AltaGas Income Trust Closes Processing Plant Acquisitions

September 25, 2006

CALGARY, ALBERTA--(CCNMatthews - Sept. 25, 2006) - AltaGas Income Trust (AltaGas or the Trust) (TSX:ALA.UN) today announced it has closed the previously announced acquisition of the new 10 Mmcf/d Clear Hills sour gas processing facility and an associated 16 kilometre sour gas gathering line in Northwest Alberta for a total of approximately $15 million. The pipeline will connect a number of existing producer wells east of the plant, in what is expected to be an active drilling area.

AltaGas will own 100 percent of the Clear Hills Gas Plant, which will consist of gathering pipelines, inlet separation, compression, refrigeration, amine sweetening and acid gas flaring facilities. AltaGas will also operate the plant, which began commercial operation last week.

AltaGas also acquired an increased interest in the Pouce Coupe processing plant and related assets for approximately $1 million. This brings AltaGas' interest in the plant and related facilities to 75 percent, effective July 1, 2006.

David Cornhill, Chairman, President and CEO of AltaGas said, "The Clear Hills Gas Plant is an excellent addition to our expansion in Northwest Alberta, and increases our overall sour gas processing capability."

AltaGas Income Trust is one of Canada's largest and fastest growing integrated energy infrastructure and services organizations. The Trust creates value by growing and optimizing assets and services across the energy value chain to serve North America's energy demand. Since 1994, AltaGas Income Trust has expanded its business to include natural gas gathering, processing and transmission, extraction of ethane and natural gas liquids, power generation, marketing of natural gas and natural gas liquids, as well as retail energy services to commercial, industrial and institutional end-users across Canada.

AltaGas Income Trust's units are listed on the Toronto Stock Exchange under the symbol ALA.UN. The Trust is included in the S&P/TSX Composite Index, the S&P/TSX Capped Income Trust Index and the S&P/TSX Capped Energy Trust Index.

This news release contains forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Trust or an affiliate of the Trust, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Trust's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Trust's public disclosure documents. Many factors could cause the Trust's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release as intended, planned, anticipated, believed, sought, proposed, estimated or expected, and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Trust does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

AltaGas Income Trust
Dennis Dawson
(403) 691-7534


Investment Community:
AltaGas Income Trust
Stephanie Labowka-Poulin
(403) 691-7136


AltaGas Income Trust
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