TULSA , Okla. – The board of directors for the general partner of Magellan Midstream Partners, L.P. (NYSE: MMP) has increased the partnership’s quarterly cash distribution to 70.25 cents per unit for the period July 1 through Sept. 30, 2008, representing its thirtieth consecutive quarterly distribution increase. The partnership had indicated in a news release on Oct. 9 that the board of directors was expected to approve the increase.

The third-quarter distribution is 9 % higher than the third-quarter 2007 distribution of 64.375 cents per unit and represents a 2 % increase over the second-quarter 2008 distribution of 68.75 cents.

The new distribution, which equates to $2.81 per unit on an annualized basis, will be paid Nov. 14, 2008 to unitholders of record at the close of business on Nov. 7.

The partnership plans to announce third-quarter earnings before the market opens on Mon., Nov. 3. An analyst conference call is scheduled at 1:30 p.m. Eastern the same day, during which management plans to discuss third-quarter results and expectations for the remainder of 2008. To participate, dial ( 888) 778-9058 and provide code 2504671. Investors also may listen to the call via the partnership’s web site at http://www.magellanlp.com/webcasts.asp.

This announcement is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b), with 100% of the partnership’s distributions to foreign investors attributable to income that is effectively connected with a United States trade or business. Accordingly, Magellan’s distributions to foreign investors are subject to federal income tax withholding at a rate of 35%.

About Magellan Midstream Partners, L.P. 

Magellan Midstream Partners, L.P. (NYSE: MMP) 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 management 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.