Press Release

NORTHERN BORDER PARTNERS, L.P. REPORTS SECOND QUARTER NET INCOME PER UNIT AND DECLARES SECOND QUARTER DISTRIBUTION

OMAHA, Neb. -- Northern Border Partners, L.P. (NYSE:NBP) today reported second quarter 2000 net income per unit of $0.60, or $18.0 million compared to $0.69 per unit in second quarter 1999 or $20.6 million. Cash flows from operating activities increased from $48.8 million for the second quarter of 1999 to $57.4 million for the second quarter of 2000.

Delivered volumes on the Northern Border Pipeline increased during second quarter 2000 to 210,719 million cubic feet (MMcf) from 209,084 MMcf for the second quarter of 1999.

Although both revenues and operating income increased for the second quarter of 2000 compared to the same period in 1999, these increases were offset by increased interest expense resulting from higher interest rates on Partnership debt and increased debt outstanding related to the Partnership's investment in Bighorn Gas Gathering, L.L.C.

"I am especially pleased that in June Northern Border Pipeline Company reached an agreement in principle with the staff of the Federal Energy Regulatory Commission and nearly all our customers to settle the pending rate case. Although the terms of the settlement are confidential until approved by FERC, we believe that the settlement embodies benefits to both the company and its customers in a balanced package and is an important step in the company's regulatory evolution," said Larry DeRoin, chairman and chief executive officer of Northern Border Partners, L.P.

"Additionally, our investment in Bighorn Gas Gathering continues its development. Recently Bighorn and J. M. Huber Corporation reached an agreement for Bighorn to provide gathering services for Huber's production in the Powder River Basin. Bighorn will extend its gathering system by 56 miles at a cost of approximately $17.8 million. We believe that this agreement and the resulting pipeline construction will provide additional revenue opportunities for Bighorn in the region," said DeRoin.

The Partnership Policy Committee of Northern Border Partners, L.P. today declared the Partnership's quarterly cash distribution of $0.65 per unit for the second quarter of 2000. The indicated annual rate is $2.60 per unit. The second quarter distribution is payable Aug. 14, 2000 to unitholders of record as of July 31, 2000.

Northern Border Partners, L.P. owns a 70 percent general partner interest in Northern Border Pipeline Company, which owns and operates a 1,214-mile interstate pipeline system that transports approximately 23 percent of all Canadian natural gas imports into the United States. In addition, the Partnership owns the Black Mesa Pipeline, a 273-mile, coal-water slurry pipeline from Kayenta, Arizona to the Mohave Power Station in Laughlin, Nevada and an equity investment in Bighorn Gas Gathering, L.L.C., a gathering system located in the Powder River Basin in Campbell and Sheridan Counties, Wyo. Northern Border Partners, L.P. information may be found at http://www.northernborderpartners.com/

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Although Northern Border Partners, L.P. believes that its expectations are based on reasonable assumptions, it can give no assurance that such expectations will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include timely approval of the rate case settlement by the FERC; competition for gathering services on the Bighorn system; and competitive conditions in the marketplace.

Click here to download this press release in Microsoft Word format.

Please see attached tables for additional financial information.

For additional information please contact:

Media Contact:

Beth Jensen

(402) 398-7806

Investor Relations Contact:

Ellen Konsdorf

(402) 398-7840