are in Canadian dollars.

For further information: Glenys Hermanutz, Vice President, Corporate Affairs, Pembina Pipeline Corporation, [phone], 1-888-428-3222, e-mail: [email protected]