Baytex Energy Trust Announces First Quarter 2008 Results and Updated Guidance for 2008

Market Wire, May, 2008

Baytex Energy Trust (TSX: BTE.UN) (NYSE: BTE) is pleased to announce its operating and financial results for the three months ended March 31, 2008 and provide updated production and capital spending guidance for 2008.

Highlights

- Generated record cash flow of $101.6 million in the quarter ($1.12 per diluted unit), 70% higher than Q1/07 and 3% higher than the previous record set in Q4/07;

- Increased monthly distributions to $0.20 per unit commencing with the distribution in respect of March operations;

- Maintained a low and sustainable payout ratio of 47% before DRIP (38% after DRIP);

- Reduced total monetary debt by $8 million to $436 million during the quarter or 1.1 times annualized Q1/08 cash flow;

- Continued our 100% drilling success at Seal, adding 10 new production wells;

- Generated a total market return (1) of 23.2% during the quarter; and

- Announced an agreement to acquire Burmis Energy Inc, adding production and reserves at accretive metrics, further diversifying our product mix and expanding our light oil and natural gas development inventory.

(1) total market return = unit price appreciation plus cash distributions, assuming distributions are reinvested

                                               Three Months Ended
                                    ----------------------------------------
                                     March 31,   December 31,      March 31,
FINANCIAL                                2008           2007           2007
                                    ----------------------------------------
($ thousands, except per unit
 amounts)
Petroleum and natural gas sales       263,957        233,348        161,189
Cash flow from operations (1)         101,570         98,667         59,651
 Per unit - basic                        1.19           1.17           0.79
          - diluted                      1.12           1.10           0.74
Cash distributions                     38,474         37,314         34,052
 Per unit                                0.56           0.54           0.54
Net income                             35,848         41,353         23,783
 Per unit - basic                        0.42           0.49           0.32
          - diluted                      0.41           0.48           0.30

Exploration and development            51,003         34,349         45,209
Acquisitions - net of dispositions        581          5,064           (237)
Total capital expenditures             51,584         39,413         44,972

Long-term notes                       184,967        177,805        207,460
Bank loan                             198,045        241,748        141,387
Convertible debentures                 15,041         16,150         17,643
Working capital deficiency             37,909          8,362         15,057
Total monetary debt (2)               435,962        444,065        381,547



                                               Three Months Ended
                                    ----------------------------------------
                                     March 31,   December 31,      March 31,
OPERATING                                2008           2007           2007
                                    ----------------------------------------
Daily production
 Light oil & NGL (bbl/d)                7,330          8,123          3,484
 Heavy oil (bbl/d)                     22,484         22,196         22,129
 Total oil (bbl/d)                     29,814         30,319         25,613
 Natural gas (MMcf/d)                    50.1           53.9           50.6
 Oil equivalent (boe/d @ 6:1)          38,157         39,304         34,041

Average prices (before hedging)
 WTI oil (US$/bbl)                      97.90          90.68          58.27
 Edmonton par oil ($/bbl)               97.50          86.41          67.09
 BTE light oil & NGL ($/bbl)            84.91          74.77          51.08
 BTE heavy oil ($/bbl) (3)              59.65          50.13          40.17
 BTE total oil ($/bbl)                  65.66          56.37          41.66
 BTE natural gas ($/Mcf)                 7.42           6.31           7.43
 BTE oil equivalent ($/boe)             61.16          52.32          42.38

TRUST UNIT INFORMATION
TSX (C$)
 Unit Price
  High                              $   23.40       $  20.65       $  22.28
  Low                               $   16.30       $  18.08       $  18.83
  Close                             $   22.78       $  19.00       $  20.32
 Volume traded (thousands)             25,748         17,426         21,850

NYSE (US$)
 Unit Price
  High                              $   23.34 $        21.74 $        18.48
  Low                               $   15.88 $        18.19 $        16.01
  Close                             $   22.16 $        19.11 $        17.67
 Volume traded (thousands)              4,786          5,433          4,180

Units outstanding (thousands) (4)      88,474         87,169         78,290

(1) Cash flow from operations is a non-GAAP term that represents cash
    generated from operating activities before changes in non-cash
    working capital and other operating items (see reconciliation under
    MD&A). The Trust's cash flow from operations may not be comparable to
    other companies. The Trust considers cash flow a key measure of
    performance as it demonstrates the Trust's ability to generate the cash
    flow necessary to fund future distributions and capital investments.

(2) Total monetary debt is a non-GAAP term, and is defined in note 15 to the
    consolidated financial statements.

(3) Heavy oil wellhead prices are net of blending costs.

(4) Number of trust units outstanding includes the conversion of
    exchangeable shares at the respective exchange ratios in effect at the
    end of the reporting periods.