Enbridge Reports Another Good Quarter

Enbridge Inc. (TSX: ENB) (NYSE: ENB) "Earnings for the first half of 2007 were again consistent with our expectations, increasing 7% from the prior year," said Patrick D. Daniel, President and Chief Executive Officer. "The increase reflects steady performance across our diversified business segments. Project execution is currently a high priority with many of our previously announced organic growth projects nearing or entering the construction phase. The investment in these projects will generate decades of favourable cash flow and should support our medium-term goal of 8% to 10% average annual earnings per share growth over the next five years.

"A key driver of growth is the expansion of our crude oil pipeline system," continued Mr. Daniel. "Currently, we are developing three large mainline expansion projects - the Southern Access Expansion, the Alberta Clipper project and the Line 4 Extension, which are expected to start coming into service in 2009. We are also advancing a number of transportation and storage projects upstream of the mainline hubs at Edmonton and Hardisty, including the Waupisoo Pipeline which is currently under construction and expected to be in service in 2008. Downstream of the Chicago hub, we are undertaking several projects such as the expansion of the Spearhead Pipeline only one year after the pipeline started moving crude from Chicago to Cushing; and the Southern Access Extension from Chicago to Patoka, Illinois.

"In addition to our crude oil pipelines, we are developing projects to bring diluent to the oil sands. One such project is the Southern Lights Pipeline, currently under construction. This pipeline is expected to bring 180,000 barrels per day of diluent from Chicago to Alberta to be blended with bitumen from the oil sands, and be in service in 2010.

"Our gas businesses outlook is also positive in light of continued growth and the upcoming multi-year incentive regulation at Enbridge Gas Distribution (EGD) and as we extend our offshore gas pipelines system to connect new U.S. Gulf offshore discoveries."

On July 31, 2007, the Enbridge Board of Directors declared quarterly dividends of $0.3075 per common share and $0.34375 per Series A Preferred Share. Both dividends are payable on September 1, 2007 to shareholders of record on August 15, 2007.

Consolidated Earnings

                                               Three months      Six months
(millions of Canadian dollars)                ended June 30,  ended June 30,
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                                                2007   2006    2007    2006
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Liquids Pipelines                               65.8   68.6   134.7   134.9
Gas Pipelines                                   13.4   15.9    39.1    31.9
Sponsored Investments                           33.4   23.2    51.2    43.4
Gas Distribution and Services                   23.7   34.0   133.1   120.0
International                                   24.0   21.3    46.0    43.1
Corporate                                      (13.8)  (5.1)  (30.6)  (24.5)
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                                               146.5  157.9   373.5   348.8
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Earnings applicable to common shareholders were $373.5 million for the six months ended June 30, 2007, or $1.06 per share, compared with $348.8 million or $1.03 per share in 2006. Per share results in 2007 reflected the issuance of 15 million common shares in February 2007. The $24.7 million increase in earnings reflected a number of factors including a higher contribution from Enbridge Gas Distribution (EGD) as weather in its franchise area was colder than normal compared with the first six months of 2006, which were significantly warmer than normal. Enbridge Offshore Pipelines (EOP) earnings increased in the first quarter as 2005 hurricane insurance proceeds were received. Within Sponsored Investments, a dilution gain resulted from Enbridge Energy Partners' (EEP) issuance of more partnership units in the second quarter of 2007. Finally, there were reductions in federal future tax rates in the second quarter of both years however, the reduction in 2006 was much larger and contributed more to earnings in 2006.

Earnings applicable to common shareholders were $146.5 million for the three months ended June 30, 2007, or $0.41 per share, compared with $157.9 million, or $0.47 per share in 2006. The change in earnings reflected similar factors as for the six month results. However, the earnings increases in the second quarter were more than offset by the impact of the tax rate changes in the second quarter of the prior year.

Adjusted Operating Earnings

(millions of Canadian dollars,                 Three months      Six months
except per share amounts)                     ended June 30,  ended June 30,
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                                                2007   2006    2007    2006
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GAAP earnings as reported                      146.5  157.9   373.5   348.8
Significant after-tax non-operating
 factors and variances:
Gas Pipelines
 EOP property insurance recovery
  from 2005 hurricanes                             -      -    (5.3)      -
Sponsored Investments
 Dilution gain on EEP Class A unit issuance    (11.8)     -   (11.8)      -
 EEP unrealized derivative fair value
  losses/(gains)                                (0.4)   0.3     1.6    (2.4)
 Revalue future income taxes due to tax
  rate changes                                   0.3   (6.0)    0.3    (6.0)
Gas Distribution and Services
 Warmer/(colder) than normal weather
  affecting EGD(1)                              (9.8)   9.4   (11.2)   30.7
 Energy Services unrealized derivative
  fair value losses                              0.2      -     4.5       -
 Aux Sable unrealized derivative fair
  value losses                                   8.3      -    11.1       -
 Revalue future income taxes due to tax
  rate changes                                  (3.8) (28.9)   (3.8)  (28.9)
Corporate
 Revalue future income taxes due to tax
  rate changes                                     -  (14.0)      -   (14.0)
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Adjusted Operating Earnings                    129.5  118.7   358.9   328.2
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Adjusted Operating Earnings per Common Share    0.36   0.35    1.01    0.97
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1. The OEB's July 5, 2007 Decision changed the method of calculating
   forecast weather, retroactive to January 1, 2007. The impact of the new
   method was reflected in the second quarter calculation of colder than
   normal weather.