Energy Transfer Partners, L.P. (NYSE: ETP) today announced it has commenced a public offering of 6,000,000 common units representing limited partner interests, with a 30-day option for the underwriters to purchase up to an additional 900,000 common units. Net proceeds from the offering will be used by ETP to repay amounts outstanding under its revolving credit facility.

Morgan Stanley, Barclays Capital, Credit Suisse, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers. A copy of the preliminary prospectus supplement and prospectus relating to the offering may be obtained from the following addresses:

Morgan Stanley

Attn: Prospectus Dept.

180 Varick Street, 2^nd Floor

New York, NY 10014

Email: prospectus@morganstanley.com

Telephone: 866-718-1649

Barclays Capital

c/o Broadridge, Integrated Distribution Services

1155 Long Island Avenue

Edgewood, NY 11717

Email: Barclaysprospectus@broadridge.com

Telephone: 888-603-5847

Credit Suisse

Attn: Prospectus Dept.

One Madison Avenue

New York, NY 10010

Telephone: 800-221-1037

J.P. Morgan

Attn: Prospectus Library

4 Chase Metrotech Center, CS Level

Brooklyn, NY 11245

Telephone: (718) 242-8002

Fax: (718) 242-8003

Wells Fargo Securities

Attn: Equity Syndicate Dept.

375 Park Avenue

New York, NY 10152

Email: equity.syndicate@wachovia.com

Telephone: 800-326-5897

You may also obtain these documents for free when they are available by visiting EDGAR on the SEC web site at www.sec.gov.

This press release shall not constitute an offer to sell or the 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 meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering will be made pursuant to an effective shelf registration statement and prospectus filed by ETP with the SEC.

Energy Transfer Partners, L.P. (NYSE: ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. ETP’s natural gas operations include gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. ETP currently has more than 17,500 miles of pipeline in service and has a 50% interest in joint ventures that have approximately 500 miles of interstate pipeline in service. ETP is also one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.

Energy Transfer Equity, L.P. (NYSE: ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners, L.P. and approximately 62.5 million ETP limited partner units.

Statements about the offering may be forward-looking statements as defined under federal law. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of ETP, and a variety of risks that could cause results to differ materially from those expected by management of ETP. ETP undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.