TEPPCO Expands Marine Services Fleet with Acquisition of Vessels from TransMontaigne

TEPPCO Partners, L.P. (NYSE:TPP) today announced it has purchased marine assets, including 19 boats and 28 barges, from TransMontaigne Product Services, Inc. for all cash consideration of $50 million. The acquisition complements the partnership’s existing fleet of vessels that currently transports petroleum-based products along the nation’s inland waterway system and in the Gulf of Mexico. The newly acquired marine assets are based primarily in Miami, Florida, with additional assets located in Mobile, Alabama, and Houston, Texas. The acquired vessels primarily deliver bunker fuels for cruise liners and cargo ships as well as fuel oil for electric generation plants.

“With the addition of these well-maintained assets complementing our existing fleet, TEPPCO has significantly strengthened its position as a major provider of marine services in the Gulf Coast region,” said Jerry E. Thompson, president and chief executive officer of TEPPCO’s general partner. “The acquisition of these vessels is immediately accretive to distributable cash flow per unit, and is supported by long-term contracts of up to five years with well-capitalized counterparties at attractive terms. This purchase is an example of our stated objective of leveraging the partnership’s diverse geographic footprint to pursue targeted growth opportunities.”

Market fundamentals in the areas currently served by the acquired assets offer TEPPCO the potential to expand relationships with existing customers, and provide additional transportation services to other third parties. The partnership also expects the transaction to provide synergies and opportunities to optimize the existing fleet acquired in February 2008, resulting in the formation of the Marine Services segment. With the TransMontaigne purchase, TEPPCO increases its fleet to 70 boats and 153 barges.

TEPPCO Partners, L.P., is a publicly traded energy logistics partnership with operations that span much of the continental United States. TEPPCO owns and operates an extensive network of assets that facilitate the movement, marketing, gathering and storage of various commodities and energy-related products. The partnership’s midstream network is comprised of approximately 12,500 miles of pipelines that gather and transport refined petroleum products, crude oil, natural gas, liquefied petroleum gases (LPGs) and natural gas liquids, including one of the largest common carrier pipelines for refined petroleum products and LPGs in the United States. TEPPCO’s storage assets include approximately 27 million barrels of capacity for refined petroleum products and LPGs and about 14 million barrels of capacity for crude oil. TEPPCO also owns a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems, and in the Gulf of Mexico. For more information, visit TEPPCO’s website. Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., is owned by Enterprise GP Holdings (NYSE:EPE).

This news release includes forward-looking statements. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, insufficient cash from operations, market conditions, governmental regulations and factors discussed in TEPPCO Partners, L.P.'s filings with the Securities and Exchange Commission. If any of these risks or uncertainties materializes, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. The partnership disclaims any intention or obligation to update publicly or reverse such statements, whether as a result of new information, future events or otherwise.