Inter Pipeline Fund to Provide Diluent Transportation for

Inter Pipeline Fund to Provide Diluent Transportation for Suncor
Energy 
CALGARY, ALBERTA -- (Marketwire) -- 12/10/12 -- Inter Pipeline Fund
("Inter Pipeline") (TSX:IPL.UN) is pleased to announce it has entered
into a binding agreement to transport diluent to Suncor Energy Inc.'s
oil sands operations. Under the terms of this 5-year ship or pay
agreement, Inter Pipeline will provide Suncor with 10,000 barrels per
day (b/d) of committed capacity on its Polaris pipeline system.  
Diluent will be transported from receipt points in the Edmonton area
to Inter Pipeline's Sunrise metering station located northeast of
Fort McMurray utilizing the 12-inch diameter Polaris mainline that
entered commercial service in August of this year. Inter Pipeline
will construct a new $8 million metering facility adjacent to the
Sunrise delivery site to handle the Suncor volumes. Diluent
deliveries will then be transferred from the Polaris pipeline to a
local distribution pipeline owned by Suncor. 
Construction will commence in late 2012 and the new facilities are
expected to enter service by May 2013. This accretive transportation
agreement will generate approximately $10 million per year in EBITDA
that will remain constant over the life of the contract. All
operating costs will be recovered on a flow through basis. 
"We are pleased to add Canada's largest energy company to our list of
high quality shippers on the Polaris pipeline system," stated David
Fesyk, President and CEO of Inter Pipeline. "This agreement further
establishes Polaris as the leading diluent distribution system to
Alberta's oil sands industry." 
Inter Pipeline Fund  
Inter Pipeline is a major petroleum transportation, natural gas
liquids extraction, and bulk liquid storage 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, Denmark, 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 
Pursuant to Inter Pipeline's limited partnership agreement dated
Octo
ber 9, 1997, as amended, all unitholders are required to be
residents of Canada. A copy of the limited partnership agreement can
be found at www.interpipelinefund.com by selecting "Corporate
Governance". If a unitholder is a non-resident of Canada
("Non-Eligible Unitholder"), he will not be considered to be a member
of the partnership effective the date the Class A Units were
acquired. Inter Pipeline requires all Non-Eligible Unitholders to
dispose of their Class A Units in accordance with the limited
partnership agreement.  
In most cases, a unitholder with an address outside of Canada will be
a Non-Eligible Unitholder.  
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,
timing and completion cost estimates for the Suncor connection
project, and forward EBITDA estimates. 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, 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. 
Non-GAAP Financial Measures 
Certain financial measures referred to in this news release, namely,
"EBITDA" and "cash flow" are not measures recognized by GAAP. These
non-GAAP financial measures do not have standardized meanings
prescribed by GAAP and therefore may not be comparable to similar
measures presented by other entities. Investors are cautioned that
these non-GAAP financial measures should not be construed as
alternatives to other measures of financial performance calculated in
accordance with GAAP. 
Contacts:
Inter Pipeline Fund- Investor Relations:
Jeremy Roberge
Vice President, Capital Markets
403-290-6015 or 1-866-716-7473
jroberge@interpipelinefund.com 
Inter Pipeline Fund- Media Relations:
Tony Mate
Director, Corporate and Investor Communications
403-290-6166
tmate@interpipelinefund.com
www.interpipelinefund.com