These acquisitions are key additions to Keyera's gathering and processing, NGL infrastructure and marketing growth strategies. Brazeau River is located in the foothills region of west central Alberta, an area currently experiencing significant producer activity levels and a region that Keyera believes will see considerable activity in the future. At Nevis, Keyera intends to integrate the NGL fractionation and logistics infrastructure with its existing NGL facilities and marketing business to enhance operational flexibility and expand product supply.

The total cost of the acquisitions is approximately $129 million before closing adjustments. The transaction is subject to normal closing conditions, has an effective date of October 1, 2008 and is expected to close on December 1, 2008. Keyera has committed credit facilities in place sufficient to fund the transaction, including a commitment for an additional $75 million short-term credit facility if required at closing.

"I am extremely pleased to add these very synergistic assets to Keyera's business and we expect the transaction will be immediately accretive to per-unit cash flow. These acquisitions fit very well with our long-term growth strategy of increasing our ownership interest at our existing facilities and expanding our operations where we see opportunities for synergies with existing Keyera infrastructure," said Jim Bertram, President and CEO of Keyera. "The Brazeau River gas plant is a key facility for us in an area where we have a number of new growth initiatives underway. Higher ownership allows us to accelerate incremental business opportunities and the new gathering systems significantly expand our capture area. In Nevis, we are acquiring a sour gas processing facility with NGL fractionation and rail and truck facilities, which we intend to integrate with Keyera's other NGL infrastructure assets."

Highlights of the Transaction

Keyera believes the highlights of the transactions include:

- Strong fit with Keyera's existing gathering and processing and NGL infrastructure business strategies

- Immediately accretive to distributable cash flow per unit on a capital structure neutral basis

- Well understood and easily integrated assets

- Establishes majority ownership of 91.6 percent in the Brazeau River gas plant, one of Keyera's key gas processing facilities

- Enhances Keyera's sour gas processing capability. Nevis's NGL fractionation and logistics facilities expand Keyera's NGL infrastructure capture area and provide an additional source of supply to Keyera's marketing business

- Increases Keyera's net sour gas processing capacity by 237 million cubic feet per day, or approximately 17 percent, to over 1.6 billion cubic feet per day, making Keyera the largest sour gas processor in Alberta

- Synergistic with current and future organic growth opportunities in all three of Keyera's business lines -- www.cnxmarketlink.com