/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION 
IN THE UNITED STATES/

CALGARY--(CCNMatthews - May 20) - AltaGas Income Trust ("AltaGas" or the 
"Trust") is pleased to announce that it has adopted a Premium 
Distribution(TM), Distribution Reinvestment and Optional Unit Purchase Plan 
("trust unitholder plan") for holders ("trust unitholders") of the trust 
units ("trust units") of AltaGas Income Trust and a Premium Distribution(TM), 
Distribution Reinvestment and Optional Unit Purchase Plan ("limited 
partnership unitholder plan") for holders ("limited partnership unitholders") 
of Class B limited partnership units ("exchangeable units") of either AltaGas 
Holding Limited Partnership No. 1 or AltaGas Holding Limited Partnership No. 
2 (collectively, the "AltaGas LPs").

Trust unitholders and limited partnership unitholders (collectively, the 
"unitholders") of record on May 25, 2004 may now elect to participate in the 
trust unitholder plan or the limited partnership unitholder plan 
(collectively, the "Plans"), as applicable, commencing with the monthly cash 
distribution or cash payment payable on June 15, 2004. To participate in the 
applicable Plan, eligible registered unitholders must deliver the appropriate 
properly completed and signed authorization forms provided by the Trust for 
such purpose to Computershare Trust Company of Canada no later than 3:00 p.m. 
(Calgary Time) on the business day immediately preceding a distribution 
record date in order for the cash distribution or cash payment to which such 
record date relates to be reinvested or invested, as the case may be, under 
the applicable Plan.

Beneficial owners of trust units or exchangeable units (i.e. owners of trust 
units or exchangeable units that are held through a nominee such as a broker 
or custodian) who wish to participate in the applicable Plan should contact 
their broker, investment dealer, financial institution or other nominee who 
hold their trust units or exchangeable units to provide instructions 
regarding their participation in the applicable Plan.

Participation in the Plans is subject to proration in certain events.

Premium Distribution(TM) Component of the Plans

The Plans provide an opportunity for eligible unitholders to elect, under the 
Premium Distribution(TM) component, to direct that cash distributions paid by 
AltaGas in respect of their existing trust units be reinvested or cash 
payments made by the AltaGas LPs in respect of their exchangeable units be 
invested in new trust units at 95% of the average market price (as defined in 
the applicable Plan) of a trust unit on the applicable distribution date and 
to exchange such new trust units for a premium cash distribution equal to 
102% of the cash distribution or cash payment that such unitholders would 
have otherwise been entitled to receive on such distribution payment date. 
Canaccord Capital Corporation will act as plan broker under the Premium 
Distribution(TM) component of both Plans. Currently, unitholders who are 
"control persons" under securities legislation are not eligible to 
participate in the Premium Distribution(TM) component of either Plan.

Distribution Reinvestment Component of the Plans

The Plans will also enable eligible unitholders to direct cash distributions 
paid by AltaGas in respect of their existing trust units be reinvested or 
cash payments made by the AltaGas LPs in respect of their exchangeable units 
be invested in additional trust units at 95% of the average market price of a 
trust unit on the applicable distribution date. Additional trust units 
purchased under either Plan will be credited to an account for the unitholder 
in accordance with the Plans.

Optional Cash Payment Component of the Plans

The Plans also allow unitholders who participate in either the Premium 
Distribution(TM) component or the distribution reinvestment component of the 
applicable Plan to purchase new trust units from the treasury of AtlaGas at 
the average market price in minimum amounts of $1,000 per remittance and 
maximum aggregate amounts of $100,000 per month, all subject to an overall 
annual limit of trust units that may be purchased in this manner under both 
Plans of 2% of the outstanding trust units.

Generally, no commissions, service charges or brokerage fees will be payable 
by unitholders who participate in the Plans, but unitholders should make 
enquiries with their broker, investment dealer or financial institution 
through which their trust units or exchangeable units are held as to any 
policies of such party that would result in any charges, fees or commissions 
being payable under the applicable Plan.

AltaGas reserves the right to determine how much new equity is available 
under the Plans on any particular distribution date. Accordingly, 
participation may be pro-rated in certain circumstances.

Please note that registered and beneficial owners of trust units and

registered and beneficial owners of exchangeable units who are not

resident in Canada are not eligible to participate in the applicable

Plan.

Participation in the applicable Plan does not relieve unitholders of any 
liability for taxes that may be payable on cash distributions or cash 
payments. Unitholders should consult their tax advisors concerning the tax 
implications of their participation in the applicable Plan having regard to 
their particular circumstances.

Unitholders are encouraged to carefully read the complete text of the

applicable Plan before making any decisions regarding their participation

in such Plan.

The full text of the Plans, an accompanying series of questions and answers, 
authorization forms and cash payment forms will be mailed to registered trust 
unitholders of AltaGas and registered limited partnership unitholders of the 
AltaGas LPs. Copies of these materials will also be made available on 
AltaGas' website at www.altagas.ca under the heading "DRIP".

AltaGas moves energy from its source to the end user, adding value through 
the process. The Trust has over $900 million of assets and a market 
capitalization of approximately $850 million. Its steadily expanding asset 
base today includes natural gas gathering and processing facilities, 
interests in ethane and natural gas liquids extraction plants, and 
transmission pipelines. AltaGas distributes natural gas to Alberta customers 
through AltaGas Utilities Inc., to customers in the Northwest Territories 
through the Ikhil Gas Project and distributes gas in Nova Scotia through its 
interest in Heritage Gas Limited. The Trust provides energy services to 
customers, including marketing of natural gas and natural gas liquids and 
sale of power from its power purchase based arrangements.

AltaGas' trust units are listed on the Toronto Stock Exchange under the 
symbol ALA.UN. The Trust is included in the S&P/TSX Capped Income Trust Index 
and the S&P/TSX Capped Energy Trust Index.

When used in this press release, the words "anticipate", "estimate", and 
similar expressions are intended to identify forward looking statements. Such 
statements are subject to certain risks, uncertainties and assumptions that 
could cause actual results to differ materially from those contemplated in 
the forward looking statements. These risks and uncertainties include 
operating performance, regulatory and environmental issues, weather and 
economic conditions, competition and financing availability. For additional 
information on these and other factors see the reports filed by AltaGas with 
Canadian securities regulators. AltaGas disclaims any intention or obligation 
to update or revise any forward looking information whether as a result of 
new information or future event.

Media
Dennis Dawson
(403) 691-7534
Email: dennis_dawson@altagas.ca


or


Investment Community
Marilyn Pfaefflin
(403) 691-7540
Email: marilyn_pfaefflin@altagas.ca
Website: www.altagas.ca