Harvest Energy Trust Announces Second Quarter 2007 Financial and Operating Results

Market Wire, August, 2007

Harvest Energy Trust (TSX: HTE.UN) (NYSE: HTE) ("Harvest") today announces the release of its second quarter 2007 financial and operating results. The unaudited financial statements, notes and MD&A are filed on SEDAR and are available on Harvest's website on the 'Financial Information - Quarterly Reports' page. All figures reported herein are Canadian dollars unless otherwise stated.

Second Quarter Highlights:

- Record Funds From Operations of $244.5 million ($1.83 per trust unit) resulting in a payout ratio of 63% and a capital adjusted payout ratio (distributions declared plus capital expenditures) of 87%;

- Balance sheet strengthened due to $230 million equity issue, $81.3 million of excess Funds From Operations applied to debt repayment and funding increased working capital at North Atlantic, plus $125.6 million in conversions of convertible debentures. Quarter end bank debt to Second Quarter annualized Funds From Operations of 1.0 times plus a $200 million increase to our existing credit facility enhanced our flexibility and provided approximately $550 million of committed undrawn bank lines at the end of the quarter;

- Very strong refinery throughput of 115,570 barrels per day ("bbl/d") and robust refining margins of US$15.64 contributed $138.4 million or 49.6% of our total Funds From Operations. The second quarter performance of our downstream business exceeded expectations and demonstrates the value of our integrated business model;

- Upstream oil and gas business generated $140.9 million or 50.4% of our total Funds From Operations with production of 60,989 barrels of oil equivalent per day ("boe/d"). Invested $48.2 million of capital and drilled 14 gross wells with a 100% success rate. We continued to high-grade our western Canadian asset base and position Harvest for long term sustainability with the disposition of a small non-core property, the acquisition of additional oil sands leases and further development work on our enhanced oil recovery pilot projects;

- Announced and then successfully acquired Grand Petroleum, a junior oil and natural gas company whose assets provide an excellent fit with our existing operations and add to our future development portfolio in southeast Saskatchewan, Sylvan Lake/Markerville and eastern Alberta; and

- Declared our third quarter monthly distributions at $0.38 per trust unit.

Financial & Operating Highlights

The table below provides a summary of our financial and operating results for the three and six month periods ended June 30, 2007 and 2006. Detailed commentary on individual items within this table is provided in Harvest's Management's Discussion and Analysis, filed on SEDAR or available on our website.

                   Three Months Ended June 30      Six Months Ended June 30
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($000s except
 where noted)         2007       2006  Change       2007       2006  Change
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Revenue, net(1)  1,137,638    233,128    388%  2,148,732    364,560    489%

Funds From
 Operations        244,461    147,010     66%    458,402    247,981     85%
 Per trust unit,
  basic             $ 1.83     $ 1.45     26%     $ 3.51  $    2.70     30%
 Per trust unit,
  diluted           $ 1.62     $ 1.43     13%     $ 3.13  $    2.66     18%

Net Income(3)        6,248     60,682    (90%)    76,098     26,745    185%
 Per trust unit,
  basic             $ 0.05     $ 0.60    (92%)    $ 0.58  $    0.29    100%
 Per trust unit,
  diluted           $ 0.05     $ 0.60    (92%)    $ 0.58  $    0.29    100%

Distributions
 declared          154,057    115,889     33%    299,327    210,701     42%
Distributions
 declared, per
 trust unit         $ 1.14     $ 1.14      -%     $ 2.28  $    2.25      1%
Payout ratio(2)         63%        79%   (16%)        65%        85%   (20%)

Bank debt                                      1,047,965    227,544    361%
Senior debt                                      258,387    279,050     (7%)
Convertible
 Debentures                                      655,396    240,246    173%
 Total long-term
  financial
  liabilities                                  1,961,748    746,840    163%

Total assets                                   5,613,333  3,455,918     62%

PETROLEUM AND NATURAL GAS OPERATIONS
 Daily Production
  Light to medium
   oil (bbl/d)      27,586     28,951     (5%)    27,311     26,497      3%
  Heavy oil
   (bbl/d)          14,719     13,037     13%     15,164     14,045      8%
  Natural gas
   liquids (bbl/d)   2,338      2,016     16%      2,417      1,865     30%
  Natural gas
   (mcf/d)          98,078     96,848      1%     99,671     85,158     17%
  Total daily
   sales volumes
   (boe/d)          60,989     60,145      1%     61,504     56,600      9%

Cash capital
 expenditures       48,221     54,230    (11%)   196,708    157,469     25%

REFINING AND MARKETING OPERATIONS

Average daily
 throughput
 (bbl/d)           115,570          -    n/a     114,646          -    n/a
Aggregate
 throughput
 (mbbl)             10,517          -    n/a      20,751          -    n/a

Average Refining
 Margin
 (US$/bbl)           15.64          -    n/a       13.69          -    n/a

Cash capital
 expenditures        9,871          -    n/a      14,754          -    n/a
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(1) Revenues are net of royalties and risk management activities
(2) These are non-GAAP measures; please refer to "Non-GAAP Measures" in
    Harvest's Second Quarter 2007 MD&A filed on SEDAR.
(3) Net Income includes a future income tax expense of $177.7 million for
    the three and six months ended June 30, 2007. Please see Note 14 to the
    Consolidated Financial Statements for further information.