TULSA, Okla. – Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it plans to sell 1.8 million common units in a registered offering. Management intends to use the net proceeds from this offering to fund the previously announced pipeline acquisition from affiliates of Shell Oil Products US that is currently expected to close by October 1, 2004.

Lehman Brothers Inc. and Citigroup Global Markets Inc. will act as joint book-running managers of the common unit offering. In addition, Goldman, Sachs & Co. and UBS Securities LLC have been named as co-managing underwriters.

A copy of the prospectus supplement and related base prospectuses relating to the common unit offering may be obtained from Lehman Brothers Inc., c/o ADP Financial Services, Integrated Distribution Services, 1155 Long Island Avenue, Edgewood, NY 11717, Phone: 631-254-7106, Fax: 631-254-7268, e-mail: niokioh_wright@adp.com, or Citigroup Global Markets Inc., Brooklyn Army Terminal, Attn: Prospectus Department, Floor 8-I, 140 58 th Street, Brooklyn, NY 11220, Phone: 718-765-6732, or from any of the other underwriters.

The underwriters have the option to purchase up to 270,000 additional common units from Magellan Midstream Holdings, L.P., the owner of the partnership's general partner, to cover over-allotments, if any. The exercise of the over-allotment option would not increase the number of common units outstanding.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.

About Magellan Midstream Partners, L.P. 

Magellan Midstream Partners, L.P. is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products. More information is available at http://www.magellanlp.com. 

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Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the partnership believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission.