MGG Increases Cash Distribution for Eleventh Consecutive Quarter

TULSA, Okla., Oct. 23 /PRNewswire-FirstCall/ -- The board of directors for
the general partner of Magellan Midstream Holdings, L.P. (NYSE: MGG) has
increased the partnership's quarterly cash distribution to 35.4 cents per unit
for the period July 1 through Sept. 30, 2008, representing its eleventh
consecutive quarterly distribution increase. The partnership had indicated in
a news release on Oct. 9 that the board of directors was expected to approve
the increase.
The third-quarter distribution represents a 22% increase over the
third-quarter 2007 distribution of 29 cents and a 5% increase over the
second-quarter 2008 distribution of 33.75 cents per unit.
The new distribution, which equates to $1.416 per unit on an annualized
basis, will be paid Nov. 14, 2008 to unitholders of record at the close of
business on Nov. 7.
MGG owns the general partner interest and incentive distribution rights of
Magellan Midstream Partners, L.P. (NYSE: MMP). The partnership currently has
no separate operating activities apart from those conducted by MMP, and its
cash flow is derived from cash distributions received from MMP. Related to
third quarter 2008, MGG will receive distributions of $22.9 million from its
ownership interest in MMP, almost all of which is available for distribution
to MGG unitholders.
The partnership plans to announce third-quarter earnings before the market
opens on Mon., Nov. 3. An analyst conference call is scheduled at 1:30 p.m.
Eastern the same day. To participate, dial (888) 778-9058 and provide code
2504671. Investors also may listen to the call via the partnership's website
at http://www.mgglp.com/webcasts.asp.
This announcement is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b), with 100% of the partnership's distributions
to foreign investors attributable to income that is effectively connected with
a United States trade or business. Accordingly, MGG's distributions to foreign
investors are subject to federal income tax withholding at a rate of 35%.
About Magellan Midstream Holdings, L.P.
Magellan Midstream Holdings, L.P. (NYSE: MGG) is a publicly traded
partnership formed to own the general partner interest and 100% of the
incentive distribution rights in Magellan Midstream Partners, L.P.
(NYSE: MMP), which primarily transports, stores and distributes refined
petroleum products. More information is available at http://www.mgglp.com.
Portions of this document may constitute forward-looking statements as
defined by federal law. Although management believes any such statements are
based on reasonable assumptions, there is no assurance that actual outcomes
will not be materially different. Additional information about issues that
could lead to material changes in performance is contained in the
partnership's filings with the Securities and Exchange Commission.
Contact: Paula Farrell
(918) 574-7650
paula.farrell@magellanlp.com

SOURCE Magellan Midstream Holdings, L.P.

Paula Farrell of Magellan Midstream Holdings, L.P., +1-918-574-7650,
paula.farrell@magellanlp.com