NuStar GP Holdings, LLC Reports Fourth Quarter 2008 and Record Full Year 2008 Earnings and Announces Quarterly Distribution

NuStar GP Holdings, LLC (NYSE:NSH) today announced earnings of $10.7 million, or $0.25 per unit, for the fourth quarter of 2008, compared to $9.2 million, or $0.22 per unit, earned in the fourth quarter of 2007. For the year ended December 31, 2008, earnings were a record $66.3 million, or $1.56 per unit, over 1.5 times higher than the $43.3 million, or $1.02 per unit, earned in 2007.

With respect to the quarterly distribution to unitholders for the fourth quarter of 2008, NuStar GP Holdings, LLC announced that its board of directors has declared a distribution of $0.43 per unit, which would equate to $1.72 per unit on an annual basis. This quarterly distribution represents an increase of $0.07 per unit, or 19.4 percent, over the $0.36 distribution for the fourth quarter of 2007 and will be paid on February 17, 2009, to holders of record as of February 5, 2009.

Distributable cash flow available to unitholders for the fourth quarter of 2008 was $18.5 million, or $0.44 per unit, compared to $15.9 million, or $0.37 per unit, for the fourth quarter of 2007. For the year ended December 31, 2008, distributable cash flow available to limited partners was a record $69.2 million, or $1.63 per unit, compared to $58.9 million, or $1.39 per unit, last year.

"I am pleased with the record earnings that NuStar GP Holdings, LLC reported for 2008 with the increase over last year primarily driven by NuStar Energy L.P.’s strong results from its asphalt operations. The distributions received from NuStar Energy L.P. allowed us to increase the distribution to our unitholders in 2008 by nearly 15 percent over the 2007 distribution. We are optimistic about NuStar Energy L.P.’s growth prospects, and we continue to expect to benefit from our investment in them,” said Curt Anastasio, Chief Executive Officer and President of NuStar Energy L.P. and NuStar GP Holdings, LLC.

A conference call with management is scheduled for 11:00 a.m. ET (10:00 a.m. CT) today, January 26, 2009, to discuss the financial results for the fourth quarter and full year of 2008. Investors interested in listening to the presentation may call 800-622-7620, passcode 80060009. International callers may access the presentation by dialing 706-645-0327, passcode 80060009. The company intends to have a playback available following the presentation, which may be accessed by calling 800-642-1687, passcode 80060009. A live broadcast of the conference call will also be available on the company’s Web site at www.nustargp.com.

NuStar GP Holdings, LLC is a publicly traded limited liability company that owns the two percent general partner interest, an 18.5 percent limited partner interest and the incentive distribution rights in NuStar Energy L.P., one of the largest asphalt refiners and marketers in the U.S. and the second largest independent liquids terminal operator in the nation with operations in the United States, the Netherlands Antilles, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit NuStar GP Holdings, LLC’s Web site at www.nustargp.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release includes forward-looking statements regarding future events. All forward-looking statements are based on the company's beliefs as well as assumptions made by and information currently available to the company. These statements reflect the company's current views with respect to future events and are subject to various risks, uncertainties and assumptions. These risks, uncertainties and assumptions are discussed in NuStar GP Holdings, LLC’s 2007 annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.