Press Release

NORTHERN BORDER PARTNERS, L.P. REPORTS THIRD QUARTER NET INCOME OF $12.9 MILLION AND DECLARES QUARTERLY DISTRIBUTION

FOR IMMEDIATE RELEASE: Friday, October 18, 1996

HOUSTON -- Northern Border Partners, L.P. today reported net income of $12.9 million, or $0.48 per unit, for the third quarter of 1996. The amounts compare to net income of $12.8 million, or $0.48 per unit, for the same period in 1995. Comparative operating revenues were $52.9 million for the most recent quarter and $51.9 million a year ago.

For the first nine months of 1996, Northern Border Partners, L.P. reported net income of $38.5 million, compared to $38.7 million for the first nine months of 1995. Net income per unit for the nine months ended September 30, 1996 amounted to $1.44 per unit compared to $1.45 per unit for the first nine months of 1995. Revenues for the first nine months of 1996 were $158.7 million, compared to $156.7 million for the comparable period in 1995.

Third quarter 1996 throughput volumes averaged 1,684 million cubic feet per day (MMcf/d) versus 1,698 MMcf/d for the third quarter of 1995. Volumes for the first nine months of 1996 averaged 1,747 MMcf/d compared to 1,724 MMcf/d for the comparable period a year ago.

The Partnership Policy Committee of Northern Border Partners, L.P. today declared the Partnership’s regular quarterly cash distribution of $0.55 per unit for the third quarter of 1996. The indicated annual rate is $2.20 per unit. The distribution is payable November 14, 1996, to unitholders of record as of October 31, 1996, out of the available cash flow from operations of the Partnership from July 1, 1996 to September 30, 1996.

"The third quarter of 1996 was very productive for Northern Border Partners," said Larry L. DeRoin, Chairman of the Northern Border Partners, L.P. Partnership Policy Committee. "In August, the Federal Energy Regulatory Commission (FERC) issued a favorable preliminary determination on Northern Border Pipeline Company’s proposed Chicago Project, which is on track for a November 1998 in-service date," DeRoin said. The preliminary determination, an important milestone in the approval process, is a decision on all non-environmental issues of the project including the approval of rolled-in rate treatment.

"In addition, Northern Border Pipeline Company has achieved significant progress in reaching a settlement accord with the majority of customers in its pending rate case. FERC approval of the settlement agreement was requested October 15, 1996," DeRoin stated.

Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns a 969-mile U.S. interstate pipeline system that transports natural gas produced in Western Canada and the Williston Basin to major gas consuming markets in the U.S.

Northern Border Partners, L.P. is listed on the New York Stock Exchange under the symbol "NBP".

Northern Border Partners, L.P.
Financial Highlights
(Unaudited: in millions except net income per unit)
	Third Quarter		Year to Date
	1996	1995	1996	1995
Operating Revenue	$ 52.9	$ 51.9	$158.7	$156.7
Net Income	$ 12.9	$ 12.8	$ 38.5	$ 38.7
Per Unit Net Income	$ .48	$ .48	$ 1.44	$ 1.45
Average Units Outstanding	26.2	26.2	26.2	26.2

Consolidated Statement of Income
(Unaudited: in millions)
	Third Quarter		Year to Date
	1996	1995	1996	1995
Operating Revenue	$ 52.9	$ 51.9	$158.7	$156.7
Operating Expenses
Operations and maintenance	7.2	6.5	21.0	19.9
Depreciation and amortization	13.5	11.9	40.7	35.5
Taxes other than income	6.2	6.2	18.8	18.7
	26.9	24.6	80.5	74.1
Operating Income	26.0	27.3	78.2	82.6
Interest expense	( 8.3)	( 8.8)	( 25.1)	( 26.6)
Other income (expense)	0.7	( 0.2)	2.5	( 0.6)
Minority interest	( 5.5)	( 5.5)	( 17.1)	( 16.7)
Net Income	$ 12.9	$ 12.8	$ 38.5	$ 38.7

Operating Highlights
(Unaudited)
	Third Quarter		Year to Date
	1996	1995	1996	1995
Gas Delivered (MMcf)	152,528	153,498	470,608	461,303
Average throughput (MMcf/d)	1,684	1,698	1,747	1,724

For additional information please contact:

A. H. Davis

(713) 853-6941