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Press release from Marketwire

Enbridge Income Fund Announces Results of Contract Extensions on Alliance Pipeline

Alliance Pipeline positioned to enhance value through new multi-service approach

Friday, December 03, 2010

Enbridge Income Fund Announces Results of Contract Extensions on Alliance Pipeline08:05 EST Friday, December 03, 2010CALGARY, ALBERTA--(Marketwire - Dec. 3, 2010) - Enbridge Income Fund (TSX:ENF.UN) ("the Fund") today confirmed that shippers representing 8% of contracted capacity on the Alliance Pipeline system have elected to extend their existing contracts to at least December 1, 2016. These shippers have also retained the option of continuing to extend their capacity commitments on an annual basis. Remaining shippers, representing the balance of originally contracted capacity, have elected not to extend their commitments beyond 2015 under the terms of the original contracts. The pipeline will remain fully contracted under existing firm service tolls through December 1, 2015."While Alliance will remain fully contracted under existing firm service tolls for another five years, we believe that its proximity to stable and growing supplies of liquids rich gas, and its unique ability to efficiently deliver high BTU content gas streams will help ensure that the pipeline will continue to be fully utilized for many years beyond the primary term of these contracts, and we expect Alliance to continue to deliver solid earnings and cash flow to the Fund," said John Whelen, President of the Fund's Administrator, Enbridge Management Services Inc."The recently completed shipper capacity election process will clear the way for Alliance to remarket capacity that has not been extended beyond 2015. Although Alliance's cost and tariff structure is expected to continue to provide cost-effective transportation to shippers seeking point-to-point service to Chicago, Alliance anticipates being able to further enhance its competitive position and capacity for revenue generation with the introduction of new market-based services."The Fund holds a 50% interest in the Canadian portion of the Alliance Pipeline system which provides a high pressure, liquids rich natural gas transmission service from supply areas in northwestern Alberta and northeastern British Columbia and other areas long the system to delivery points near Chicago, Illinois. When the Alliance Pipeline began operations in late 2000, the original shippers on the system signed 15-year firm service transportation contracts with the option to extend their current contract term beyond 2015 with notification to Alliance by December 1, 2010.Over the next five years, Alliance is expected to transition from a single-service, single toll export pipeline to a new multi-service business model, providing customers choice from a suite of transportation services. Among other things, Alliance will seek to implement short-haul delivery and receipt services to complement its existing "bullet line" delivery service to Chicago and to provide greater shipper market liquidity though hub services such as the Natural Gas Exchange (NGX) and the Alliance Chicago Exchange (ACE) project.The Canadian portion of the Alliance Pipeline is one of the Fund's three solid energy infrastructure businesses which also include crude oil and liquids transportation in Saskatchewan and Manitoba, and interests in 71 megawatts of green power generation from wind power projects and waste-heat recovery facilities.About Enbridge Income FundEnbridge Income Fund is an unincorporated, open-ended trust created to provide a stable and sustainable flow of distributable cash to unitholders. The Fund is a premier income fund in Canada with a low-risk profile focused on energy infrastructure assets. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., and a 50% interest in NRGreen Power Limited Partnership, which operates electrical generation facilities using waste heat, and holds interests in three wind power projects in Western Canada. Effective December 15, 2010, units of Enbridge Income Fund held by the public will be exchanged, on a one for one basis, for shares of Enbridge Income Fund Holdings Inc., a taxable Canadian corporation. Information about Enbridge Income Fund and its planned restructuring is available on the Fund's web site at www.enbridgeincomefund.com.FOR FURTHER INFORMATION PLEASE CONTACT: Jennifer VareyEnbridge Income FundMedia(403) 508-6563jennifer.varey@enbridge.comORPatrick MurrayEnbridge Income FundInvestment Community(403) 508-3136patrick.murray@enbridge.comwww.enbridgeincomefund.com