Energy Transfer Equity Completes $160 Million Private Placement of Equity

Business Wire, March 2, 2007

DALLAS -- Energy Transfer Equity, L.P. (NYSE:ETE) today announced that it has completed a private placement of 5,006,261 of its common units to a group of institutional investors. The units were purchased at a price of $31.96 per unit based on a moving average price ending Wednesday, February 28, 2007 resulting in net proceeds to ETE of approximately $160 million that will be used to repay ETE indebtedness. Investors were granted registration rights with respect to the purchased units.

"This private equity placement shows once again the tremendous level of confidence that institutional investors have in ETE," said John W. McReynolds, President and CFO of ETE. "Moreover, this equity issuance reflects our continuing commitment to maintaining a strong balance sheet at ETE as well as the other Energy Transfer family of companies. We believe that this equity issuance and debt repayment appropriately balances our capital structure at the present time."

The addition of the 5,006,261 newly issued units brings the total number of common units outstanding (including Class B and Class C units convertible into common units) to 222,828,332.

Energy Transfer Equity, L.P. (NYSE:ETE) owns the general partner of Energy Transfer Partners, L.P. and approximately 62.5 million of ETP's limited partner units. Together, ETP and ETE have a combined enterprise value of approximately $20 billion.

Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a diversified portfolio of primarily midstream energy assets. ETP's natural gas operations include intrastate natural gas gathering and transportation pipelines, natural gas treating and processing assets located in Texas and Louisiana, and three natural gas storage facilities located in Texas. These assets include approximately 12,000 miles of intrastate pipeline in service, with an additional 600 miles of intrastate pipeline under construction, and 2,400 miles of interstate pipeline, extending from California to Texas. ETP is also one of the three largest retail marketers of propane in the U.S., serving more than one million customers across the country.

The information contained in this press release is available on our website at www.energytransfer.com.