2004 Canadian Tax Information

CALGARY, ALBERTA - Provident Energy Trust (Provident) (TSX-PVE.UN; AMEX-PVX) today announced the tax on distributions received by Canadian unitholders in 2004 was determined to be 71 percent taxable and 29 percent tax 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 2004 income tax return. Unitholders holding their units outside such plans will receive a T3 Supplementary Information slip (T3), postmarked on or before March 31, 2005. 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 2004 income tax return.

To read complete Canadian tax information

2004 U.S. Tax Information

Provident Energy has determined that distributions received by U.S. resident unitholders in 2004 are classified as 83 percent qualified dividend and 17 percent tax deferred return of capital. The tax deferred portion should be treated as an adjustment to the cost base of the units. As in previous years, tax information for Canadian unitholders will be provided in March.

For U.S. federal income tax reporting purposes Provident is considered a corporation. As a corporation, Provident distributions to U.S. unitholders can be considered "qualified dividends" as determined under U.S. Internal Revenue Code rules.

To assist with the preparation of 2004 U.S. tax information Provident's transfer agent Computershare Trust Company will issue Form 1099 DIV's to all registered U.S. unitholders. Non-registered holders should receive a Form 1099 DIV from their broker or intermediary.

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.