Enterprise's Board Approves Distribution Increase Upon Completion of GulfTerra Merger.

HOUSTON -- Enterprise Products Partners L.P. (NYSE:EPD) announced that the Board of Directors of its general partner has approved an increase in Enterprise's quarterly cash distribution rate to its limited partners upon the completion of the merger with GulfTerra Energy Partners, L.P. The new rate will be at least $0.395 per common unit, or $1.58 per common unit on an annual basis, effective with the third quarter cash distribution which is payable in November 2004. This would be a 6% increase from the current quarterly rate of $0.3725 per common unit, or an annual rate of $1.49. The increase in the cash distribution rate is contingent upon the closing of the merger with GulfTerra and will be effective when the third quarter distribution is declared by the Board of Directors of Enterprise's general partner.

"We are in the final stages of completing our merger with GulfTerra and expect to complete the transaction in September," said O.S. Andras, President and Chief Executive Officer of Enterprise. "In preparation, the Board of Directors of our general partner approved an increase in the cash distribution rate to our limited partners, as provided in the merger agreement. We believe this will be the first increase for our partners supported by what we estimate to be in excess of $100 million of annual synergies resulting from the merger. These synergies are attributable to lower cash distributions paid to the general partner under Enterprise's incentive distribution right structure which is capped at 25% compared to GulfTerra's existing 50% incentive distribution rights, general and administrative expense synergies and lower interest costs. We also believe there will be significant revenue and margin growth opportunities for the combined partnership. Upon completion of the merger, we are looking forward to our respective commercial groups working together for the first time to identify and implement these," stated Andras.

"Yesterday, we announced an extension of the expiration time for our four cash tender offers to purchase GulfTerra's outstanding senior subordinated and senior notes to September 10. Our tender is contingent upon our completion of the merger and therefore, the expiration time of the tender period will be subsequent to the merger date. This extension was made based on our current expectations of the earliest probable closing date for the merger."

Enterprise Products Partners L.P. is the second-largest publicly traded midstream energy partnership, with an enterprise value of over $7.0 billion. Enterprise is a leading North American provider of midstream energy services to producers and consumers of natural gas and NGLs. The Company's services include natural gas transportation, processing and storage and NGL fractionation (or separation), transportation, storage and import/export terminaling.

This press release contains various forward-looking statements and information that is based on Enterprise's beliefs and those of its general partner, as well as assumptions made by and information currently available to Enterprise. When used in this press release, words such as "anticipate," "project," "expect," "plan," "goal," "forecast," "intend," "could," "believe," "may," and similar expressions and statements regarding the plans and objectives of Enterprise for future operations, are intended to identify forward-looking statements.

Although Enterprise and its general partner believe that such expectations reflected in such forward-looking statements are reasonable, neither Enterprise nor its general partner can give assurances that such expectations will prove to be correct. Such statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, Enterprise's actual results may vary materially from those Enterprise anticipated, estimated, projected or expected. Among the key risk factors that may have a direct bearing on Enterprise's results of operations and financial condition are:

--fluctuations in oil, natural gas and NGL prices and production due to weather and other natural and economic forces;

--a reduction in demand for the Company's products by the petrochemical, refining or heating industries;

--a decline in the volumes of NGLs delivered by the Company's facilities;

--the failure of the Company's credit risk management efforts to adequately protect it against customer non-payment;

--the failure to successfully integrate new acquisitions; and

--terrorist attacks aimed at the Company's facilities.

The Company has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.