News Release
Jan. 22, 1998


HOUSTON, -- TE Products Pipeline Company, Limited Partnership (TEPPCO), the operating partnership of TEPPCO Partners, L.P. (NYSE: TPP), today priced an offering by TEPPCO for $390 million principal amount of senior unsecured debt in two issues The offering is being underwritten by Merrill Lynch & Co. and Goldman, Sachs & Co.

Series A will be $180 million of 6.45 % senior notes due 2008, which will mature on January 15, 2008, and will not be subject to redemption prior to maturity. Series B will be $210 million of 7.51 % senior notes due 2028, which will mature on January 15, 2028, and will be subject to redemption after January 15, 2008, at the election of TEPPCO at the redemption prices set forth in the prospectus. Interest on the notes will be paid semiannually in arrears on January 15 and July 15 of each year, beginning July 15, 1998. The debt offering has been rated BBB+ by Standard and Poor’s and Baa2 by Moody’s Investors Service.

The net proceeds from the sale of the notes, estimated to be approximately $387 million, will be used to repay TEPPCO’s First Mortgage Notes of approximately $327 million, together with substantially all of the redemption premium thereon of approximately $70 million. The balance of the redemption premium will be paid from cash of TEPPCO. The offering is scheduled to close on January 27, 1998.

This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

TB Products Pipeline Company, Limited Partnership, the operating partnership of TEPPCO Partners, L.P., which is a publicly traded master limited partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States.

Contact: Eric W. Thode
Phone: 713 759-3635
24 Hour Phone: 704 382-8333