The Hiland companies, Hiland Partners, LP to announce Quarterly Distribution Declarations

The Hiland companies, Hiland Partners, LP and Hiland Holdings GP, LP highlight the following quarterly distribution declarations.

Hiland Partners, LP

The Board of Directors of Hiland Partners GP, LLC, the managing general partner of Hiland Partners, LP, today announced an increase in its cash distribution for the second quarter of 2008. The declared quarterly distributions on the Partnership’s common and subordinated units will increase to $0.8625 per unit (an annualized rate of $3.45 per unit) from $0.8275 per unit (an annualized rate of $3.31 per unit). This represents a 4.2% increase over the prior quarter and a 17.7% increase over the distribution for the same quarter of the prior year. The distribution will be payable on August 14, 2008 to Unitholders of record on August 4, 2008.

Hiland Partners, LP

The Board of Directors of Hiland Partners GP, LLC, the managing general partner of Hiland Partners, LP, today announced an increase in its cash distribution for the second quarter of 2008. The declared quarterly distributions on the Partnership’s common and subordinated units will increase to $0.8625 per unit (an annualized rate of $3.45 per unit) from $0.8275 per unit (an annualized rate of $3.31 per unit). This represents a 4.2% increase over the prior quarter and a 17.7% increase over the distribution for the same quarter of the prior year. The distribution will be payable on August 14, 2008 to Unitholders of record on August 4, 2008.

Hiland Partners, LP is a publicly traded midstream energy partnership engaged in gathering, compressing, dehydrating, treating, processing and marketing natural gas, and fractionating, or separating, natural gas liquids, or NGLs. The Partnership also provides air compression and water injection services to an oil and gas exploration and production company for use in its oil and gas secondary recovery operations. The Partnership’s operations are primarily located in the Mid-Continent and Rocky Mountain regions of the United States. Hiland Partners, LP’s midstream assets consist of fourteen natural gas gathering systems with approximately 2,030 miles of gathering pipelines, five natural gas processing plants, seven natural gas treating facilities and three NGL fractionation facilities. The Partnership’s compression assets consist of two air compression facilities and a water injection plant.

Hiland Holdings GP, LP owns the two percent general partner interest, 2,321,471 common units and 3,060,000 subordinated units in Hiland Partners, LP, and the incentive distribution rights of Hiland Partners, LP.

Source: Hiland Partners, LP; Hiland Holdings GP, LP