Keyera Facilities Income Fund Announces Special Distribution

CALGARY, Nov. 3 /CNW/ - Keyera Facilities Income Fund (TSX:KEY.UN; KEY.DB; KEY.DB.A) ("Keyera" or "the Fund") is pleased to announce that a special distribution totalling $0.45 per unit will be paid to unitholders in the form of cash and units of the Fund concurrent with the payment of the November monthly distribution of $0.15 per unit.

"This special distribution is intended to reduce or eliminate any material cash income tax payable by Keyera in 2009, while at the same time providing a significant benefit to our unitholders" said Jim Bertram, President and CEO of Keyera. "Our situation this year is unique. The additional $59 million of taxable income from the settlement of financial hedging contracts earlier in the year, together with the strong performance from the business, have created a situation where Keyera expects to have taxable income at year end. Given our low payout ratio and strong balance sheet, we are able to make this payment without jeopardizing Keyera's financial strength or flexibility."

The special distribution will be payable in a combination of cash (50% or $0.225 per unit) and units of the Fund (the remaining 50% or $0.225 per unit). Both the regular and special distributions will be paid on December 15, 2009 to unitholders of record at the close of business on November 23, 2009. The ex-distribution date is November 19, 2009.

In accordance with the Fund's Declaration of Trust, the number of units payable to unitholders as part of the special distribution will be determined using the closing market price on the November 23 record date. The special distribution will not be eligible to participate in Keyera's Premium Distribution™ and Distribution Reinvestment Plan.

For tax purposes, Keyera currently expects that its 2009 distributions will be taxable for Canadian non-exempt unitholders. This outlook is subject to change. Unitholders will be required to include the entire amount of the special distribution in income. For non-resident unitholders, the entire special distribution will be subject to Canadian withholding tax.

Comments on the tax implications of the special distribution are provided as general information only and are not intended to be legal or tax advice to any particular unitholder. All unitholders should consult legal, business and tax advisors about the tax implications of the special distribution.

Disclaimer

This document contains forward-looking statements based on management's current expectations and assumptions relating to Keyera's business and the environment in which it operates. As these forward-looking statements depend upon future events, actual outcomes may differ materially depending on factors such as: the distribution policy of the Fund; the operation of the Premium Distribution™ and Distribution Reinvestment Plan (including a decision by Keyera to pro-rate or suspend the Premium Distribution™); future operating results of Keyera's business segments and the components of those results; Keyera's ability to execute its strategic initiatives; commodity supply/demand balances and prices; activities of producers, competitors and others; overall economic conditions; the legislative, regulatory and tax environment (including any further announcements with respect to the tax treatment of income trusts); and other known or unknown factors. There can be no assurance that the results or developments anticipated by Keyera will be realized or that they will have the expected consequences for or effects on Keyera.

For additional information on these and other factors, see Keyera's public filings on www.sedar.com. Unless otherwise required by applicable laws, Keyera does not intend to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

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