2003 Canadian Tax Information

Provident Energy Trust ("Provident") announced the tax on distributions received by Canadian unitholders in 2003 was determined to be 59 percent taxable and 41 percent deferred return of capital ("ROC").

Canadian unitholders holding their Provident investment in a Registered Retirement Savings Plan, Registered Retirement Income Fund or Deferred Profit Savings Plan should not report any income related to distributions on their 2003 income tax return. Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip ("T3"), postmarked on or before March 31, 2004. Provident's Canadian registered unitholders should receive a T3 from Provident's transfer agent, Computershare Trust Company of Canada. Unitholders that hold their units through a broker or other intermediary should receive a T3 directly from their broker or intermediary and not from Provident or Provident's transfer agent. Unitholders are to report the taxable portion of distributions received as "other income" on their 2003 income tax return.

To read complete Canadian tax information

2003 U.S. Tax Information

For 2003, it has been determined that 73 percent of distributions received by U.S. unitholders are classified as qualified dividends and 27 percent are tax deferred return of capital.

Provident had previously reported that 100 percent of its distribution in 2003 was taxable as a qualified dividend.This revision may result in a potential refund for U.S. unitholders. To claim a refund, Form 1040X will need to be completed and filed by the unitholder. A professional tax preparer will be able to assist in the completion of this form. The statutory limitation for claiming a refund is three years from the date of the initial tax filing.

This does not constitute and is not intended to be legal or tax advice to any particular holder or potential holder of Provident units. Holders or potential holders of Provident units are urged to consult their own legal and tax advisors as to their particular U.S. federal income tax consequences of holding Provident units.